Latest / Freedom Flip / The Psychology of Money: Timeless Lessons on Wealth, Greed, and Happiness by Morgan Housel (EP034)

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The Psychology of Money: Timeless Lessons on Wealth, Greed, and Happiness by Morgan Housel (EP034) · Freedom Flip

0:00
The Psychology of Money by Morgan Housel.
0:02
So this book just hit me differently to realize how dumb I am thinking about money.
0:09
Most of us think money is a spreadsheet of calculate the numbers and pump out an answer.
0:14
And this book basically makes you realize it's all psychology.
0:18
It's all our own experience.
0:20
So it started because he was a failed investment banker, and he put out this random document that was 20 biases about money.
0:27
It was just a PDF, and a million people downloaded it.
0:31
So he's like, ah.
0:32
I guess if I'm failing as a best-making, I'll just write this book.
0:35
So he wrote The Psychology of Money.
0:38
And ironically, I joined a business group that mostly talked just about money.
0:42
And the guy who organized it gave me this book the first day and was like, hey, it's a really good book.
0:47
I found it super ironic, right?
0:48
Because then eventually that group for me just talked too much about the things this book warned you on.
0:54
Okay, I'm very excited to dive into this book that, of course, I didn't read.
0:58
The start that you just gave is phenomenal.
1:01
Oh, it's a banger.
1:03
I've read all three of his books.
1:05
And I just want to mention one thing for somebody who's thinking about reading.
1:08
He writes his chapters like six to ten pages.
1:11
And I love it because you're like, oh, I'm just going to read one chapter.
1:14
And then it's kind of like episodes in a show you like.
1:17
You just boom, you bang out three or four.
1:18
Yeah.
1:19
So page five had a quick one that as I was reviewing just shortly, I really like this.
1:24
It says at the top, finance is overwhelmingly taught as a math-based field where you put data into a formula and the formula tells you what to do.
1:32
And it assumed that you'll just go do it.
1:36
I love that because it's wrong, right?
1:39
And it's wrong in every conversation I have, even with people who study finance or who are in finance.
1:45
And in the middle of that page, he says, two topics that impact everyone, whether you are interested in them or not, health and money.
1:52
And I wrote the note next to that ham, H-A-M,
1:55
It's like everyone's thinking about ham, right?
1:59
The Jews and Muslims won't eat it.
2:01
Christians will eat it all the time.
2:02
It's pig, but it's health and money.
2:04
Like health and money is just, it's everywhere.
2:06
It's everything, whether or not you even think about it.
2:09
Interesting.
2:09
Let's keep going.
2:10
So the book goes into...
2:13
A really interesting one where he talks about the experiences.
2:16
So he says on page 13, as an investor, Michael Badnick says, quote, some lessons have to be experienced before they can be understood.
2:24
And he says, we're all victims in different ways to that truth.
2:27
Right.
2:28
So it talks about like somebody who experienced Great Depression or their parents did.
2:31
They see the world through this completely different lens than someone who hasn't.
2:35
And it goes in to show when you were born.
2:37
Like if you're born in 1950, then the stock market like goes straight up.
2:41
If you're born in 1970, it's flat for like 15 years.
2:45
And what an impact that plays on your psychology of how you think the world works.
2:50
And he really he makes this math where he really says even your willingness to take on risk is really tied off in cases to when and when and where you were born.
3:01
So he has this Financial Times economist says our findings suggest that individual investors willingness to bear risk depends on personal history, not intelligence or education or sophistication, just the dumb luck of when and where you were born.
3:14
Yeah, that is very true.
3:17
I just wonder if he talks later about how to rewire your brain.
3:22
I think the stories rewire your brain because they show you people who screwed up their lives because they didn't rewire their brain.
3:30
So it makes you say, like, I don't want to be like that guy.
3:33
Like, that guy went off a cliff.
3:35
So I think that's the power that he really pushed.
3:37
So here's a good story on page 17.
3:39
So it talks about a New York Times article.
3:41
And, you know, this New York Times article is destroying Foxconn that produces iPhones.
3:47
And this guy who's in America that's Chinese, you know, is talking about this story.
