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Carl Richards – Rewiring Your Financial Mindset in the Age of Comparison | #602

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Oct 20, 2025

Guest

Carl Richards

Carl Richards, a Certified Financial Planner and author, dives into the emotional side of money, discussing how societal norms shape our views on wealth. He introduces the concept of an emotional balance sheet and the 'overnight test' for investment decisions, advocating for aligning financial choices with personal goals. Richards also explores how social media impacts our perceptions of wealth and offers insights on overcoming the pressures of lifestyle inflation. His practical advice aims to help listeners reclaim control over their financial mindset.

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INSIGHT

Money Carries Personal Meaning

People layer personal meaning onto money so it rarely feels neutral.
Carl Richards shows money's emotional charge stems from upbringing, culture, and experiences.

insights

INSIGHT

Emotional Balance Sheet Matters

We keep nonfinancial values and feelings in an "emotional balance sheet."
That sheet holds priceless items like time with family and grudges you keep revisiting.

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ADVICE

Use The Overnight Test

Use the "overnight test": imagine your holding sold and cash deposited overnight.
If you wouldn't buy it back at that price, sell it now.

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Money as the Current Flowing Through Life

02:22 • 4min

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What does the dollar sign make you feel?

06:27 • 5min

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What is an emotional balance sheet?

11:12 • 2min

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How do sketches and practice shape ideas?

13:40 • 2min

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What is the Overnight Test for holdings?

15:56 • 6min

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How should you focus on what you can control?

21:34 • 4min

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What matters more than market timing?

25:36 • 6min

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How does social media change comparisons?

31:20 • 3min

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How much time do we waste on devices?

34:07 • 2min

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What if a net-worth neon sign followed people?

36:04 • 4min

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How does luxury creep reshape expectations?

39:56 • 3min

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Why do investors run when prices fall?

42:40 • 5min

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What does diversification protect against?

47:13 • 3min

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How should we treat short-form financial content?

49:52 • 5min

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What is scarcity versus abundance mindset?

54:40 • 3min

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What are Carl's plans after the book?

57:41 • 3min

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Where to find Carl's work and newsletter

The Wall Street Waltz

90 Visual Perspectives, Illustrated Lessons from Financial Cycles and Trends

Kenneth L. Fisher

The Wall Street Waltz is a unique, visually driven exploration of market history, presenting 90 charts and graphs that depict the recurring patterns of booms, busts, and financial cycles. Ken Fisher uses these visuals as a springboard to discuss broader investment concepts, emphasizing that while market details change, the fundamental behaviors driven by human psychology—fear and greed—remain constant. The book is not a how-to guide for stock picking, but rather a panoramic view of how markets have moved over time, offering readers historical perspective to inform their own investment decisions.

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Your Money, Reimagining Wealth Through 101 Simple Sketches

Using Your Energy and Attention Intentionally

Carl Richards

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Your money or your life

Joseph R. Dominguez

Joe Dominguez

Vicki Robin

This book offers a holistic approach to personal finance, encouraging readers to view money as a form of 'life energy' and to align their spending with their values. It provides nine steps to help readers stop living paycheck to paycheck, get out of debt, and achieve financial independence. Key concepts include calculating net worth, evaluating the life energy spent on work, and investing wisely. The authors emphasize the importance of finding one's 'point of enough' and living a more deliberate, meaningful life.

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The Secret

Rhonda Byrne

The Secret by Rhonda Byrne introduces the concept of the law of attraction, which suggests that positive thoughts can attract positive outcomes in life. The book outlines a three-step process: ask, believe, and receive. Byrne emphasizes the importance of gratitude, visualization, and maintaining a positive mindset to achieve one's desires. The book covers various areas such as prosperity, relationships, health, and happiness, and includes examples and quotes from historical and modern-day teachers who have allegedly used this principle to achieve their goals.

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• Mentioned in 21 episodes

Triumph of the Optimists

101 Years of Global Investment Returns

Elroy Dimson

Mike Staunton

Paul Marsh

This book provides an authoritative account of a century of investment returns in sixteen countries, including the U.S. , U.K. , Japan, France, Germany, and others. The authors present a clear and consistent analysis of total returns, including reinvested income, and address issues such as survivorship bias and the long-term equity risk premium. The book is essential reading for investment professionals, financial economists, and investors, offering insights into the broader tendencies of equity markets over the long term.

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• Mentioned in 4 episodes

The one-page financial plan

Carl Richards

#4934

• Mentioned in 7 episodes

The Behavior Gap

Carl Richards

Carl Richards' "The Behavior Gap" explores the psychological factors that hinder investors from achieving their financial goals. It highlights the common mistakes investors make due to emotional biases and lack of discipline. The book emphasizes the importance of understanding behavioral finance principles to bridge the gap between knowledge and action. Richards provides practical strategies and tools to help investors overcome these challenges and make better financial decisions. Ultimately, the book aims to empower readers to take control of their financial future by aligning their actions with their knowledge.

Today’s guest is Carl Richards. Carl is a Certified Financial Planner, built and sold an investment firm, and hosts the podcast 50 Fires, which is backed by Chip and Joanna Gaines. He’s also the author of The Behavior Gap and The One-Page Financial Plan and his newest book is called Your Money: Reimaging Your Wealth with 101 Simple Sketches.

In today’s episode, Carl discusses the emotional aspects of money and how our perceptions of wealth can be influenced by societal norms and personal experiences. He introduces concepts like the emotional balance sheet and the overnight test for investment decisions, emphasizing the need to align financial choices with personal goals rather than external pressures. The discussion also touches on the impact of news and social media on financial behavior.

(0:00) Starts

(1:15) Introduction of Carl Richards

(5:32) Emotional aspects of money

(12:19) The overnight test

(20:26) Focusing on what you can control

(24:36) Fundamental investing principles

(28:11) Social comparisons and social media effects

(32:28) The concept of perceived wealth

(37:16) Lifestyle inflation and hedonic adaptation

(44:39) Diversification and performance chasing performance

(48:22) The impact of news on investments and when to sell

(52:13) Scarcity vs abundance mindset

(54:51) Celebrating milestones, Carl's future plans, and reader responses

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Past guests include Ed Thorp, Richard Thaler, Jeremy Grantham, Joel Greenblatt, Campbell Harvey, Ivy Zelman, Kathryn Kaminski, Jason Calacanis, Whitney Baker, Aswath Damodaran, Howard Marks, Tom Barton, and many more.

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Editing and post-production work for this episode was provided by The Podcast Consultant (https://thepodcastconsultant.com).

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