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When I had cash[1], I mostly kept large cash positions, you'll pretty always find something valuable to do with cash eventually. Whereas getting out of bad/sub-

When I had cash[1], I mostly kept large cash positions, you'll pretty always find something valuable to do with cash eventually. Whereas getting out of bad/sub-optimal assets is trickier. I've had opportunities to invest cash along with labor to get some pretty good stakes in a couple businesses that turned out right. I also didn't realize this at first, so I tried to buy stocks and mutual funds, thus missing out on a couple great deals later when I didn't have the cash. If you're good with money, don't be in such a hurry to get out of cash. If you sit on cash for two years, then make a 60% return on it in year 3, you've outperformed anyone making 10% each year. I'm sure there's a personality type that goes crazy if they're sitting on a significant amount of cash for two years that isn't doing anything, but that's not me. I'd rather be liquid than to have money in bad or even just sub-optimal assets. [1] After the crash, I had enough to live for ~3 years without working too much. I wrote the first draft of a book, wrote some specs out on business ideas to see if any of them really resonated, studied some rationality, biochemistry, and the history of lots of different regions of the world. Did some martial arts, read lots of books, and traveled in a pretty spartan way, mostly slumming it through a dozen or so countries. A couple months ago I felt like it was time to get back into things, my newest professional endeavor soft-launches next Wednesday.

mkramlich 16y ago
Reminded me of the rule I've developed when it comes to evaluating job, contract or startup opportunities: cash is never wrong. Because equity may or may not yield significant value for you. Because the work may or may not be interesting. Because a project may succeed or fail. Because you don't know how long the relationship will last, or whether it will lead to better things via contacts and word of mouth, etc. (though it certainly may.) But getting cash pay is never wrong. Once you have cash, there are tons of other things you can do with it. It can be used to buy you more free time later, more energy, more opportunities, more convenience, more capital for your own startups, better health, more happiness, more security, more toys, more tools, a bigger/healthier family, and, perhaps indirectly, and despite what some people tell you, and most especially if you're a man, money DOES help buy love. Cash is never wrong.

mkramlich 16y ago

Reminded me of the rule I've developed when it comes to evaluating job, contract or startup opportunities: cash is never wrong. Because equity may or may not yield significant value for you. Because the work may or may not be interesting. Because a project may succeed or fail. Because you don't know how long the relationship will last, or whether it will lead to better things via contacts and word of mouth, etc. (though it certainly may.) But getting cash pay is never wrong. Once you have cash, there are tons of other things you can do with it. It can be used to buy you more free time later, more energy, more opportunities, more convenience, more capital for your own startups, better health, more happiness, more security, more toys, more tools, a bigger/healthier family, and, perhaps indirectly, and despite what some people tell you, and most especially if you're a man, money DOES help buy love. Cash is never wrong.