Morgan Housel writes about money is some wonderful ways. He talks about Newton and Darwin, which to me is logic v human nature. If we are asked about compound interest, we generally know what that means, but accepting its consequences, human nature gets in the way. The winner is often human nature. In Housel’s words, Darwin is often in control.
If you get a chance to read his article, here’s the link. If we accept that Darwin is in control, and at the same time we also have cognizance of that control, we can be mindful of Newton. If we are blissfully accepting of Darwin’s control, Newton rarely gets a chance. As such the consequences in allocating your capital for your future, and your family’s future can be dismal.