3:51
And he's like, what do you mean these jobs are terrible where you're working nine to nine, six days a week?
3:57
My aunt works there.
3:58
And the person was like, these are sweatshops and this is terrible.
4:02
And at the end of the explanation, it was so powerful because he goes, my aunt worked several years in what Americans call sweatshops.
4:10
It was hard work, long hours, small wage, poor working conditions.
4:14
Do you know what my aunt did before she worked in one of these factories?
4:17
She was a prostitute.
4:19
And this is kind of the key theme.
4:21
He explains it's so much more psychology than it is money.
4:24
Like she's honored to have that job.
4:26
She's just happy that she's not doing prostitution.
4:30
And like, who are we to believe I know that's a bad job for her?
4:33
And so they really talk about these unique mental models.
4:36
So I really love page 18.
4:38
Okay.
4:39
So page 18, like, blew my mind.
4:41
At the top, it says, every decision people make with money is justified by taking the information they have at the moment and plugging it into their unique mental model of how the world works.
4:51
So the problem is we don't realize we're wearing these sunglasses of how our mental model.
4:55
So now, how does he explain this one?
4:57
Take the simple example of lottery tickets.
4:59
So this is mind-blowing.
5:01
Americans spend more on lottery tickets than movies, video games, music, sporting events, and books combined.
5:08
Wow.
5:10
What?
5:11
And guess who buys most of them?
5:12
The poorest.
5:13
The poor people.
5:14
You nailed it.
5:14
Of course.
5:15
The lowest income households in the U.S. on average spend 412 a year on lotto tickets.
5:21
Four times the amount of those in the highest income groups.
5:25
Yet, 40% of Americans cannot come up with $400 in an emergency.
5:29
Isn't that wild?
5:31
Yeah, this book was written early 2020 also.
5:34
I find regarding lottery tickets, this is something that I noticed in Argentina.
5:39
And my interpretation to lottery tickets is people just want to get out of their current reality.
5:47
They don't see a path whatsoever.
5:49
There's no escape.
5:51
But maybe...
5:52
maybe I am the lucky one this Sunday and I get the lottery ticket and now life can be finally different.
6:01
Yeah.
6:01
Which is interesting because everything gets tied into money and we're not going to be here sitting and pretending that
6:09
money cannot help.
6:10
Of course, money can help.
6:12
But I think there's enough statistics that shows that even the people that win the lottery ticket, they lose everything after XYZ amount of years and that it doesn't really increase the level of happiness in a sustained way.
6:24
It flips, it actually decreases.
6:25
And he goes into that a little bit, but you nailed it.
6:28
On the next page, he sums up what you just said.
6:30
He says, we are paying for a dream.
6:32
And you may not understand that because you are already living a dream, that's why we buy more lotto tickets than you do.
6:39
And that's, you know, someone that's poor that's explaining it.
6:42
And I love that when he says, what you're doing seems crazy, but I kind of understand why you're doing it.
6:48
That uncovers the root of many of our financial decisions.
6:51
I think this is something I was thinking about last night is when I think someone's wrong, I need to stop wanting to change their mind.
6:57
And I need to think, I want to understand how they see the world.
7:01
Like what led them to this formula of decision making that got them there?
7:06
Because that allows me to be curious rather than me being like, I know this answer.
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I'm going to teach you.
7:12
Then I can be like, how did you come up with that decision?
7:14
Like, why are you buying lotto tickets?
7:16
Rather than, did you know that it's an additional tax on humans and you shouldn't be buying them?
7:23
Me as the educator is much worse than me as the curious person wondering, why are you spending $400 a year on the lotto tickets?
7:29
100%.
7:30
Have you ever bought lottery tickets?
7:33
I'm sure like a couple of times kind of is a fun thing or maybe I was young and I didn't have any money and I was looking for a dream.
7:39
I don't.
7:40
What about you?
7:41
Yeah, of course.
7:42
Yeah.
7:43
Well, two things.
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One is I didn't like my life.
7:45
I was working in an office and I went escape.
7:47
And the other one is the girl that was selling it was very hot.
7:51
So I was pretty motivated.
7:55
I love that.
7:56
So page 20 has a banger.
