# What Is the Difference Between Microeconomics and Macroeconomics?

Published: 2025-12-25
Author: Warren Team
URL: https://www.heywarren.com/blog/economics-micro-vs-macro

---
Every time the [Federal Reserve](https://www.federalreserve.gov/) raises interest rates by 0.25%, roughly 8 million American homeowners with variable-rate mortgages watch their monthly payments climb — even though they never attended a single Fed meeting or voted on monetary policy.

That is the invisible thread connecting economics micro vs macro: decisions made at the national level land directly in your wallet, and choices made by millions of individual consumers ripple upward to shape those national decisions.

Most people treat microeconomics and macroeconomics as two separate subjects — one "small," one "big," and never quite touching. That mental model creates real financial blind spots. When you don't see how they connect, you misread job markets, misunderstand inflation, and miss opportunities hiding in plain sight.

By the end of this guide, you will be able to define both branches clearly, identify the questions each one answers, and see how micro and macro economics work together in practice. You will also understand why investors, policymakers, and financial advisors track both simultaneously.

According to the [Bureau of Economic Analysis](https://www.bea.gov/), U.S. GDP exceeded $27 trillion in 2023 — a number built entirely from trillions of individual transactions between everyday buyers and sellers.

## What Is the Difference Between Microeconomics and Macroeconomics?

**Economics micro vs macro** refers to the two main branches of economic analysis. **Microeconomics** studies the behavior of individual consumers, firms, and markets — the "zoom in" view. **Macroeconomics** studies the economy as a whole — GDP, unemployment, inflation, and national policy. Both branches use the same core tools but answer different questions at different scales.

![Microeconomics and macroeconomics share the same foundation but answer questions at different scales.](data:image/svg+xml,%3Csvg%20xmlns%3D%22http%3A%2F%2Fwww.w3.org%2F2000%2Fsvg%22%20viewBox%3D%220%200%20600%20211%22%20width%3D%22600%22%20height%3D%22211%22%20role%3D%22img%22%3E%3Ctitle%3EHierarchy%3C%2Ftitle%3E%3Crect%20width%3D%22100%25%22%20height%3D%22100%25%22%20fill%3D%22%23f8fafc%22%2F%3E%3Crect%20x%3D%22220%22%20y%3D%2220%22%20width%3D%22160%22%20height%3D%2258%22%20rx%3D%228%22%20fill%3D%22%232563eb%22%2F%3E%3Ctext%20x%3D%22300%22%20y%3D%2254%22%20text-anchor%3D%22middle%22%20font-family%3D%22system-ui%2C-apple-system%2Csans-serif%22%20font-size%3D%2214%22%20font-weight%3D%22700%22%20fill%3D%22white%22%3EEconomics%3C%2Ftext%3E%3Cpath%20d%3D%22M%20300%2078%20L%20300%20105.5%20L%20210%20105.5%20L%20210%20133%22%20stroke%3D%22%23cbd5e1%22%20stroke-width%3D%222%22%20fill%3D%22none%22%2F%3E%3Crect%20x%3D%22130%22%20y%3D%22133%22%20width%3D%22160%22%20height%3D%2258%22%20rx%3D%228%22%20fill%3D%22white%22%20stroke%3D%22%230891b2%22%20stroke-width%3D%222%22%2F%3E%3Ctext%20x%3D%22210%22%20y%3D%22158%22%20text-anchor%3D%22middle%22%20font-family%3D%22system-ui%2C-apple-system%2Csans-serif%22%20font-size%3D%2213%22%20font-weight%3D%22600%22%20fill%3D%22%230f172a%22%3EMicroeconomics%3C%2Ftext%3E%3Ctext%20x%3D%22210%22%20y%3D%22176%22%20text-anchor%3D%22middle%22%20font-family%3D%22system-ui%2C-apple-system%2Csans-serif%22%20font-size%3D%2210%22%20fill%3D%22%2364748b%22%3EFirms%2C%20consumers%2C%20markets%3C%2Ftext%3E%3Cpath%20d%3D%22M%20300%2078%20L%20300%20105.5%20L%20390%20105.5%20L%20390%20133%22%20stroke%3D%22%23cbd5e1%22%20stroke-width%3D%222%22%20fill%3D%22none%22%2F%3E%3Crect%20x%3D%22310%22%20y%3D%22133%22%20width%3D%22160%22%20height%3D%2258%22%20rx%3D%228%22%20fill%3D%22white%22%20stroke%3D%22%230891b2%22%20stroke-width%3D%222%22%2F%3E%3Ctext%20x%3D%22390%22%20y%3D%22158%22%20text-anchor%3D%22middle%22%20font-family%3D%22system-ui%2C-apple-system%2Csans-serif%22%20font-size%3D%2213%22%20font-weight%3D%22600%22%20fill%3D%22%230f172a%22%3EMacroeconomics%3C%2Ftext%3E%3Ctext%20x%3D%22390%22%20y%3D%22176%22%20text-anchor%3D%22middle%22%20font-family%3D%22system-ui%2C-apple-system%2Csans-serif%22%20font-size%3D%2210%22%20fill%3D%22%2364748b%22%3EGDP%2C%20inflation%2C%20policy%3C%2Ftext%3E%3C%2Fsvg%3E)

