In 2019, I made the decision to radically reduce the number of possessions I own.

Doing so proved to be one of the best decisions of my life.

As we go into 2021, I encourage you to think about how you could live more by owning less.

This 13 tweet thread explains.👇
1/ In 2019, I watched this @LondonRealTV interview with @aantonop.

Andreas articulated something that I had long sensed: that many of the physical possessions I owned were hindering me rather than improving my life.

His words prompted me to take action.👇
2/ Like @aantonop, I was a frequent traveler and had realized that I didn't need or miss the objects I left behind when I was away.

My apartment was unoccupied for several weeks each year.

The space I was renting had become a very expensive storage cabinet.
3/ Yet I felt I needed to keep it.

There were so many things (books, documents, bulky electronics, toiletries, clothing) that I thought I couldn't do without.

Online minimalists showed me that it was possible to retain the benefits of my possessions while owning fewer of them.
4/ The thing I felt least able to part with was my book collection.

I read a lot, but my “buy to read ratio” was around 3:1.

Rather than a source of joy, my books had started to feel like a psychological burden: a daily reminder of money spent without yet realizing a return.
5/ I decided to let go of the “to do” list that my bookshelf had become, selling all but a handful of my books.

I pledged to end the habit of buying in advance and later reading books out of a sense of obligation to my former self.

From then on, I only bought when ready to read
6/ Instead of relying on physical books I decided to switch to an e-reader.

This allowed me to take my entire book collection with me wherever I went.

The ability to digitally catalogue my book notes also made it easier for me to remember and reference things I'd read.
7/ Thanks to technological progress, so many bulky appliances that were once necessary are now redundant.

Our smartphones and laptops have become our libraries, cinemas, conference suites, filing cabinets and consoles.

As time goes on it is becoming easier for us to own less.
8/ Yet many of us hold on to redundant things without understanding the financial and psychological cost they impose on us.

When we have less stuff, we get back the time we would have spent tidying, maintaining and being distracted, freeing us to pursue more meaningful goals.
9/ Living in an uncluttered environment does wonders for our mental clarity.

When we are surrounded by mess we experience sensory overload.

When clutter is removed we see the world more clearly, which allows us to make better decisions about our lives.
10/ Choosing how much and what to own is a deeply personal decision.

When making it we should not forget that ownership brings with it management and storage costs, as well as the object's benefits.

We should weigh up these pros and cons when we make a new purchase.
11/ Whilst this won’t be the right choice for everyone, I have personally opted for a very minimalist lifestyle.

Everything I own now fits into 2 suitcases.👇

It is liberating to know exactly what I own, and that I can take it with me anywhere on a standard commercial flight.
12/ Indeed, earlier this year I was based in China working for a UK company when Coronavirus started to dominate the headlines.

I was required to relocate quickly.

Had I not been a minimalist, this would have been a much more difficult and costly undertaking.
13/ The things we own in life can end up owning us.

As we start a new year I encourage you to think about the relationship you have with your possessions.

It may be that you're able to free up more space for the things you really value by deciding to let go of clutter.
Thank you for reading.

If you enjoyed this thread please scroll up and retweet the first tweet to help its message reach a wider audience.

For more like this follow me at @TheAustrian3

My collated threads can be accessed on my Medium page: theaustrian3.medium.com
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Tweet 3: mini-documentary by @mattdavella:

Tweet 9 video:

Minimalism: A Documentary About the Important Things:

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More from @TheAustrian3

27 Dec 20
In "A Masterclass in Economic Calculation" @michael_saylor talks to @PrestonPysh about inflation and why he expects more companies to put bitcoin on their balance sheet.

This 6 tweet thread summarizes Michael's argument.

Check out the full episode here: bit.ly/2WPymtu
1/ CPI is losing relevance as a measure of inflation.
 
Businesses looking to understand how much purchasing power their cash will lose should track M2 money supply growth, which approximates the cost of capital.