7:59
So this chart, it's labor force participation rate for age 65 and under.
8:02
In 1880, 78% of men who were 65 and older worked.
8:11
In 1880, 78%.
8:13
So basically, all men over 65 just worked.
8:17
And guess what?
8:17
It probably kept you alive because you're moving your body.
8:20
So you can see in the chart, it just starts going down, down, down, down, down, down, down.
8:24
And that 2000, that was the all-time low in 1990.
8:27
It was 18% of men 65 and over worked.
8:28
Wow.
8:32
So you basically see this, and he dives in this, this whole idea of social security and retirement, that didn't exist.
8:39
That was never a thing until basically somewhere in the 1900s, it became this like expectation.
8:45
And then everyone demanded more money for it and to secure it.
8:49
But prior to that, like 1880, all men just worked.
8:53
You're over 65.
8:54
And guess what?
8:54
Life expectancy like was 65.
8:55
Yeah.
8:57
So you were literally working until you went in the grave.
9:01
And I think that's just a misunderstanding that people have of comparing ourselves to like, oh, people always had retirement.
9:08
No, they didn't.
9:09
They retired when they were dead.
9:10
That was retirement.
9:11
You go into the grave.
9:12
And we're just misunderstanding that.
9:14
I remember in Argentina growing up when I started working at the age of, I think I was 19, the whole social security basically collapsed.
9:24
Wow.
9:25
They stole everything as always.
9:27
So I grew up knowing there is no way.
9:31
That's going to be there.
9:31
There's no way that I will have any money.
9:34
But I think that just living your life thinking that that's the case, that the government will take care of you, is such a risky move.
9:42
I think it's way better to learn how to invest, be able to spend less than what you make, and be able to invest the rest.
9:51
Yeah.
9:52
We shouldn't be investing.
9:54
That's also another important thing.
9:55
But we have to because governments bring more money and therefore our money gets screwed up.
10:02
We cannot be holding cash over very long periods of time.
10:05
So on page 26 and 27, I'd say it's kind of a banger story.
10:11
Did you know Bill Gates had a third business partner, Paul Allen and this guy, Kit Evans?
10:17
Here's the crazy thing.
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Kit Evans died in high school.
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He was one...
10:22
In a million.
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And basically, he died at Spreeland King.
10:26
And Bill Gates said this would have been the third co-founder.
10:29
And he was amazing.
10:31
And Bill Gates was also one in a million in that his high school had a computer when he went to grade school and high school.
10:38
And the chapter they call, you know, luck and risk are siblings, where it's like crazy example.
10:44
And the same thing happened with Charlie Munger and Warren Buffett.
10:47
They had a third partner who got two into leverage, and then they bought him out at the bottom.
10:51
And they were like, he was just as smart, just as capable, but he wanted to get there faster.
10:56
And I think that's kind of fascinating as another example.
10:58
On page 30, the author says, after spending years around investors and business leaders, I've come to realize that someone else's failure is usually attributed to bad decisions, while your own failures are usually chalked up to the dark side of risk.
11:13
I thought about that one of basically, you know, the fundamental attribution error.
11:17
It's so true.
11:17
And it's funny with this guy meeting really, you know, famous people.
11:20
He says it's even more true.
11:22
And he gave examples of that on page 31.
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Because, quote, my job, my God, John, said Vanderbilt, you don't suppose you can run a railroad in accordance with the statutes of the state of New York, do you?
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And the author said, first thought was, this is why that dude was so successful.
11:39
And I was talking about Vanderbilt, Cornelius Vanderbilt, richest person in the world at the time, just like ignoring the laws as he built the railroads, which kind of reminds me of Uber.
11:47
Right.
11:48
It's like, look, you guys can't have these dumb laws that are preventing me from having a better option because you're in cahoots with the cab companies.
11:55
And then John D. Rockefeller is similar.
11:57
His frequent circumventing of the law, a judge once called his company, quote, no better than a common thief, end quote.
12:05
And then the final one on 31 is, quote, what do I care about the law?
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End quote.
12:10
Vanderbilt once said, quote, ain't I got the power?
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End quote.
12:15
It's like these guys are like ruthless.