*Microeconomics and macroeconomics share the same foundation but answer questions at different scales.*

Think of it this way: microeconomics is the individual tree; macroeconomics is the forest. A microeconomist might study why Starbucks can charge $7 for a latte in Manhattan but only $5 in rural Ohio. A macroeconomist asks why the entire U.S. economy grew 2.5% last year and what that means for employment across all industries.

The two branches share a common foundation: people and organizations respond to **incentives**, make decisions under **scarcity**, and interact through **markets**. But the questions they address diverge sharply.

Microeconomics focuses on:
- How one firm sets its prices
- Why a consumer chooses one product over another
- How wages are determined in a specific labor market
- Whether a local housing market is in equilibrium

Macroeconomics focuses on:
- What drives national economic growth
- How central banks control inflation
- Why unemployment rises during recessions
- How government spending affects the broader economy

Neither branch is more important than the other. Together, they give you a complete picture of how economic forces shape daily life — from the price of groceries to your job security to the return on your retirement savings.

## Core Concepts in Microeconomics

Microeconomics uses a precise set of tools to explain how individuals and firms make decisions. These concepts appear in every well-functioning market — real estate, healthcare, labor, digital advertising — and mastering them gives you a framework for analyzing price behavior and competitive dynamics anywhere.

### Supply and Demand

**Supply and demand** is the bedrock of microeconomic analysis. The law of demand states that as price rises, [quantity demanded](/blog/quantity-demanded) falls (all else equal). The law of supply states that as price rises, producers are willing to supply more. Where the two curves intersect, you find the **[equilibrium price](/blog/equilibrium-price)** — the price that clears the market.

Real-world example: in 2021, semiconductor shortages drove up prices for new cars by an average of $6,000 above MSRP. Supply had dropped; demand had not. Microeconomic theory predicted the price spike before it fully materialized in dealer showrooms.

### Price Elasticity

**Price elasticity of demand** measures how sensitive consumers are to price changes. If a 10% price hike cuts sales by 20%, demand is **elastic** — consumers have good substitutes. If that same 10% hike cuts sales by only 2%, demand is **inelastic** — consumers need the product regardless of cost.

Gasoline is famously inelastic in the short run: most drivers pay higher pump prices rather than immediately buying a new electric vehicle. Luxury handbags show high elasticity in some segments — a significant price jump shifts buyers toward competitor brands quickly.

### Market Structures

Not all markets work the same way. Microeconomics identifies four main structures:

1. **[Perfect competition](/blog/perfect-market-competition-examples)** — many sellers, identical products, no individual pricing power (e.g., wheat farming)
2. **Monopolistic competition** — many sellers, differentiated products (e.g., restaurants)
3. **Oligopoly** — a few large sellers dominate pricing (e.g., airlines, wireless carriers)
4. **Monopoly** — one seller controls the entire market (e.g., a regulated utility)

Market structure directly affects prices, innovation rates, and consumer welfare. Understanding where an industry sits on this spectrum helps investors evaluate profit margins and long-term pricing power before committing capital.

## Core Concepts in Macroeconomics

Macroeconomics operates at a different altitude. It asks how the sum of millions of individual decisions produces national-level outcomes — and how policy levers can steer those outcomes in deliberate directions.

