We are opinionated and a tad contrary, but we think we have a better way
The System was founded on a set of principles that diverge from a lot of the conventional wisdom in the Personal Finance industry. We think we have a better approach, but we know it’s not for everyone. Read on below and decide for yourself.
These are our principles:
Automation trumps Empowerment. “Empowerment” is a nice way of saying “Do it yourself”. If you have to answer questions, do research, or follow advice, it's too much work. Personalized services, not tools, are the future of financial management.
Inherent cognitive biases prevent us from acting in our best interests when it comes to money. Libertarian paternalism can help people make better choices.
Monthly budgets only work if you are paid monthly. Budgets work better when the tine horizon is from last payday to next payday.
Prorating your expenses and goals per paycheck is the most reliable way to ensure your expenses are paid and your goals are funded, all while smoothing out your cashflow. Many people feel rich when they get their paycheck then poor when they pay their rent. Don’t ride this rollercoaster.
Money should be displayed visually instead of just numerically.
Don’t wait for the perfect investment strategy. Time is the great multiplier of money, so a “pretty good” investment strategy enacted today is better than a perfect investment strategy enacted tomorrow.
Until you figure out something better, if that exists, invest everything you have in a Target Date Fund (one made up of index funds, not mutual funds).