Sorry that “Best Reads” is a little late today. The only reason for this is because I got lazy yesterday.

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How Much Should I Save? (The Aleph Blog)

Economists say this is the minimum amount of money you need in an emergency fund ( CNBC)

Two very different articles on how much savings you should have. One (the Aleph Blog one) takes a more principles-based approach while the other takes a more data-driven approach.

As much as I love economists, I would go with the principles-based one as it seems to be more useful in the long-run. The economists’ approach is particularly useful if you’re knee-deep in debt and thinking that there’s no way out. Then, taking small, easy steps might be the better approach as the problem won’t seem too insurmountable.

When Performance Leads Assets (A Wealth of Common Sense)

Classic fallacy of composition. We actually teach this to 17 year olds in my school but I suspect this is one lesson that most of them will forget six months after learning it.

Money Blinders (Of Dollars and Data)

I wasn’t going to link to this at first but then the first part of the post made me remember that there’s this recent case in Singapore where there’s been a lot of public backlash over the lenient sentencing of a university student because one of the considerations from the judge was that the student has “a bright future” (link here).

Post in the link brings up a lot of good points about how greed and money can blind people to serious issues and I guess the point I’m making is that if left unchecked or too lenient, small mistakes can eventually evolve into larger ones.

Dividends *Can* Lie (The Aleph Blog)

This one is for them dividend lovers (and there are plenty in Singapore). Not a very technical piece but just to bring awareness that dividends may not be sustainable.