### Gross Domestic Product (GDP)

**GDP** is the total market value of all goods and services produced in a country during a given period. It is the most widely used measure of economic size and health. The U.S. Bureau of Economic Analysis reports GDP quarterly, and two consecutive negative readings signal a **recession** by the standard definition.

GDP growth of 2–3% annually is considered healthy for a mature economy like the United States. Growth below 1% signals stagnation; growth above 4% can trigger inflationary pressures as demand outpaces productive capacity.

### Inflation and Interest Rates

**Inflation** measures the rate at which prices across the economy rise over time. The Federal Reserve targets 2% annual inflation as an ideal balance between growth and stability. When inflation runs hot — as it did in June 2022, hitting 9.1% by CPI — the Fed raises the **federal funds rate** to cool borrowing and spending.

Interest rates are the primary policy lever in modern macroeconomics. Higher rates make loans more expensive, slowing business investment and consumer purchases. Within 12–18 months, this cooling effect typically brings inflation down — but it also slows job growth and reduces asset valuations.

### Fiscal and Monetary Policy

**Monetary policy** is controlled by central banks (the Federal Reserve in the U.S.) through interest rates and the money supply. **Fiscal policy** is controlled by Congress and the White House through government spending and taxation.

The 2020 CARES Act — which injected $2.2 trillion into the U.S. economy — is a classic example of expansionary fiscal policy. The Fed's subsequent rate hikes from 2022 to 2023 (lifting rates from 0.25% to 5.5%) represent [contractionary monetary policy](/blog/contractionary-monetary-policy) designed to offset the inflationary effects of that stimulus. Both tools were deployed simultaneously, pulling in opposite directions.

## How Micro and Macro Economics Work Together

The micro and macro distinction is analytical, not a feature of reality. In the actual economy, every macroeconomic trend is the aggregate of millions of microeconomic decisions — and macro conditions set the environment in which micro-level choices play out.

Consider the 2008 financial crisis. At the macro level, GDP fell 4.3%, unemployment hit 10%, and credit markets froze. But at the micro level, the crisis began with individual mortgage officers approving loans to unqualified borrowers, individual homebuyers accepting adjustable-rate terms they didn't fully understand, and individual investment banks packaging those risky mortgages into complex securities. Micro decisions created the macro catastrophe.

The reverse is equally true. When the Fed cut rates to near zero in 2009, that macro decision changed the micro calculus for millions of businesses. Borrowing became cheap, venture capital flowed more freely, and startup formation surged. Airbnb, Uber, and Slack were all founded or scaled during that low-rate environment — a direct macro-to-micro transmission.

**The fallacy of composition** illustrates why these two lenses can't be collapsed into one. What works for a single firm doesn't always scale to all firms simultaneously. An individual company that cuts wages might save money and stay competitive. But if every company cuts wages at once, consumer spending falls — and revenue drops across the entire economy. Micro logic doesn't always produce macro logic when aggregated.

For investors and anyone managing personal finances, tracking both lenses is essential. The macroeconomic environment determines the cost of capital, the availability of jobs, and the direction of broad asset prices. Microeconomic analysis tells you which specific companies, sectors, or assets will outperform within that macro context.

## Real-World Examples of Economics Micro vs Macro in Action

Seeing **economics micro vs macro** side by side through real cases makes both concepts stick — and reveals how professionals use them together to reach better decisions.

**The Housing Market (2022–2024)**

At the macro level, rising interest rates cooled the U.S. housing market sharply. Mortgage applications fell more than 50% from their 2021 peak, and national home price growth slowed to near zero. That is the macro story.

At the micro level, individual markets diverged dramatically. Prices in Austin, Texas fell roughly 15% peak-to-trough as overbuilding met reduced demand. Meanwhile, prices in many Midwest cities held flat or even rose slightly, because local supply constraints outweighed the national rate effect. Macro set the tide; micro explained which boats rose or sank.

**The Labor Market**

Macroeconomics tracks the national unemployment rate — 3.7% as of late 2023, near historic lows. Microeconomics explains why software engineers in San Francisco still commanded $180,000–$220,000 base salaries while retail workers in mid-sized cities struggled to find full-time hours. Two entirely different labor market dynamics were operating simultaneously inside that single national statistic.

**Inflation and Individual Businesses**

During the 2021–2023 inflationary period, macro data showed consumer prices rising 5–9% annually. But microeconomic analysis revealed that restaurant menus increased prices 8–12% on average, while electronics prices actually fell due to supply chain normalization. The macro number masked a wide range of micro-level price behavior — which is exactly why sector-level analysis matters.