12:18
You know, like the government's going to try and screw me and rob from me if I don't rob from it, like take advantage of the law first.
12:24
Yeah.
12:24
Now, they were producing products, right?
12:26
So it wasn't like they were actually just stealing from people.
12:29
They were creating railroads and steel and everything else and oil.
12:33
I really liked that one.
12:34
Is there a point that he's trying to make with those stories?
12:37
Yeah, I think, you know, he comes back to them later on and kind of talks about how these guys were willing to take on a ton of risk.
12:45
And that's just the way they saw the world.
12:47
That was the lens of the world.
12:48
Later on, he gets to the point where the next chapter he calls never enough.
12:53
And he has quotes from them.
12:54
So he has a quote where it says, somebody asked Rockefeller if he's made enough money.
12:58
And his response was, I just need a little bit more.
13:01
And so he's kind of saying, look, these guys take a lot of risk.
13:04
They see the world as a different world, but they're also trapped in this game.
13:08
And it comes back to a quote this book uses and many others where it says, some people can never figure out how to make money and the other group can never figure out how to stop.
13:18
And most people can't figure out how to make enough money.
13:20
That's almost everyone.
13:21
And we don't realize the other side of the coin that these guys never really stop.
13:25
And that's what it's driving with the stories.
13:27
I think there's a little difference between a person that makes some money or let's call it a lot of money for some standards, makes $5 million, $10 million.
13:39
There is a big difference than when you are naming Rockefeller or Elon Musk or Jeff Bezos or Warren Buffett.
13:46
Because these people are, even though there is a misconception that these guys have $200 billion, they don't have that in cash.
13:55
Most of that is tied into their own businesses, which means they cannot sell that.
14:01
Yeah.
14:01
They cannot sell everything.
14:03
They may sell a little bit, but not everything.
14:05
Yeah.
14:05
If they start selling a lot, the price crashes.
14:08
Of course, it's going to collapse.
14:09
So I think that there is, we are not discounting.
14:12
I think we should discount that quote unquote net worth by 50% or maybe 70% to get a real value.
14:19
I think that when they are talking about, I need just a little bit more of money.
14:22
I think for those kind of people, it's not about money anymore.
14:27
It's about something else.
14:28
It could be about the game.
14:29
It could be about power.
14:31
It could be about competition.
14:34
But I don't think that it's about money.
14:35
Yeah, it's interesting.
14:36
You asked that question, what's it about?
14:38
In his own words, he says, the line between inspiringly bold and foolishly reckless can be a millimeter thick and only visible with hindsight.
14:48
Risk and luck are doppelgangers.
14:50
So I think a little bit what he's saying too is like luck does play some role into the success.
14:54
And these guys are going full steam as hard as they can.
14:58
And things could really blow up in retrospect.
15:01
Yeah.
15:02
But they love the game.
15:03
And Jeff Bezos, or sorry, Bill Gates has a quote on 34.
15:07
Bill Gates once said, success is a lousy teacher.
15:09
It seduces smart people into thinking they can't lose.
15:13
And I think he's kind of setting up this idea that, you know, again, a fallacy is that we have one win and we're going to keep winning.
15:19
And that's something just to be aware of.
15:20
Yeah.
15:21
So a banger on 42.
15:23
This is a good one.
15:24
He's really pushing this social comparison is the problem here.
15:28
So he gives the examples and he goes through his highest paid person in the world and they just keep comparing.
15:34
Warren Buffett compares to Jeff Bezos, compares to the other one.
15:38
Or in baseball, you're looking at professional players and you just keep going on the list, which you can never win this battle.
15:44
It can never be won is what he says.
15:46
And the example he gives at the end, he goes, in Las Vegas, the dealer, stone cold, replied to my question, quote, the only way to win in a Las Vegas casino is to exit as soon as you enter, end quote.
16:00
That's awesome.
16:01
And the author says that's exactly how the game of trying to keep up with other people's wealth works too.
16:07
So the final point he punches pretty deep with this one, I think about this one a lot, is on page 42.
16:13
He says, in most things you can figure out what you've had too much.
16:16
So enough is realizing that the opposite, for example, an insatiable appetite for more will push you to the point of regret.
