Even more than the returns on your portfolio. And managing returns is much more difficult. Wealth is simply the difference between what you have and what you want. It’s a two-sided equation, but many people only think about the part where they earn more. This is not bad. Just don’t be fanatical about it. Some people spend an extra 20 hours a week analyzing and choosing the best stocks or even ETFs with a commission one-tenth of a percent lower than the current one, while losing dozens of times that difference on wine, restaurants, and maintaining an expensive car. However, it’s much more efficient to simply switch to a Toyota.

Today’s market turbulence is a reminder of the importance of financial prudence. As portfolios take a hit, it’s worth reflecting on the fundamentals of wealth: knowing the balance between what you have and what you desire. In volatile times like these, it is crucial to focus on what you can control – like your spending habits -rather than getting caught up in the elusive pursuit of outsmarting market swings. As markets fall, remember the wisdom from Taleb’s first and best book, “Fooled by Randomness,” where he talks about Nero Tulip: “He did not depend on a bull market, so a bear market did not bother him much.”