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THE LEDGERS OF LIFE
One can imagine life as a set of ledgers:
- Health
- Reputation
- Habits
- Money
- Time
etc.
Common mistakes:
- Transfers between ledgers are limited & often one-way
- Debts in a ledger will come due
- Bankruptcy in a ledger spreads to the others.
(thread)
One can imagine life as a set of ledgers:
- Health
- Reputation
- Habits
- Money
- Time
etc.
Common mistakes:
- Transfers between ledgers are limited & often one-way
- Debts in a ledger will come due
- Bankruptcy in a ledger spreads to the others.
(thread)
2/ When we choose the short-term for the longer one, we incur a debt inside that ledger.
For example, if I borrow money, I will have to give it back.
Same with trust: if I break a promise, I "spend" or "borrow" trust. I have limited time to pay it back, with interests.
For example, if I borrow money, I will have to give it back.
Same with trust: if I break a promise, I "spend" or "borrow" trust. I have limited time to pay it back, with interests.
3/ The same with health: whenever I decide not to exercise for a few days, I "spend" or "borrow" part of my health.
Whether I spend it or borrow it depends on whether I use it to increase its returns.
Eg. injury recovery = borrowing, as it allows me to exercise soon after
but…
Whether I spend it or borrow it depends on whether I use it to increase its returns.
Eg. injury recovery = borrowing, as it allows me to exercise soon after
but…
4/ …but if I skip exercise and do not compensate it by exercising more soon, the "withdrawal" becomes a "spending" rather than a "borrowing".
The amount withdrawn hadn't been put to use, and therefore is wasted.
The amount withdrawn hadn't been put to use, and therefore is wasted.
5/ Sometimes we can make transfers between ledgers.
E.g. exchange time for money (by working) or exchange health for money (by buying cheap unhealthy food).
E.g. exchange time for money (by working) or exchange health for money (by buying cheap unhealthy food).
6/ Some of these transfers can only happen one-way, or have very bad rates in the other way.
For example, it's much easier to exchange trust for money (scams / asking for money) than the other way around.
For example, it's much easier to exchange trust for money (scams / asking for money) than the other way around.
7/ Life doesn't care about your total balance across all ledgers. You go bankrupt if one of your ledgers goes to zero, regardless of your balance in the others.
E.g. if you're very unhealthy, how much money you have doesn't count.
E.g. if you're very unhealthy, how much money you have doesn't count.
8/ Happiness is a (often forgotten) ledger. If it goes to 0 → depression.
Trust/reputation with one's family is a tricky ledger, as it is infinitely easier to withdraw than to deposit.
Trust/reputation with one's family is a tricky ledger, as it is infinitely easier to withdraw than to deposit.
9/ Summing it up, three underrated rules:
- Borrowing in one ledger has to be paid in the same ledger.
- Whether a withdrawal is "spending" or "borrowing" depends how you put the withdrawn amount to use.
- Bankruptcy can happen because of a single ledger going to 0.
- Borrowing in one ledger has to be paid in the same ledger.
- Whether a withdrawal is "spending" or "borrowing" depends how you put the withdrawn amount to use.
- Bankruptcy can happen because of a single ledger going to 0.
