How to Lose Time and Money

Paul Graham’s essay How to Lose Time and Money explores how fortunes and productive time are lost—not through obvious self-indulgence, but through deceptive activities that masquerade as virtue.

On Money

Most people assume wealth disappears through lavish spending. But “the way most fortunes are lost is not through excessive expenditure, but through bad investments.”

Extravagant purchases trigger psychological alarms, whereas investments bypass them. Trading derivatives or risky ventures can drain substantial wealth quickly without triggering guilt.

On Time

The most insidious time-waster isn’t leisure but “fake work”—activities like processing email that feel productive because they’re desk-based and uncomfortable.

Unlike watching television all day, which triggers immediate discomfort, fake work produces minimal guilt despite yielding nothing.

Graham notes he’s had “days at the end of which, if I asked myself what I got done that day, the answer would be: basically, nothing.”

The Broader Pattern

Both time and money losses share a common mechanism: modern dangers circumvent our natural protective instincts by mimicking legitimate activities.

“The most dangerous traps now are new behaviors that bypass our alarms about self-indulgence by mimicking more virtuous types.”

My Takeaway

Develop new awareness systems to recognize these deceptive time and money drains. Ask: did I actually accomplish anything, or did I just feel busy?

What fake work traps you? I’d love to hear at persdre@gmail.com.