16:23
The only way to know how much food you can eat is to eat until you're sick.
16:27
Few try this because vomiting hurts more than any good meal.
16:31
For some reason, the same logic doesn't translate to business and investing.
16:35
Okay.
16:36
That one's not powerful for you.
16:37
That like hits me deep.
16:38
Okay.
16:39
Tell me.
16:39
Tell me how do you read that?
16:41
So like tires, when they're testing tires, they just run the tire till it explodes.
16:45
And I think with homes, like I have friends who have multiple homes and they basically, usually by the time they have two or three, they're like, dude, these homes own me.
16:54
So you get some natural pain.
16:56
But I think with actual money or investing, people don't see there's a cost to accruing this wealth.
17:03
There's a cost in obtaining it.
17:04
I agree with you.
17:05
I agree with you.
17:06
And I think very few people actually really recognize that.
17:10
And for some reason, the visual of too much food is when you barf.
17:14
There's not a too much money that's going to make you barf.
17:17
And that's dangerous because you don't realize you're on this treadmill or this competition of social comparing to the neighbor or the person in town with a better life.
17:27
And we don't, it's invisible what the cost is to achieve that, right?
17:31
Or what their actual home life is like or other things.
17:34
Yeah, I totally agree on that with that 100%.
17:37
And I think a lot of these things you may have thought of.
17:39
For me, when I read this book, it was really one of the first times I dug into these topics.
17:44
And he did it so well to explain.
17:45
So on page 66, he explains, you know, first there was this banger.
17:50
Roughly 99.9% of all companies that were created went out of business.
17:55
And he went over kind of the last like 100 years.
17:59
Four U.S. presidents were assassinated.
18:02
675,000 Americans died in a single year from a flu pandemic.
18:05
30 separate natural disasters killed these 400 Americans.
18:08
33 recessions lasted 48 years.
18:10
He goes through terrible stuff.
18:12
Annual inflation exceeded 7% in almost 20 separate years.
18:16
The words economic pessimism appeared in a newspaper at least 29,000 times.
18:20
Wow.
18:22
So he says all this terrible stuff that looks horrible over this 170 years.
18:28
But then he goes, quote, our standard of living increased 20 fold in those 170 years, but barely a day went by that lacked tangible reasons for pessimism.
18:37
He just really bangs this point that we all think the world's ending every day.
18:41
Meanwhile, it's just going up and to the right.
18:44
Like better, richer, fewer problems, fewer risks.
18:48
I think that that's going to depend on what are you consuming.
18:51
Yeah.
18:51
And yes, if you are consuming certain media, yeah, of course, it's going to look like the world is ending.
18:58
But if you just shut it down and just go outside, you most likely will not experience that.
19:05
Yeah, it's spot on.
19:07
So page 78 talks about Peter Lynch is one of the best investors of our time.
19:12
It says, quote, if you're terrific in this business, you're right six times out of 10, he once said.
19:17
Now, the author talks about there are fields where you must be perfect every time, like flying a plane or, you know, doing surgeries.
19:24
Investing, business, and finance are just not like those fields.
19:27
And then he uses a quote from Jeff Bezos at the bottom of page 78.
19:30
If you think that's a big failure, he's talking about Fire Phone.
19:34
If you think that's a big failure, we're working on much bigger failures right now.
19:38
I am not kidding.
19:39
Some of them are going to make a Fire Phone look like a tiny little blip.
19:43
I love that.
19:44
The Fire Phone was Amazon's competitor to the iPhone, right?
19:48
And that just didn't work out.
19:51
Yes.
19:52
Just didn't work out.
19:52
But I think that that is the mindset, the mindset of a leader.
19:56
That is like, we're just going to keep going.
19:57
We're going to keep innovating.
19:59
And eventually things are going to work out.
20:01
Yeah.
20:02
Yeah.
20:03
Page 80, he doubled down on that.
20:05
We talked about Berkshire Hathaway in 2013.
20:07
Warren Buffett said he owned 400 to 500 stocks in his life and made most of his money on only 10 of them.
20:13
Charlie Munger followed up, quote, if you remove just a few of Berkshire's top investments, its long-term track record is pretty average.
