Does Nassim Taleb say anything about buying a house with a mortage?
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Nassim Taleb has discussed the implications of buying a house with a mortgage. He emphasizes the fragility that comes with having a mortgage, noting that it makes individuals "prisoners of the system." Taleb argues that those with a mortgage often underestimate the duration of their employment and fear their bosses more, which can lead to a more fragile and dependent life. He advocates for financial robustness, suggesting that having money on the side and avoiding debt increases one's independence and reduces reliance on a potentially volatile job market 1 2 3.
RELATED QUESTIONSWhat does Taleb recommend for buying a house?
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Nassim Taleb has shared several thoughts on buying a house. His central recommendation revolves around avoiding debt to maintain financial robustness. Taleb strongly believes that having a mortgage makes individuals "prisoners of the system," leading to increased dependency on their jobs and making them more fragile. He suggests that people should avoid borrowing money and instead focus on saving, which provides a financial cushion and reduces reliance on unpredictable employment situations 1.
He acknowledges that owning a home can make you more fragile than renting, particularly if you have a mortgage. Taleb emphasizes the importance of financial independence, recommending that having money on the side is crucial for robustness 1. This advice aligns with his broader philosophy of minimizing downside risk and increasing one's resilience to unexpected adverse events.
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