---
aliases: ["Personal Finance & Investing"]
Is A: Topic
---
# Personal Finance & Investing

Personal finance and investing covers the principles and practices of managing money for long-term wealth building — index fund investing, portfolio allocation, savings discipline, tax optimization, and the philosophical underpinnings of financial independence. The approach is rooted in simplicity, low costs, and patience.

## Why this matters

Financial independence is what makes it possible to run Refactoring without taking VC money or making desperate compromises for revenue. A high savings rate and a boring investment portfolio create the runway and psychological safety to make long-term decisions in the business. The evergreen notes [[index-funds-and-intellectual-humility]] and [[investing-in-yourself-vs-markets]] capture two complementary ideas: most people should stick to index funds, and the best investment for an indie founder is often putting money back into the business. This topic also connects directly to [[responsibility-personal-finance]], where the operational side lives.

## Key resources

- [[index-funds-and-intellectual-humility]] — why passive investing is both financially and intellectually sound
- [[investing-in-yourself-vs-markets]] — the case for self-investment as the highest-returning asset class
- [[note-thinking-fast-and-slow]] — Kahneman's work on cognitive biases is essential reading for any investor
- "The Simple Path to Wealth" by JL Collins — the most practical guide to index fund investing
- Ben Felix's YouTube channel and podcast — evidence-based investing advice, no hype

## Notes

- The single most important financial decision for an indie founder is keeping a high savings rate — it buys time, options, and peace of mind
- Index fund investing works precisely because it requires no skill, no market timing, and no emotional decision-making — which is exactly what makes it psychologically difficult
- The Italian tax system adds complexity to investment decisions, especially around capital gains and the differences between ETFs domiciled in various jurisdictions
- Financial independence is not about retiring early — it is about reaching the point where work is a choice rather than a necessity, which changes every decision for the better
- Writing about personal finance for the newsletter audience is tricky because income levels vary enormously, but the principles (save more, invest simply, be patient) are universal