20:21
Very good.
20:22
I knew you'd like the Charlie one.
20:26
Skipping to page 89, this is kind of cool.
20:29
In this book, 30 Lessons for Living, gerontologist Carl Filmer interviewed a thousand elderly Americans looking for the most important lessons they learned from decades of life experience.
20:40
He wrote,
20:41
No one, not a single person out of the thousand said that to be happy, you should try and work as hard as you can to make money to buy the things you want.
20:49
What they did say was they valued quality friendships, being part of something bigger, spending quality time and structured time with your children.
20:58
Quote, your kids don't want your money anywhere near as much as they want you.
21:02
Specifically, they want you with them, the author writes.
21:06
I love it.
21:07
And I think that's very true.
21:08
I don't think that you can have more than one number one priority at the time.
21:14
I think that you can have a number two priority, totally fine.
21:17
But yeah, if the priority number one is making money, then other things are going to have to give up.
21:26
Yeah, everything comes down to where are you spending your time?
21:29
Are you spending your time doing something that you are really passionate about, that you really like, that you really enjoy, that you are contributing?
21:37
Are you spending time with people that you want to be spending time with?
21:40
or you are just chasing this God called money.
21:44
And it's fascinating to see this, especially with people that have a lot of money.
21:48
And we were in groups where we can see that every single day.
21:52
And it's mind-blowing.
21:53
Yeah, I have so much to say on this point.
21:55
And he nails, I mean, you're doing a great job leaning into what he says.
21:58
So one of his final lines on that page 89, he says, controlling your time is the highest dividend money pays.
22:05
And that's it.
22:06
It all comes down to controlling your time.
22:07
Ideally to do something with purpose, right?
22:09
With your top mission, whether it's family, a business, a nonprofit, whatever it is that you're trying to change the world.
22:14
It could be a sport or hobby.
22:15
But it's like you have the focus to go change the world in that way.
22:19
And I wrote in my notes under this ER, which is like, you know, emergency room, but it was eulogy traits are greater than resume traits.
22:29
And it's just this reminder that like eulogy traits are the ones that people will talk about when you're dead.
22:33
Right, man, he was a great dad, or man, he was a good friend, or man, he was trustworthy and reliable, and I really just love time with him.
22:41
Resume traits are the money, the car, the house, the job, the title.
22:45
It's like nobody really uses that in a eulogy.
22:49
It's just not interesting.
22:50
It's not meaningful or purposeful.
22:53
And he actually leads into it.
22:55
He says, now a short chapter on one of the lowest dividend money pays.
22:59
And the next chapter is called Man in the Car Paradox.
23:02
And I really like this story because I've never been much of a, quote, car person.
23:07
But he basically explains that when you see someone in an awesome car, in their mind, you're looking at him in the car and like, oh, that dude's awesome.
23:16
But everyone, it's a paradox.
23:18
It's a flip, a freedom flip.
23:20
But they go, wow, I would look cool in that car.
23:23
So then you just imagine yourself in the car and you basically ignore the dude.
23:28
Like it's not even, there's no credit.
23:31
That is interesting.
23:32
I think that when I didn't have anything, I was more curious about like the life of that person.
23:38
To be like, how is the life of this person to be able to afford this Bentley, this Ferrari, this Lamborghini?
23:45
Yeah.
23:46
And what he says is, look, I'm casting judgment.
23:50
But if this kid grew up like we have a friend who grew up in Argentina that, you know, always looked at cars and became obsessed.
23:57
So to him, getting his first car was this sign of success.
24:00
And it's like, I don't really now do you need a bunch?
24:04
Different question.
24:05
But it's through his lens of how he sees the world, the psychology that matters.
24:09
It's not a financial metric because it's a depreciating asset.
24:12
So I need to forget about that and realize what he sees.
24:16
And that next chapter, he really hits that wealth is not what you see.
24:20
Wealth you can't see.
24:22
You can see goods.
24:23
You can see income being spent on goods.
24:26
But those aren't wealth.
24:27
Yeah.
24:27
He says, wealth is hidden.
24:29
It's income not spent.
24:31
Wealth is an option not yet taken to buy something later.
