You can afford anything, but not everything. We make daily decisions about how to spend money, time, energy, focus and attention – and ultimately, our life.
How...
Lessons from High-Stakes Decisions, with Polina Marinova Pompliano
#567: What happens when an astronaut goes blind during a spacewalk?
For Chris Hadfield, this wasn't a hypothetical scenario. While working outside the International Space Station, cleaning solution from his helmet visor spread into both eyes, leaving him completely blind in the vacuum of space.
His response? Stay calm and methodically evaluate options. He could call Houston. He could have a crew member rescue him. He could try to cry to flush out his eyes - though that's tricky in zero gravity.
This story opens our conversation with Polina Marinova Pompliano, former Fortune Magazine reporter and author of the new book "Hidden Genius."
Through her interviews with high-performers across fields — from astronauts to investors to extreme athletes — she uncovers patterns in how people handle uncertainty and build resilience.
Take trust, for example. Reid Hoffman's formula is simple: Trust = Consistency + Time.
It's not enough to show up sporadically when it's convenient. Trust builds through meeting deadlines, following through on commitments, and maintaining clear communication — even during challenges.
Reliable consistency compounds over time, much like interest in an investment account.
Or consider Charlie Munger's approach to beliefs. Rather than defending positions "to the death," he argues you should only claim to believe something if you can argue the opposition's viewpoint better than they can. This forces you to genuinely understand different perspectives rather than just reflexively disagreeing.
The conversation explores how people navigate major setbacks, from Conrad Anker surviving an avalanche that killed his climbing partners to Polina's own experience of quitting Fortune magazine right before COVID hit. A key theme emerges: resilience isn't about avoiding difficulty, but about training yourself to handle it through small daily practices.
Former Navy SEAL David Goggins calls this "callusing the mind." By deliberately doing one uncomfortable thing each day - whether that's running in the rain or having a difficult conversation - you build your capacity to handle larger challenges. The goal isn't to become superhuman, but to expand your comfort zone step by step.
Other topics include:
- How immigrant experiences shape risk perception
- The shift from institutional to individual trust in media
- Reframing "failure" as redirection
- Building competence as an antidote to fear
- Finding signal in the noise of information overload
Enjoy the conversation!
For more information, visit the show notes at https://affordanything.com/episode567
Resources:
James Clear Episode 156: https://affordanything.com/156-how-to-build-incredible-habits-with-james-clear/
Annie Duke Episode 281: https://affordanything.com/281-the-art-of-decision-making-with-annie-duke/
Annie Duke Episode 424: https://affordanything.com/424-the-power-of-knowing-when-to-walk-away-with-annie-duke/
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1:04:45
Q&A: Breaking Up with Total Market Funds After 10 Years
Jackie is sold on Paul Merriman’s “Four Funds” approach, but she’s overwhelmed by the logistics of diversifying her single fund portfolio.. What are the best practices to redistribute her investments, handle taxes, and manage rebalancing?
Heidi’s mother recently passed and she’s struggling to decide between distribution options, their tax implications, and investment options for the annuity she inherited.
An anonymous caller and her husband want to buy a second home, pay for their children’s college, buy a car in cash, travel well, and save $3 to $4 million for retirement. How do they prioritize and manage their competing goals?
Former financial planner Joe Saul-Sehy and I tackle these three questions in today’s episode.
Enjoy!
P.S. Got a question? Leave it at https://affordanything.com/voicemail
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1:22:33
Codie Sanchez: From Wall Street to Washing Machines
#565: When Codie Sanchez worked in finance, she wasn't planning to buy a laundromat. But facing 60-70 hour workweeks and realizing she didn't want her boss's job, she started looking for an exit strategy. Instead of buying a fancy car during her "midlife crisis," she purchased that first laundromat - a decision that would lead her to acquire multiple laundromats, car washes, and other local businesses.
Codie joins us to break down how regular people can buy and run profitable local businesses, even without previous ownership experience. These "Main Street" businesses - think laundromats, car washes, landscaping companies, and other local services - often generate steady cash flow without requiring complex technology or massive scale.
She shares eye-opening stats about business ownership in America: while 80 percent of Americans owned a business in the 1800s, today that number has dropped to just 6 percent. Meanwhile, private equity firms have increased their ownership of small businesses from 4 percent in 2000 to 20 percent by 2020.
But there's good news for aspiring business owners. Codie breaks down 21 different ways to finance a business acquisition, from seller financing to equipment loans. She explains that 60 percent of businesses sell with some form of seller financing, making ownership more accessible than many realize.
Want to avoid common pitfalls? Codie introduces her RICH framework:
- Research: Define what type of business fits your goals and skills
- Invest: Get skin in the game, but never risk bankruptcy
- Command: Use systems and metrics to avoid accidentally buying yourself a job
- Harness: Build toward bigger goals if desired
She emphasizes starting small — master one business before attempting to build an empire. A successful acquisition requires understanding the "roadmap to making money" - the 5-7 key steps that drive profit in any business.
