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Morgan Housel: Wealth is What You Have Minus What You Want

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Jan 20, 2026

Guest

Morgan Housel

Morgan Housel, partner at Collaborative Fund and bestselling author of The Psychology of Money, shares his insightful approaches to wealth building. He emphasizes that the skills to maintain wealth are different from those needed to acquire it. Listeners discover why simple, 'boring' investing outperforms complex strategies, the importance of mental accounting, and how to avoid social pressures that can erode financial success. Housel also discusses balancing saving with enjoying life and the psychological aspects of spending and contentment.

01:57:55

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insights

INSIGHT

Money Prevents Misery, Not Guarantees Joy

Money reduces bad days but doesn't guarantee constant happiness.
Aim for contentment, not perpetual happiness, by matching wants to needs.

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ADVICE

Save To Buy Independence

Save to buy independence today, not just for delayed gratification.
Every dollar saved widens your channel of endurance for life's shocks.

insights

INSIGHT

Wealth Is Perception Through Contrast

Psychological value comes from contrast, not absolute amounts.
Downgrades hurt more than low absolute wealth because of prior highs.

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What drives Morgan and aspiration vs envy

00:58 • 2min

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Money's role: fewer bad days not constant happiness

02:52 • 5min

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Independence as a spectrum and survival

07:22 • 8min

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Contrast, downgrades, and feeling rich

Can most people beat the market?

21:39 • 54sec

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When to buy a house and housing's social impact

22:33 • 6min

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Simple investing: dollar-cost into index funds

28:43 • 2min

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Mental accounting and using earnings intentionally

30:49 • 4min

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Life eras: learning, earning, exploiting skills

35:10 • 4min

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Regret framework: what you'll regret later

39:23 • 3min

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Advice to younger self: form saving habits early

42:16 • 2min

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Raising kids: protection without fueling dependency

43:58 • 10min

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Spending reveals psychology and status signaling

54:01 • 15min

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Handling panics: avoid catastrophic collapse

01:08:56 • 4min

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Cash allocation and buying sleep at night

01:12:40 • 5min

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When to give inheritance and Die With Zero idea

01:17:17 • 6min

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Vanderbilts lesson: money can't buy character

01:23:15 • 9min

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Social groups, expectations, and contentment

01:32:27 • 7min

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What Morgan splurges on and authentic spending

01:39:32 • 2min

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Inflation and acceptance

01:41:48 • 2min

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Patience, teaching investing, and base rates

01:43:30 • 5min

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Index allocation: VTI and simplicity

01:48:56 • 5min

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Stay average long enough to win

01:53:29 • 12sec

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How Morgan deploys extra income

01:53:41 • 1min

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Success defined: not disappointing loved ones

• Mentioned in 273 episodes

Die with Zero

Bill Perkins

Die with Zero presents a provocative philosophy and practical guide on how to get the most out of your money and your life. Bill Perkins argues against over-saving and under-living, advocating for investing in experiences early and maximizing positive life experiences. The book introduces concepts like 'time-bucketing,' 'net worth curve,' and 'fulfillment curve' to help readers optimize their life stages and make the most of their resources. Drawing from his own life experiences and insights from psychological science and behavioral finance, Perkins makes a compelling case for living large and accumulating memorable experiences rather than wealth.

#45

• Mentioned in 234 episodes

The intelligent investor

Jason Zweig

Benjamin Graham

Written by Benjamin Graham, 'The Intelligent Investor' is a seminal work on value investing that has inspired millions since its original publication in 1949. The book emphasizes the importance of distinguishing between investing and speculation, calculating the intrinsic value of companies, and maintaining a margin of safety. The revised edition includes updated commentary by Jason Zweig, who provides modern examples and insights to help readers apply Graham's principles in today's market. Warren Buffett, a disciple of Graham, has praised the book as 'the best book about investing ever written'.

#339

• Mentioned in 72 episodes

Same as Ever

A Guide to What Never Changes

Morgan Housel

In 'Same as Ever,' Morgan Housel presents a master class on optimizing risk, seizing opportunity, and living a fulfilling life by focusing on what remains constant in a changing world. Through engaging stories and examples, Housel shows how understanding permanent truths about human behavior can help readers make better decisions and navigate uncertainties. The book emphasizes the importance of recognizing and adapting to timeless principles in finance, business, and personal life, rather than trying to predict specific future events.

#20

• Mentioned in 339 episodes

The Psychology of Money

Timeless Lessons on Wealth, Greed, and Happiness

Morgan Housel

In 'The Psychology of Money,' Morgan Housel delves into the psychological and emotional aspects of financial decisions. The book consists of 19 short stories that illustrate how personal history, worldview, emotions, and biases influence financial outcomes. Housel emphasizes the importance of behavior over knowledge in managing money, highlighting the power of compounding, the dangers of greed, and the pursuit of happiness beyond mere wealth accumulation. He advocates for a frugal lifestyle, long-term perspective, and a balanced approach to investing, stressing that financial success is more about mindset and discipline than about technical financial knowledge.

Morgan Housel breaks down the exact framework he uses to build wealth, minimize financial stress, and buy freedom.

While most financial advice focuses on how to get rich, Morgan explains why the skills needed to stay rich are completely different.

You will learn why "boring" investing beats complex strategies, how to avoid the social traps that destroy wealth, and the specific equation for finding contentment.

Morgan Housel is a partner at Collaborative Fund and the bestselling author of The Psychology of Money.

Enjoy!

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Approximate Timestamps:

(00:00) Trailer/Introduction

(00:58) What Drives You?

(04:50) What Can Money Do For Us?

(07:22) Happiness vs. Satisfaction

(11:45) Becoming Financially Independent

(14:40) Survival and Contrast

(20:16) Ad Break

(21:05) Investing: Can You Beat the Market?

(22:32) When Is The Right Time To Buy a House?

(26:45) Housing Affordability and Equity

(28:39) Step by Step Investing

(35:08) Eras of Life and Spending In Those Eras

(43:50) Raising Kids With Money

(48:46) Social Media: Expectations and Comparison

(55:46) Lessons From the Vanderbilts

(01:01:21) Learning From Others Spending Habits

(01:07:51) Lessons From History: Depressions, Panics, Downturns

(01:11:40) Net Worth in Cash

(01:14:20) Passive Income and Financial Independence

(01:25:58) Massive Success: Doing It All Again

(01:32:27) What Should You Optimize For?

(01:38:24) What Do You Splurge On?

(01:40:38) What Can History Teach Us About Inflation?

(01:47:46) Index Funds Allocation

(01:53:36) What Is Success For You?

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This episode of the Knowledge Project is for informational purposes only. The views and opinions expressed by Shane Parrish or our guests are solely their own. Nothing in this conversation should be considered investment advice, financial guidance, or a recommendation to buy or sell any security. Always do your own due diligence or consult with a qualified financial advisor before making investment decisions. It's time to listen and learn.

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Psychology of Money: https://geni.us/my3K

Morgan Housel X: https://x.com/morganhousel Website: https://www.morganhousel.com/

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