It seems plausible to me that traditional financial advice assumes that you have traditional goals (e.g. eventually marrying, eventually owning a house, eventually raising a family, and eventually retiring). Suppose you are an aspiring effective altruist and willing to forgo one or more of these. How does that affect how closely your approach to finances should adhere to traditional financial advice?
I would say that at the beginning you have to make a choice—will you contribute financially or personally?
If you want to contribute financially, you simply want to maximize your income, minimize your expenses, and donate the money to effective charities. (You only minimize your expenses to the level where it does not hurt your income. For example if keeping the high income requires you to have a car and expensive clothes, then the car and clothes are necessary expenses. Also you need to protect your health, including your mental health: sometimes you have to relax to avoid burning out.) Focus on your professional skills and networking.
If you want to contribute personally, you need to pay your living expenses, either from donated money, or by retiring early (the latter is probably less effective). Focus on social skills and research.
The house and family seem unnecessary (at least for the model strawman altruist).
It seems plausible to me that traditional financial advice assumes that you have traditional goals (e.g. eventually marrying, eventually owning a house, eventually raising a family, and eventually retiring). Suppose you are an aspiring effective altruist and willing to forgo one or more of these. How does that affect how closely your approach to finances should adhere to traditional financial advice?
I would say that at the beginning you have to make a choice—will you contribute financially or personally?
If you want to contribute financially, you simply want to maximize your income, minimize your expenses, and donate the money to effective charities. (You only minimize your expenses to the level where it does not hurt your income. For example if keeping the high income requires you to have a car and expensive clothes, then the car and clothes are necessary expenses. Also you need to protect your health, including your mental health: sometimes you have to relax to avoid burning out.) Focus on your professional skills and networking.
If you want to contribute personally, you need to pay your living expenses, either from donated money, or by retiring early (the latter is probably less effective). Focus on social skills and research.
The house and family seem unnecessary (at least for the model strawman altruist).