## Why Economics Micro vs Macro Matters for Your Personal Finances

The split between microeconomics and macroeconomics has direct, measurable implications for investment decisions, career planning, and everyday budgeting — not just for economists and policymakers.

![How microeconomic and macroeconomic analysis apply across personal and policy decisions.](data:image/svg+xml,%3Csvg%20xmlns%3D%22http%3A%2F%2Fwww.w3.org%2F2000%2Fsvg%22%20viewBox%3D%220%200%20720%20480%22%20width%3D%22720%22%20height%3D%22480%22%20role%3D%22img%22%3E%3Ctitle%3EQuadrant%20matrix%3C%2Ftitle%3E%3Crect%20width%3D%22100%25%22%20height%3D%22100%25%22%20fill%3D%22%23f8fafc%22%2F%3E%3Crect%20x%3D%2290%22%20y%3D%2225%22%20width%3D%22300%22%20height%3D%22190%22%20fill%3D%22%23dbeafe%22%2F%3E%3Crect%20x%3D%22390%22%20y%3D%2225%22%20width%3D%22300%22%20height%3D%22190%22%20fill%3D%22%23d1fae5%22%2F%3E%3Crect%20x%3D%2290%22%20y%3D%22215%22%20width%3D%22300%22%20height%3D%22190%22%20fill%3D%22%23ffedd5%22%2F%3E%3Crect%20x%3D%22390%22%20y%3D%22215%22%20width%3D%22300%22%20height%3D%22190%22%20fill%3D%22%23ede9fe%22%2F%3E%3Cline%20x1%3D%2290%22%20y1%3D%22215%22%20x2%3D%22690%22%20y2%3D%22215%22%20stroke%3D%22%2364748b%22%20stroke-width%3D%222%22%2F%3E%3Cline%20x1%3D%22390%22%20y1%3D%2225%22%20x2%3D%22390%22%20y2%3D%22405%22%20stroke%3D%22%2364748b%22%20stroke-width%3D%222%22%2F%3E%3Ctext%20x%3D%22240%22%20y%3D%22100%22%20text-anchor%3D%22middle%22%20font-family%3D%22system-ui%2C-apple-system%2Csans-serif%22%20font-size%3D%2213%22%20font-weight%3D%22700%22%20fill%3D%22%230f172a%22%3EBudgeting%3C%2Ftext%3E%3Ctext%20x%3D%22240%22%20y%3D%22120%22%20text-anchor%3D%22middle%22%20font-family%3D%22system-ui%2C-apple-system%2Csans-serif%22%20font-size%3D%2210%22%20fill%3D%22%2364748b%22%3E%E2%80%A2%20Monthly%20expenses%3C%2Ftext%3E%3Ctext%20x%3D%22240%22%20y%3D%22136%22%20text-anchor%3D%22middle%22%20font-family%3D%22system-ui%2C-apple-system%2Csans-serif%22%20font-size%3D%2210%22%20fill%3D%22%2364748b%22%3E%E2%80%A2%20Debt%20payments%3C%2Ftext%3E%3Ctext%20x%3D%22540%22%20y%3D%22100%22%20text-anchor%3D%22middle%22%20font-family%3D%22system-ui%2C-apple-system%2Csans-serif%22%20font-size%3D%2213%22%20font-weight%3D%22700%22%20fill%3D%22%230f172a%22%3ECareer%20Planning%3C%2Ftext%3E%3Ctext%20x%3D%22540%22%20y%3D%22120%22%20text-anchor%3D%22middle%22%20font-family%3D%22system-ui%2C-apple-system%2Csans-serif%22%20font-size%3D%2210%22%20fill%3D%22%2364748b%22%3E%E2%80%A2%20Job%20market%20trends%3C%2Ftext%3E%3Ctext%20x%3D%22540%22%20y%3D%22136%22%20text-anchor%3D%22middle%22%20font-family%3D%22system-ui%2C-apple-system%2Csans-serif%22%20font-size%3D%2210%22%20fill%3D%22%2364748b%22%3E%E2%80%A2%20Sector%20outlook%3C%2Ftext%3E%3Ctext%20x%3D%22240%22%20y%3D%22290%22%20text-anchor%3D%22middle%22%20font-family%3D%22system-ui%2C-apple-system%2Csans-serif%22%20font-size%3D%2213%22%20font-weight%3D%22700%22%20fill%3D%22%230f172a%22%3EPurchase%20Decision%3C%2Ftext%3E%3Ctext%20x%3D%22240%22%20y%3D%22310%22%20