[AI Synthesis]: Perfect rationality is a poor guide for real humans. Reasonable plans you can stick with beat optimal plans you abandon.
Reasonable beats coldly rational
- Do not aim to be coldly rational when making financial decisions.
- Aim to be pretty reasonable—more realistic and easier to sustain for the long run.
- That is where the science ends and reality takes over.
Actions
- Prefer a financial rule you will follow for decades over a theoretically optimal rule you will quit under stress.
Sources
| Source | Location | Role |
|---|---|---|
| books/The psychology of money.md | ch11 Reasonable > Rational | primary |
| notes/2026-08-05-the-psychology-of-money.md | ch11 | highlights |