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A New Way to Think About Your Money | William MacAskill

Aug 22, 2022 1h 4m 26 insights
<p><em>New episodes come out every Monday, Wednesday, and Friday for free, with 1-week early access for Wondery+ subscribers.</em></p> <p><em>---</em></p> <p><br /></p> <p>Most of us worry about money sometimes, but what if we changed the way we thought about our relationship to finances? Today's guest, William MacAskill, offers a framework in which to do just that. He calls it effective altruism. One of the core arguments of effective altruism is that we all ought to consider giving away a significant chunk of our income because we know, to a mathematical near certainty, that several thousand dollars could save a life.</p> <p><br /></p> <p>Today we're going to talk about the whys and wherefores of effective altruism. This includes how to get started on a very manageable and doable level (which does not require you to give away most of your income), and the benefits this practice has on both the world and your own psyche.</p> <p><br /></p> <p>MacAskill is an associate professor of philosophy at Oxford University and one of the founders of the effective altruism movement. He has a new book out called, <a href="https://bookshop.org/books/what-we-owe-the-future/9781541618626" rel="noopener noreferrer" target="_blank"><em>What We Owe the Future</em></a><em>,</em> where he makes a case for longtermism, a term used to describe developing the mental habit of thinking about the welfare of future generations. </p> <p><br /></p> <p><strong>In this episode we talk about:</strong> </p> <p><br /></p> <ul> <li>Effective altruism</li> <li>Whether humans are really wired to consider future generations</li> <li>Practical tips for thinking and acting on longtermism</li> <li>His argument for having children</li> <li>And his somewhat surprising take on how good our future could be if we play our cards right</li> </ul> <p><br /></p> <p><br /></p> <p><em>Podcast listeners can get 50% off</em> <a href="https://bookshop.org/books/what-we-owe-the-future/9781541618626" rel="noopener noreferrer" target="_blank"><em>What We Owe the Future</em></a> <em>using the code</em> <strong><em>WWOTF50</em></strong> <em>at</em> <a href="http://bookshop.org/" rel="noopener noreferrer" target="_blank"><em>Bookshop.org</em></a>.</p> <p><br /></p> <p><strong>Full Shownotes:</strong> <a href="https://www.tenpercent.com/podcast-episode/william-macaskill-491" rel="noopener noreferrer" target="_blank">https://www.tenpercent.com/podcast-episode/william-macaskill-491</a></p>
Actionable Insights

1. Consider Giving Significant Income

Reflect on giving away a significant portion of your income, potentially 10% or more, because rigorous research shows a few thousand dollars can save a life with near mathematical certainty.

2. Rearrange Life for Good

Evaluate rearranging your entire life and career, including altering your profession, to actively implement the principle of doing the most good possible.

3. Give for Personal Happiness

Engage in financial giving, as it can make you a happier person and lead to a positive net impact on your well-being, more so than spending on luxury goods.

4. Donate for Deep Reassurance

Make donations to effective charities, as the abstract awareness of saving lives can provide deep reassurance, leading to a more holistic peace and meaning in life.

5. Develop Future Generations Habit

Cultivate the mental habit of considering the welfare of future generations in your thinking, as this practice is beneficial for both the species and your personal well-being right now.

6. Adopt Action-Oriented Mindset

Cultivate an action-oriented mindset by focusing on what you can do to improve situations, rather than dwelling on how bad things are, whether in your personal life or the world.

7. Envision Wonderful Future

Actively envision how wonderfully good the future could be if humanity makes the right choices, reflecting on peak personal experiences as a motivating force for positive change.

8. Prioritize Cultural Change

Prioritize fostering cultural change regarding long-term thinking, as robust political and institutional changes depend on genuine public concern for future generations.

9. Start Giving Early Career

Begin giving early in your career by donating the excess income as your salary increases, as it’s easier to avoid increasing consumption than to reduce it later.

10. Take a Giving Pledge

Consider taking the ‘Try Giving Pledge’ to commit a chosen percentage of your income for a year, or the ‘Giving What We Can 10% Pledge,’ then reflect and gradually increase your giving.

11. Automate Donations

Set up a standing order or direct debit for your chosen donation amount, as this automates the process and requires only one decision.

12. Research Effective Charities

Utilize resources like givewell.org and givingwhatwecan.org to research and identify charities with proven effectiveness and high cost-effectiveness in various cause areas.

13. Consider Direct Cash Transfers

Consider direct cash transfers to the poorest people, as they can best decide how to spend the money to meet their specific needs, often more effectively than prescribed interventions.

14. Prioritize Global Health

Prioritize global health interventions when donating, as the desire to avoid sickness and death from diseases like malaria is a universal human need, ensuring broad impact.

15. Solicit Beneficiary Feedback

Seek direct information from the people you aim to benefit about their needs and preferred trade-offs, ensuring interventions are aligned with their actual desires and not external assumptions.

16. Join Effective Altruism Community

Get involved with the Effective Altruism community to gain social support and rewards, as being part of a group doing good can be encouraging and reassuring.

17. Embrace Low-Material Lifestyle

Consider adopting a lifestyle that doesn’t involve large material expenditures, as there are many ways to have a very enjoyable life without significant spending on possessions.

18. Learn About Long-termism

Deepen your understanding of long-termism and its implications, particularly focusing on neglected or overlooked challenges like engineered pandemics and AI risks, to better inform your actions.

19. Spread Long-termism Arguments

Actively make and spread compelling arguments for why society should care about future generations, as this is a key method for driving cultural change.

20. Use Media for Long-termism

Leverage various media platforms like podcasts, YouTube, movies, and educational initiatives to disseminate long-termist ideas and foster cultural change.

21. Align Career with Long-Termism

Consider making significant career changes to work on the most pressing issues impacting the long-term future, as your time can be even more valuable than money in this domain.

22. Donate for Long-Term Future

Direct your financial donations towards causes that most effectively impact the long-term future, such as those supported by the Long-Term Future Fund at Giving What We Can.

23. Have Children, Raise Well

Consider having children and raising them well, as they can contribute positively to society and become change-makers, while their carbon impact can be effectively offset through targeted donations.

24. Maintain Diverse Worldviews

Actively maintain an openness to diverse moral perspectives and a wide range of worldviews to ensure continued moral progress and prevent the ‘value lock-in’ of potentially suboptimal values.

25. Appreciate Progress, Low Standards

Maintain ’low standards’ by appreciating how far humanity has progressed from historical conditions, which can foster optimism and counteract the unhelpful tendency to focus only on negatives.

26. Use Historical Comparison

Employ historical comparison as a thinking tool; on a bad day, reflect on the significantly worse conditions of past generations to gain perspective and reassurance about your present circumstances.