While US CPI inflation rose only 0.2% in 2020, M2 soared by 24%.
2/ One reason for the disparity is that key items in the basket of goods that make up the CPI are subject to strong deflationary pressure.
 
This is especially true for intangible services such as software and digital entertainment where variable costs per unit are low.
Read 8 tweets
20 Dec 20
Weimar Germany's hyperinflation provides perhaps the most dramatic example of the destruction that ensues when money dies.

This 16 tweet thread summarizes Adam Fergusson's definitive account, and explores the lessons we can learn from this dark period in German history.
1/ During WWI, European powers suspended the gold convertibility of their currencies, issued bonds and printed new bills, as a means of financing their war efforts.

With varying degrees of severity, each introduced price controls in a misguided attempt to suppress inflation.
2/ German price controls were the most stringently enforced in Europe.

At the same time, international isolation forced the government to rely heavily on inflationary domestic bond issuance for their financing.

Economic ruin served as a contributing factor to Germany's defeat.
Read 19 tweets
14 Dec 20
In 1997, "The Sovereign Individual" made predictions about the ways in which the internet will radically alter society.

Many of those predictions, including the rise of "cybercash", are playing out before our eyes.

This illustrated thread summarises the book in 12 Tweets.👇
1/ Humans have passed through three societal epochs:

1. Hunter-Gatherer Society
2. Agricultural Society
3. Industrial Society

Now, looming over the horizon, is something entirely new, a fourth age characterised by the rise of the microprocessor: Information Society.
2/ During the industrial era, in order to realise economies of scale, populations clustered around large factories.

Production clustering made it easier for governments to increase taxes on those operating within their territory, allowing the state to grow in size and power. Image
Read 14 tweets
12 Dec 20
The manufacture of collectables by pre-historic humans was the first step on the road to creating money.

@NickSzabo4's epic essay "Shelling Out" describes how and why this happened.

This illustrated thread summarises Nick's 12,000 words in 12 Tweets.👇
1/ Most hunter gatherers lived a precarious existence on the brink of starvation.

But we know from archaeological records that they made and collected jewellery.

The fact that early humans devoted their scarce resources to this seemingly frivolous activity merits exploration.
2/ Biologist J. M. Smith drew on game theory to describe the way humans evolve to propagate their genes.

Whilst individual humans might benefit from robbing the weak, cooperative tribes do better overall. Cooperation represents the "Nash Equilibrium" that leads to group survival
Read 14 tweets
7 Dec 20
The delusion that governments can successfully manipulate prices has spanned cultures, nations and epochs.

Inspired by Scheuttinger & @eamonnbutler's excellent book "Forty Centuries of Wage & Price Controls", I have catalogued my top 8 historical price control blunders.👇 Image
BABYLONIA

In 1754 BC, the Code of Hammurabi imposed a rigid system of controls over wages, prices, production, and consumption.

Legal prices were set for labour, farm animals and goods like wagons and boats.

A decline in trade followed as merchants departed for foreign lands. Image
ANCIENT ROME

Debasement of coinage by successive emperors led to galloping inflation.

In 284AD Diocletian tried to combat this by setting price ceilings for beef, grain, eggs and clothing.

Merchants responded by withholding goods from markets, leading to widespread shortages. Image
Read 10 tweets
6 Dec 20
To understand economic phenomena we must analyse human action, rather than material objects and their properties.

Inanimate objects are dead matter.

It is human reason shaping humans’ actions that rearranges matter and gives it value, meaning, and purpose.

1/8
Attempts to explain social phenomena by reference to objects, abstract nouns, or collectivist entities are ultimately futile.

Entities do not act, only individuals do.

Quantitative economic methods neglect the fact that there are no constant relations in human action.

2/8
In the natural sciences, establishing a constant relationship like the Ideal Gas Law is possible because measurements are made in fixed units.

Clearly defined and inter-personally agreed-upon units of measurement like joules and kilograms have no equivalent in economics.

3/8
Read 8 tweets

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