24:34
It's value lies in offering you options, flexibility, and growth to one day purchase more stuff than you could right now.
24:40
Yeah, so I think those are most of my bangers from the book.
24:44
I will say it's probably had more of an impact than me on any book around money.
24:49
And I really like how he flows through these little five, six-page chapters where he basically just breaks the brain on—it's 20 different topics that he explains in his PDF—
25:01
which you could also look at, I haven't read yet, as just seeing what are the biggest mistakes everyone makes with money.
25:08
And to end it, you know, I think this is a powerful one, this end of history illusion, what psychologists call the tendency for people to be keenly aware of how much they've changed in the past, but to underestimate how much their personalized desires and goals are likely to change in the future.
25:23
And I think this is something important for us to remember.
25:25
We all think today is the final version of us, but it's actually hopefully the shittiest version of us.
25:31
Because tomorrow, next week, and next year is much better.
25:34
And I heard this Freedom Flip quote a week or two ago from my buddy Hunter, and I love it.
25:39
The quote from Hunter is...
25:41
The curse of consistency is that every day feels the same.
25:46
The curse of inconsistency is that every year feels the same.
25:50
I love that.
25:51
And it's a huge, I don't remember if I used the word curse, but I put that into my iteration of the quote.
25:57
Because when you're doing the workout or the hard work or the early wake up or the whatever each day for the first couple months, it's miserable.
26:05
Right.
26:06
And each day just feels the same and boring, eating the same food or doing the same hard work or whatever it is.
26:11
But man, by the time you reach each year, you're like, I'm a different human.
26:15
But when you're not committed to prioritizing anything or actually being consistent with anything each year, you're like, oh, man, nothing has changed.
26:24
And you're cursed either way.
26:26
That's the unique thing.
26:27
I love that.
26:28
There is a part of the book that I want to maybe mention, which is freedom is the ultimate dividend.
26:34
The highest form of wealth is the ability to wake up every morning and say, I can do whatever I want today.
26:40
Controlling your time is the highest dividend money pays.
26:44
A high salary or high income means nothing if you have zero control over your schedule and life.
26:52
I think this is something that we are both of us very passionate about.
26:56
Being able to do what you want.
26:57
And I was able to do this without money and with money, which is fascinating because some people may say, well, I need to have XYZ amount of money or XYZ amount of income to then do whatever I want.
27:11
And I just go back to the word alignment.
27:14
You can do now something in order to bring yourself to alignment so you can start doing things on a day-to-day that are aligned with yourself.
27:23
Putting alignment first instead of money first.
27:26
I love that.
27:27
And a quote from your boy on page 214, Charlie Munger once said, I did not intend to get rich.
27:33
I just wanted to get independent.
27:35
Very true.
27:36
Yeah.
27:36
Me growing up, I thought that I wanted to be rich.
27:39
But then what I realized that what I wanted was freedom.
27:41
Yeah, I think it's interesting.
27:42
So on page, just kind of the final bangers on page 207, chapter all together now, he sums up what he views as the most important points from the book.
27:53
And a few that I really liked were less ego, more wealth.
27:59
Saving money is the gap between your ego and your income, and wealth is what you don't see.
28:04
So wealth is created by suppressing what you could do today in order to have more stuff or options in the future.
28:11
Pretty good reminder that it's like, do you want to improve or prove that you're really special?
28:17
You can improve or prove you have that choice.
28:19
The second one I really liked was use money to gain control of your time because not having control of your time is such a powerful and universal drag on happiness.
28:28
The ability to do what you want, when you want, with who you want for as long as you want pays the highest dividend that exists in finance.
28:35
Be nicer and less flashy.
28:37
Define the cost of success and be ready to pay it.
28:40
Beautiful.
28:41
Beautiful.
28:41
All right.
28:41
Reminder, The Psychology of Money, Morgan Housel.
28:44
I think he has three books out now.
28:46
And by the time you're watching this, maybe you'll have a fourth.
28:48
Highly recommend all of them.
28:50
Quick reads, powerful punches in the gut, especially for those crazy people like me that needed to understand finance in a different way than what they learned in their finance degree.
28:59
That's flip.