The Boring Newsletter, 11/5/2023

Hi Friendos,

I recently saw a couple ads for investment firms that reminded me: Nobody Advertises Boring. Here is one example:

• Wealthfront says: “How should you invest your money? Whether you’ve got millions or are just starting out, Wealthfront is the best way.”
• I say: hmm, investing into a regular brokerage account is “best”…maybe, maybe not. Are you already getting your full employer match from a workplace retirement plan? Do you have high-interest debt to pay down first? Would it make sense, given your life plan, to prepay your mortgage instead? How could Wealthfront know what is “best” if they don’t know anything about you?

Here’s another:

• Bettermint says: “Hello investor. About once a decade, someone comes along and disrupts an entire industry…Visionaries, revolutionaries, mavericks…Would you know one of those people if you saw one? Are you one? Don’t settle for average investing. Demand better. Betterment! Outsmart average.”
• I say: Don’t foolishly trash “average” investing. Index funds are average and fabulous.

Also consider ubiquitous car ads talking up sweet, sweet financing terms: “This car will give you this fabulous life pictured here, at a monthly payment you can afford!” Nobody runs ads saying it’s a good idea to buy a car with cash. Real estate agents and mortgage brokers rarely encourage you to buy less house or just stay put in your good-enough current home. Food delivery companies don’t talk about how much you’d save by cooking at home.

A lot of the best advice leaves no room for someone else to make a buck: Nobody Advertises Boring. I’ve seen lots of splashy ads for period products like tampons, but was well into my 20s before I even heard of a menstrual cup. Switching to a menstrual cup has saved me thousands over the years, I felt much better about the reduced waste, and it was a massive life upgrade in terms of day-to-day logistics. Years ago, my spouse and I both switched from disposable (highly advertised) brand name razor blades to dirt cheap blades for a safety razor (never seen those advertised). Principles of sound money management are really boring and don’t change over time. Nobody really advertises eating your financial vegetables.

-Stephanie