The numbers tell an encouraging story: while 90 percent of startups fail within 10 years, small business acquisitions have a 75-95 percent success rate. Codie attributes this to buying proven business models rather than starting from scratch.
Perhaps most importantly, she challenges the notion that "boring" businesses can't generate serious wealth. From a roofing company founder becoming one of the world's wealthiest women to a garbage collection entrepreneur building a billion-dollar enterprise, Main Street businesses have created numerous millionaires and billionaires.
Want to learn more? Check out Main Street Millionaire.
For more information, visit the show notes at https://affordanything.com/episode565
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1:47:01
The Real Story Behind These New Tariffs
#564: Our economy just gave us two big surprises that shape how we'll do business and invest in 2025.
Our job market is going through major changes. Sure, we added 227,000 jobs - way more than anyone expected. Healthcare and hospitality are booming. But here's what you need to watch: our unemployment rate just climbed to 4.2%. When you look at how many people are joining or leaving the workforce, you'll spot some interesting signals about where we're headed.
You've probably heard about these new trade proposals making waves. They're targeting our biggest trading partners - Mexico, Canada, and China. Let's talk about what tariffs really mean for your wallet. Some industries win, others lose. Your grocery bill? That might change. Your job prospects? That depends on your industry. We'll help you connect these dots.
This matters because you need to know how these shifts affect your money, your job, and your business decisions. Our markets are changing. Our policies are evolving. But when you understand what's happening, you can make smarter moves.
Join us as we break down these economic changes into practical insights you can actually use.
For more information, visit the show notes at https://affordanything.com/episode564
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54:37
What the Crypto Shift Means for Your Money, with Tatiana Koffman
#563: Bitcoin is hitting new all-time highs. Is this just another bull cycle, or are we witnessing a fundamental shift in how the world thinks about money?
That's the question at the heart of our conversation with Tatiana Koffman, General Partner at Moonwalker Capital and author of "The Myth of Money."
Koffman joins us to explain why Bitcoin might be considered "digital property" rather than just a currency. She breaks down how Bitcoin derives its value from mathematical scarcity – similar to how gold becomes harder to mine over time, Bitcoin becomes more difficult and expensive to create every four years through events called "halvings."
The conversation moves through several key developments in cryptocurrency. We discuss the recent approval of Bitcoin ETFs and how traditional financial institutions like JPMorgan Chase (whose CEO Jamie Dimon once openly criticized crypto) are now embracing these products. Koffman shares insights about crypto adoption worldwide, from El Salvador's experiment with Bitcoin as legal tender to Dubai's emergence as a crypto hub.
When discussing Africa's cryptocurrency landscape, Koffman explains how Nigeria's unstable banking system has driven crypto adoption, with many young people using decentralized exchanges to participate in global markets. She describes how some Nigerians have built significant wealth starting from nothing, using "airdrops" (free tokens given to early adopters) to begin trading.
The interview includes a debate about inflation rates and economic data reporting, with Koffman expressing skepticism about official figures, while I push back on claims made without supporting evidence.
Koffman also explains different categories of crypto investments, distinguishing between Bitcoin as a potential store of value and what she calls "meme coins" – speculative assets she compares to gambling. She provides context about stable coins, particularly USDC and Tether, and their role during the Silicon Valley Bank collapse.
For those interested in investing in cryptocurrency, Koffman suggests starting with exposure to Bitcoin through regulated platforms like Coinbase or ETFs, while emphasizing the importance of proper security measures. She explains concepts like "cold wallets" and "seed phrases," comparing them to different levels of bank security.
Looking ahead, Koffman discusses cryptocurrency's potential role in reducing dependence on the U.S. dollar, particularly in developing economies, while acknowledging the challenges of creating stable alternative currencies.
Find Koffman's weekly newsletter at mythofmoney.com or follow her on Twitter and Instagram @TatianaKoffman
For more information, visit the show notes at https://affordanything.com/episode563
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You can afford anything, but not everything. We make daily decisions about how to spend money, time, energy, focus and attention – and ultimately, our life.
How do we make smarter decisions? How do we think from first principles?
On the surface, Afford Anything seems like a podcast about money and investing.
But under the hood, this is a show about how to think critically, recognize our behavioral blind spots, and make smarter choices. We’re into the psychology of money, and we love metacognition: thinking about how to think.
In some episodes, we interview world-class experts: professors, researchers, scientists, authors. In other episodes, we answer your questions, talking through decision-making frameworks and mental models.
Want to learn more? Download our free book, Escape, at http://affordanything.com/escape. Hosted by Paula Pant.
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