"Where is the wisdom we have lost in knowledge?" - T.S. Eliot

“We've all been raised on television to believe...we'd all be millionaires, and movie gods, and rock stars. But we won't. And we're slowly learning that fact. And we're very, very pissed off.” ― Chuck Palahniuk

The traditional American Dream is toast. As a result, three micro-cultures have developed in an attempt to compensate, and respond to this fact. They are: "not with that attitude" or, hustle culture, "it's toxic anyways" or, soft living, and "the whole thing is fake" or, financial nihilism. There are fringe "burn down the system" movements, but these three are most common. There is also a proposed fourth, to be introduced later. These 3 cultures are fluid and can change for someone based on individual circumstances.

"We castrate and bid the geldings be fruitful." - C.S. Lewis

Therefore, we are not struggling from lack of good content creation, gamified apps, self-help, technology, or knowledge either in the form of financial literacy programs or awareness campaigns. The reason we are struggling and failing is because we stopped training and building prudence. There is an expectation of good habits, financial or otherwise, but we removed the means to establish them. Believing they are too slow, and inconvenient. While having a personal finance AI agent can be very useful, without virtue, we will become dependent, relinquishing our growth, potential stories, and well-being.

X- Axis: How the World is Seen 👓

Y- Axis: What We Listen To 🎧

🎧 What We Listen To

🏃Behavior

Clayton Christensen in How Will You Measure Your Life? highlights a similar bias. He uses the idea of marginal cost analysis, a method to determine whether a business decision will increase revenue and lower costs. He uses Blockbuster’s story of ignoring competing against or acquiring Netflix early on because of Blockbuster’s overconfidence in their fat margins from late fees and rentals; whereas Netflix was perceived as a lower margin, niche product. Blockbuster being overconfident in their success, brand, and margins, eventually led to being disrupted, and then bankruptcy. Christensen uses this as a metaphor and warns about the slippery slope of low marginal costs: “the price of doing something wrong just this once usually appears alluringly low. It suckers you in, and you don’t see where that path is ultimately headed or the full cost that the choice entails.” The point is, when we conflate money, success, power with our identity, we either become despondent when we lose some of it, or we sacrifice integrity (our soul) in order to hold onto it...and we never saw it coming because we were inconsiderate of the facts.

🐴 How We Get Persuaded (Pull in the Trojan Horse)

The "vacation" is the salesperson's best ally. This is the vivid image conceptualized in the mind. It is the dream lifestyle, the allure of mass wealth, and the power it promises. It seems good and right, but one subtle angle to cause thoughtlessness and being inconsiderate is the power of suggestion via questioning our ability - "Don’t you want to prove yourself?" "You're a coward" "You don't have what it takes anyways" "Have fun staying poor!" This leads to us ignoring or diminishing red flags to prove our worth. Another tactic is the sunk costs fallacy: "you've some this far, invested so much time, energy, and money so far...can't stop now." Or as mentioned, overconfidence: "look at your success so far." I know what I'm doing, I can handle this, they don't know what they're talking about, or know who I am--I'll show them.

🤺 Defense

🎧 What We Listen To

🏃Behavior

Negligentia is another reason for imprudence. Translated as negligence, it is not a mistake of action, but rather inaction. It is a willful ignorance, but certainly justified, and/or blinded by the bias of Loss Aversion (fear). It can also be a consequence of Imposter Syndrome (fear that people will find you out you don’t actually have what it takes). Sometimes it is from a poor interpretation of facts, ie: I got a C on a test, therefore I am dumb, so why even try? The fact of getting a C is true, but the interpretation of “I am dumb” is not true. In that moment, a feeling became a standard and dictates your behavior to find comfort. Other scared money expressions may also manifest as conservative action; or playing not to lose. And while being busy and working with your hands can be a defense, to not get too much into your head, it can also be deceptive. Doing too much "busy" yet pointless activity, or planning great things without follow through is as toxic as using self-care as a disguise for avoidance. Consuming lots of self-help content to feel like progress is being made even though no action is taken is another iteration of "busy" activity.

🐴 How We Get Persuaded (Pull in the Trojan Horse)

The quickest way to get hooked is overt fear. There is much profit to be gained from our fears. “Bad things will happen if...” “Do you really want to go through this again?” Passively allowing a narrative of images, or lots of information make us question our true identity and self-worth. Algorithms can also do this. The result is an insecurity, and anxiety created in us. The salesperson knows we aim to find comfort and stability when we feel this way, thus leaving us open for emotional hijacking rooted in flattery, pity, fear, half-truths, and gaslighting. They tell us what we want to hear, making it easier to buy what they are selling. The really deceptive version of the game is not for us to be pitied by someone selling us something, but to set it up in a way where we can give it. Pity allows you to feel better than others without conflict. In short, feeling sorry for ourselves, or others justifies status quo and neglecting personal growth. Whatever the tactic, the goal is to get you to reject or bury or be negligent of your potential, so someone else can profit off you, your time, your energy.

