Hmm I actually think there might be a psychologically optimal idea close to this.
Let’s say you expect to earn $200k/yr for the next 10 years and you want to donate 10% of your income to charity, which is $20k/yr over 10 years, which has a net present value of about $100k. Sell someone an Income Share Agreement (ISA) for $100k which you donate now, then pay the ISA 10% of your income for 10 years.
This could be, like you say, a good commitment mechanism for your present self to get the upper hand over your future self. The ISA protects the downside risk of having a loan you can’t pay if your income unexpectedly decreases.
Hmm I actually think there might be a psychologically optimal idea close to this.
Let’s say you expect to earn $200k/yr for the next 10 years and you want to donate 10% of your income to charity, which is $20k/yr over 10 years, which has a net present value of about $100k. Sell someone an Income Share Agreement (ISA) for $100k which you donate now, then pay the ISA 10% of your income for 10 years.
This could be, like you say, a good commitment mechanism for your present self to get the upper hand over your future self. The ISA protects the downside risk of having a loan you can’t pay if your income unexpectedly decreases.