The Human Side Of Money by Client Care
Wise words from Morgan Housel
Morgan Housel is an ex-columnist for the Wall Street Journal, a two-time winner of the Best in Business Award from the Society of American Business Editors and Writers, and winner of the New York Times Sidney Award. In 2022, MarketWatch named him one of the 50 most influential people in markets. His book, The Psychology of Money, has sold over 4 million copies and has been translated into 53 languages.
Whether or not one is interested in finance, it is a must-read for anyone wanting to understand how we behave around money. I would like to share and comment on some Housel quotes which demonstrate this.
1. Doing well with money isn’t necessarily about what you know. It’s about how you behave. And behaviour is hard to teach, even to really smart people.
It is easy to assume that only smart people are good investors when, in reality, it is often the opposite. Some people believe they have a special skill when it comes to investing, while history tells us that very often, it is precisely these people who make the biggest investing mistakes.
2. Money’s greatest intrinsic value – and this can’t be overstated – is its ability to give you control over your time.
As we get older, time seems to fly past at an ever-increasing pace. Not knowing when one has enough money to spend time doing the things that really make us happy is a common mistake many make chasing more financial wealth. Having time is real wealth.
3. Spending money to show people how much money you have is the fastest way to have less money.
Showing off one’s wealth to impress others doesn’t actually work. Instead, it shows our insecurity. Buying shiny things to move from one dopamine hit to the next is the quickest way to end up with nothing.
4. Getting rich and staying rich are different things that require different skills.
We see people who build unbelievable businesses doing what they love and are good at, creating great wealth. Many of those people lose everything once they stop working, as they do not have the skills or knowledge to preserve what they have built.
Housel’s book covers the above points and many more, which illustrate how we, as humans, often are our worst enemies when it comes to money. Being aware of our natural behaviour is the first step to making any changes we need to make for better long-term financial and LIFE outcomes.
Morgan Housel has a new book, Same As Ever, coming out on the 7th of November. It is about what never changes in a changing world.
Consider this as a great Christmas present!