🤺 Defense

🎧 What We Listen To

🏃Behavior

Precipitatio is another cause for imprudence. A helpful translation is impulsivity. It plays out as a Fixed-Cost Present Bias (meaning a preference for immediate rewards as opposed to delayed gratification). This can be justified through entitlement, conformity and/or mimetic desire. The “I want it now” mentality facilitates addiction. Emotions take over, justifying "chasing losses" and/or "gamer's tilt" (where after a loss, you lose control and make irrational decisions). Stupid Money can look like poor spending habits, "78% of professional athletes go broke after just three years of retirement” (Craig Brown, NKSFB Sports Business Division). Anger and disillusionment of unfair systems and institutions is the cultural response. For example, "financial nihilism" is the denial that traditional hard work, saving, and investing will lead to financial stability, and so the only real option is making high risk, high reward, absurd speculative bets like highly leveraged memecoins, or 15 leg parlays.

🐴 How We Get Persuaded (Pull in the Trojan Horse)

The tactic is to get us to over-index on emotions, and desire to drive us to get the benefits or “vacation.” Once the desire is strong there is an openness to over-spiritualizing (or confirmation bias). In other words, any half truths people tell you; or unrelated events you experience or seen as a "green light" or sign from the universe and/or permission. Other sinister desire drivers are social proof, and “rags to riches” and “get rich quick” narratives (if it worked for them). These narratives include vivid benefits, material things, and luxury travel. The close is often emotionally-driven high pressure sales (urgency), or speaking to entitlement (you deserve happiness more than they do). People operating from Selfish Money will do what they can to get you to be in a state of Stupid Money. They get you to make an impulsive decision in their favor, and then make it impossible to get your investment back. Impulsivity can also occur through fatigue, either through excessive content (brainwashing), or classic dopamine dependency. Finally, rage baiting is an easy way to drag you into impulsivity, and into a poisonous cycle of “doom scrolling” leaving you open to emotional hijacking.

🤺 Defense

Keep scrolling to House Money or Jump to a different section.

🎧 What We Listen To

🏃Behavior

The thinking here is that behind our wants is a desire for a certain state of being. Behind the desire for a sports car, or someone else's life is not the thing, but what is promises to make us feel. The premise of House Money is to adapt the game. It isn't about endlessly chasing things to get that feeling, but to recognize it is available now. That state of being? Gratitude, joy, fearlessness, playing to win, confidence, taking calculated risks, being more generous, initiating hospitality, having less expectation and entitlement. This is what we see and want when we see successful and "happy" people. This is what people try to sell us.In that state, any generosity given is more unconditional in nature, any ROI is viewed as a gift, not an expectation. It just means more house money to play with. If a kind act or gesture is not reciprocated, it is not a cause of pettiness. There is plenty. It doesn't mean don't have backbone or boundaries, it just means expectations are sidelined.In practice, house money is being shrewd. Being shrewd often carries a negative connotation, but it is purely in how you use it. Just like money can be used for good or bad, shrewdness can also be implemented for selfish, or altruistic purposes. The supporting phrase, "wise as serpents" simply creates a reflection on how snakes are incredibly calculating. They are a living SWOT analysis. They know their strengths, their weaknesses, when to strike on opportunities, and manage threats. You have solid sense of self-awareness, a good handle on people, and human nature.Therefore, living with House Money means you establish a "hedge fund" against imprudence, by assembling a team who wants to play the same game worth playing: creating new forms of wealth, solving real problems, and extending prosperity to others by leveraging your existing resources, identity, skills, and imagination. This is where self-worth and net worth can 100x.

🚨 How to Persuade

The dynamic changes since we aren't being baited to drag something in, because house money operates not from lack, but from surplus. The game is figuring out how to be more hospitable with those resources. Parker Palmer puts it this way: "The human soul doesn’t want to be advised or fixed or saved. It simply wants to be witnessed — to be seen, heard and companioned exactly as it is." Shrewdness understands this and can leverage it to gently persuade others to be a part of something bigger than themselves, a game worth playing, something that benefits others, not just them.

🤺 Defense

When all 8 parts of prudence are exercised, something happens: “Magnanimity” (magna-nim-ity). It is just a fancy word, which means greatness of soul. This is essentially your character. Again, Aquinas suggests we can enlarge our soul, or shrink it. Greatness, then, is great people (souls) doing courageous things. Modern examples of practicing this are projects like: yes theory or rejection therapy. Think of Magnanimity as resistance or strength training for your character.Conversely, shrinkage or atrophy of soul is as Aquinas writes, “ignorance of one’s qualifications and on the part of the appetite the fear of failure in what one falsely deems to exceed one’s ability.” Magnanimity then, is growing your character through action. The more you act courageously & live with House Money, the bigger, stronger, greater, wealthier (not money) you get. Note again that "Scared Money" is the antithesis. While Scared and Stupid pull away from living House Money, the shrinking of self in Scared Money is the anti-House Money.

Note: House Money cannot exist without real assets. You cannot fake it, or pretend like you have it. It doesn't work--you will play scared. House Money is a "team sport." It is healthiest when implemented within a group. You have to gather with friends who will tell the truth to each other, and encourage how to use your material and non-material assets.