Morgan Housel on getting & staying rich

2022–2026 · changed view

“Oh, I think it's very different. What I meant by no one is crazy is that it is so easy for people to look around at society and how people are spending their money and saving their money and investing their money and say, why the hell would anybody do that? Why would you waste your money on this? Why would you hoard your money like that? And actually, think, if you peel back the onion layer of what's going on in those people's lives, no one is really that crazy with how they spend their money or save their money. It makes sense to them in that moment. My brother-in-law is a social worker. He works with very disadvantaged kids, kids who are abused at home, who don't have homes. And a lot of those kids, not surprisingly, do very poorly at school. They misbehave, they get in fights, they don't go to school. And it is so common for those kids that the teacher will look at those kids and say, why are you acting like this? Why don't you do the right thing? It's so obvious. And he says there's a phrase in social work: all behavior makes sense with enough information. That if you look at what those kids are dealing with in life, it would all make sense to you why they are misbehaving at school. And I think that's a powerful idea for a lot of things in life, that all behavior makes sense with enough information.”

2022–2026

“And the wider the channel is, the more that you can endure. And so much about compound interest, not just with money, but with relationships and careers and friendships, comes down to what can you endure? How many unknowns and the depths of those unknowns can you endure and survive? And so much, I wrote this in Psychology of Money. If you have to like sum up doing well financially in one word, I think it's survival. That's true in your career. That's true for savings. That's true for investing. Absolutely. It's just survive. It's just what can you endure? What can you put up with? And when you view it like that, you realize that like every dollar that you save is a claim check of independence that will serve you not just in the future but today.”

2022–2026 · changed view

“What I think is true is that on average, people who have more money tend to have fewer bad days, but I don't know if they have more better days. I think it is more likely that when you have more money, you are less likely to wake up and be like, man, things are not going well. But that doesn't necessarily mean that you're going to wake up grinning ear to ear. Now, that's a lifestyle improvement. If you have fewer bad days, that's like great. Your life is better. That's obviously better than the alternative, but it's not happiness. It's a very different thing. And I think it can throw some people off when they aspire to happiness or they think that what they're achieving in the money they're making should make them happy. Sometimes it does. Very often it doesn't. And they wake up and they're like, 'What happened?' Like I thought this was going to make me happy, but I'm not. So, I think there's a level of expectation setting where it's like I think money can be more like a vaccine where like it can prevent a lot of misery, which is great. Vaccines are wonderful. Like we don't have polio. It's a great thing, but maybe that's a good analogy because you and I don't wake up in the morning being like, 'Oh, I'm so glad I don't have polio. So grateful for the fact we don't do that.' We don't think about it. And I think that's a lot of what money can do. It is a lifestyle improvement, but don't think it's going to make you waking up ear to ear, grinning ear to ear.”

2023–2026

“For a lot of people, not everybody, but for a lot of people, the more you are showing off or you just desire to show off, a lot of it is a wound that was inflicted upon you and you're like, I'm going to get back. And so, and sometimes too, you're not even showing off for other people. You're doing it for, you're doing it to prove to yourself.”