text-anchor%3D%22middle%22%20font-family%3D%22system-ui%2C-apple-system%2Csans-serif%22%20font-size%3D%2210%22%20fill%3D%22%2364748b%22%3E%E2%80%A2%20Price%20comparison%3C%2Ftext%3E%3Ctext%20x%3D%22240%22%20y%3D%22326%22%20text-anchor%3D%22middle%22%20font-family%3D%22system-ui%2C-apple-system%2Csans-serif%22%20font-size%3D%2210%22%20fill%3D%22%2364748b%22%3E%E2%80%A2%20Product%20choice%3C%2Ftext%3E%3Ctext%20x%3D%22540%22%20y%3D%22290%22%20text-anchor%3D%22middle%22%20font-family%3D%22system-ui%2C-apple-system%2Csans-serif%22%20font-size%3D%2213%22%20font-weight%3D%22700%22%20fill%3D%22%230f172a%22%3EPortfolio%20Strategy%3C%2Ftext%3E%3Ctext%20x%3D%22540%22%20y%3D%22310%22%20text-anchor%3D%22middle%22%20font-family%3D%22system-ui%2C-apple-system%2Csans-serif%22%20font-size%3D%2210%22%20fill%3D%22%2364748b%22%3E%E2%80%A2%20Rate%20cycle%3C%2Ftext%3E%3Ctext%20x%3D%22540%22%20y%3D%22326%22%20text-anchor%3D%22middle%22%20font-family%3D%22system-ui%2C-apple-system%2Csans-serif%22%20font-size%3D%2210%22%20fill%3D%22%2364748b%22%3E%E2%80%A2%20Asset%20allocation%3C%2Ftext%3E%3Ctext%20x%3D%2290%22%20y%3D%22425%22%20text-anchor%3D%22start%22%20font-family%3D%22system-ui%2C-apple-system%2Csans-serif%22%20font-size%3D%2211%22%20fill%3D%22%2364748b%22%3EMicro%20Focus%3C%2Ftext%3E%3Ctext%20x%3D%22690%22%20y%3D%22425%22%20text-anchor%3D%22end%22%20font-family%3D%22system-ui%2C-apple-system%2Csans-serif%22%20font-size%3D%2211%22%20fill%3D%22%2364748b%22%3EMacro%20Focus%3C%2Ftext%3E%3Ctext%20x%3D%22390%22%20y%3D%22453%22%20text-anchor%3D%22middle%22%20font-family%3D%22system-ui%2C-apple-system%2Csans-serif%22%20font-size%3D%2212%22%20font-weight%3D%22600%22%20fill%3D%22%230f172a%22%3EScale%20of%20Analysis%3C%2Ftext%3E%3Ctext%20x%3D%2280%22%20y%3D%2237%22%20text-anchor%3D%22end%22%20font-family%3D%22system-ui%2C-apple-system%2Csans-serif%22%20font-size%3D%2211%22%20fill%3D%22%2364748b%22%3ELong%20Term%3C%2Ftext%3E%3Ctext%20x%3D%2280%22%20y%3D%22405%22%20text-anchor%3D%22end%22%20font-family%3D%22system-ui%2C-apple-system%2Csans-serif%22%20font-size%3D%2211%22%20fill%3D%22%2364748b%22%3EShort%20Term%3C%2Ftext%3E%3Ctext%20x%3D%2235%22%20y%3D%22215%22%20text-anchor%3D%22middle%22%20font-family%3D%22system-ui%2C-apple-system%2Csans-serif%22%20font-size%3D%2212%22%20font-weight%3D%22600%22%20fill%3D%22%230f172a%22%20transform%3D%22rotate%28-90%2035%20215%29%22%3ETime%20Horizon%3C%2Ftext%3E%3C%2Fsvg%3E)

*How microeconomic and macroeconomic analysis apply across personal and policy decisions.*

**Investment portfolios** benefit from both lenses. Macroeconomic indicators — GDP growth, inflation trends, central bank policy — help you position across asset classes. When macro signals point to a slowdown, bonds and defensive [equities](/blog/what-is-equities) historically outperform. Within that macro framework, microeconomic analysis of individual companies — their pricing power, cost structure, and competitive position — determines which specific stocks deserve capital.

