Jesse reads an excerpt from the book The End of Average by Todd Rose. In the late 1940's the Air Force had a dangerous problem on its hands -- aircraft of all kinds were malfunctioning and crashing at alarming rates. The Air Force brought in scientist Lt Gilbert S Daniels to diagnose the problem. Daniels discovered that the Air Force had designed cockpits based on thousands of physical measurements taken from its ranks of pilots, then averaged. Daniels ascertained that despite the rigor and breadth of the measurements, not a single active pilot in the Air Force actually matched up with all the averages. In short, the Air Force had designed their planes around an average pilot that didn't actually exist, causing pilots to have trouble controlling their planes.
We can take a lesson from Lt. Daniels discovery when it comes to our budgets. It's tempting to come up with an average for each line item, and compare your budget to someone else's or perhaps even a regional or national "average." Designing your budget around averages may not actually fit your life, and, going back to Episode 420, may leave your budget rigid and inflexible.
Sign up for a free 34-day trial of YNAB at www.youneedabudget.com
Behind the Scenes: A Random Chat with the YNAB Team
How to Talk to Your Kids About Money with Anne-Lyse Wealth
Behind the Scenes: Personal Finance Tips from the YNAB Team
Back to School, Back to Budgeting
Behind the Scenes: The YNAB Team Shares Their Very Best Budgeting Advice
Meet the Man with All the Hacks! Chris Hutchins
Behind the Scenes: Working at YNAB
EP10 Money Stories: How Tristan Pursued His Art Dreams and Paid off $80k of Student Debt
Behind the Scenes: Budgeting with a Partner
Mom and Dad, We Need to Talk: Money and End-of-Life Care with Cameron Huddleston
Behind the Scenes: What's The Budget Done for You Lately?
Meet Your Guide to the Student Loan Jungle: Travis Hornsby (Student Loan Planner)
Behind the Scenes: YNAB Employees Tell Their Debt Stories
James Clear: Building Good Habits and Breaking Bad Ones
Dear College Student
Hannah Cole: Simplifying Taxes for Artists and Creative Professionals
You're Broke and Winning
A New Way to Pay for College? David Stackpole's Unique Strategy
EP09 Money Stories: Carol Kissinger Was "Bad At Money," Until She Found YNAB
How to Be a Financial Grownup with Bobbi Rebell
Create your
podcast in
minutes
It is Free
We Study Billionaires - The Investor’s Podcast Network
Money Girl
So Money with Farnoosh Torabi
Money Tree Investing
The Disciplined Investor