The fool's fallacy is one of the most recurrent arguments against austerity, savings and investment. In this article I will explain what it consists of and I will dismantle it by demolishing the premises from which this idea so harmful to people and society starts.
What is the fallacy of the playboy?
The fool's fallacy is one of the fallacies most widespread in the world of savings and investment. It consists in arguing that one should not save, but rather spend everything that is entered, since we run the risk of dying without having enjoyed the money that has cost us so much to save.
The fool's fallacy can be found implicitly in many phrases, for example:
- "I don't want to be the richest in the cemetery"
- "You have to live life as if every day was the last"
- "I don't want to live bitter about saving"
- "I spend all the money because I have earned it and I deserve to enjoy it"
Next I will analyze if these arguments make sense.
Dismantled the fallacy of the viviver
The fallacy of the playboy starts from two premises:
- Ignorance of how long you have to live
- Spending all the money available gives greater happiness
I will analyze each of them below.
First premise: ignorance of the time you have left to live
Indeed, you can die tomorrow. However, this is most likely not the case.
Each person has a certain life expectancy. There may be cases of terminally ill people who are an exception, but this is by no means the general rule.
Just because you don't know how long you have to live doesn't mean you should live as if you were going to die tomorrow. Such short-term conduct is not justified and is not responsible. What's more, it has very negative implications both in the financial sphere and in other facets of life.
Second premise: Spending all the money available gives greater happiness
This argument is related to an epidemic that has plagued Western countries for decades and is rapidly spreading throughout the world. I am not referring to obesity, but to consumerism.
If your happiness depends on having the best house, the best car or the best clothes, you have a problem, since it is most likely that you will never be happy.
Personally, I prefer to have an austere life in superfluous expenses, but that allows me to have a financial cushion that gives me security and greater freedom in the future.
As I always say, with a life focused on savings, austerity and investment, you will live a little worse today to live much better tomorrow.
Save and invest, do not fall into the fallacy of the vividor
As you can see, the fallacy of the livelihood is a wrong argument against having an austere lifestyle, saving and investing. My recommendation is that you do not let yourself be convinced by this type of argument that ends up having negative consequences in the long term.
Save part of your savings and invest them wisely, I assure you that it will be worth it and you will end up being happier in the long term.