**Career decisions** are micro-level choices made inside a macro environment. In a recession, even highly skilled workers face layoffs. But within that recession, workers in healthcare, cybersecurity, and infrastructure typically fare better than those in discretionary retail or media (a micro insight within a macro trend). Understanding both levels helps you assess career risk and time major moves intelligently.

**Budgeting and debt management** are fundamentally microeconomic — your income, expenses, and borrowing costs are personal. But they are shaped by macro forces: the Fed's rate decisions directly affect your variable-rate credit card APR (averaging 21% in 2024), your mortgage rate, and the yield on your savings account.

Three practical takeaways for applying this framework immediately:

- **Monitor macro indicators** — Fed rate decisions, CPI reports, GDP growth — on a quarterly basis to understand the financial environment you are operating in.
- **Apply micro thinking** when evaluating a specific job offer, investment, or major purchase decision.
- **Expect a lag** — central bank policy changes take 12–18 months to fully filter through to individual prices, wages, and credit conditions.

## Common Misconceptions About Microeconomics vs Macroeconomics

Even people with formal economics coursework carry misunderstandings about how these two branches relate. Here are the most widespread — and most costly.

**Misconception 1: Macro is more important because it's bigger.**

Both branches are essential. Macro gives you the aerial view; micro gives you the street-level detail. A macroeconomic forecast that ignores micro-level industry dynamics will miss sector-specific divergences that determine actual returns. A business strategy that ignores macro forces will be blindsided by rate hikes, currency shifts, or sudden demand contractions.

**Misconception 2: Good macro conditions guarantee good individual outcomes.**

A growing economy creates conditions for opportunity — it does not guarantee individual success. The U.S. economy grew 29% from 2010 to 2019, yet median real wages rose only 6% over the same period. Macro growth and micro distribution are separate questions with different answers.

**Misconception 3: Micro and macro economics contradict each other.**

Some students encounter apparent conflicts — microeconomics predicts that prices fall when supply increases, but macro models sometimes show price stickiness even when aggregate supply expands. These are not contradictions; they reflect different phenomena at different scales, using different assumptions about how quickly wages and contracts adjust. Prices are more flexible in competitive micro markets and stickier in aggregate macro models.

**Misconception 4: Only economists need this distinction.**

Business owners, investors, policymakers, and anyone managing household finances make consistently better decisions with both lenses active. Ignoring macro trends while running a small business is like navigating with a detailed street map while ignoring the weather forecast entirely.

## Authoritative Sources

For deeper background and primary-source data on this topic, the following authoritative sources are useful starting points:

- [Bureau of Labor Statistics](https://www.bls.gov/)
- [Federal Reserve Economic Data (FRED)](https://fred.stlouisfed.org/)
- [International Monetary Fund](https://www.imf.org/)
- [World Bank](https://www.worldbank.org/)

## Conclusion

Understanding the difference between microeconomics and macroeconomics — and how they work together — is one of the most useful intellectual tools available for sound financial decision-making.

Here are the five key takeaways from this guide:

- **Microeconomics** analyzes individual consumers, firms, and markets — how prices are set, how decisions are made, and how competition shapes outcomes.
- **Macroeconomics** analyzes the economy as a whole — GDP, inflation, unemployment, and the fiscal and monetary policy tools used to steer national performance.
- The two branches are inseparable in practice: macro conditions shape the micro environment, and aggregated micro decisions produce macro outcomes.
- Real-world events — from the 2008 financial crisis to 2022 inflation — can only be fully understood by applying both lenses simultaneously.
- For personal finance and investing, tracking macro indicators quarterly and applying micro analysis to specific decisions gives you a measurable edge over reactive decision-making.

**Economics micro vs macro** is not a binary choice between two competing subjects — it is two zoom levels trained on the same complex, interconnected system. Master both, and you move from simply reacting to economic news to anticipating what it means for your specific situation.

Ready to put this knowledge to work? Try Warren, your AI financial advisor — get personalized, conflict-free guidance at heywarren.com