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Only spend the second derivative
Last discussed Oct 16, 2026
A personal finance rule: invest your income and spend only the returns generated by those investments, never the principal.
Recently discussed in
the 6 traits of people who can’t stop making money
Shaan Puri · Oct 16, 2026
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Shaan Puri
mentioned
Used for: Controlling lifestyle spending so you never go broke
Praised: Compounds over time so that after five to seven years you can live off invest...
vs: Sam compares it to his own rule of spending under 3% of liquid net worth
"You only spend the second derivative... If you make 100 grand, that's not the pool you can spend from. You now invest the hundred grand, and whatever the hundred grand is making you, that's what you get to spend. That's your you'll-never-go-broke ..."
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