Transcript for:
Core Lessons from The Psychology of Money

In this audio book, we're going to break down the powerful ideas in the psychology of money by Morgan Hel. A book that won't tell you how to get rich quick, but will show you something even more powerful. How to build a healthy, lasting relationship with money. And what you're about to hear will completely change the way you think about saving, spending, risk, success, and even happiness. The psychology of money isn't a typical finance book. There are no complex formulas, no stock charts, and zero jargon. You don't need to be an investor or an economist to understand it because this book isn't really about money. It's about behavior, about people, about you, about us. You'll learn why the smartest choice on paper isn't always the smartest one in real life. Why luck and risk play bigger roles than we think and why managing money well isn't about knowing everything. It's about mastering a few key habits and sticking to them. This book breaks it all down through simple stories and real life examples. It's honest, it's relatable, and it's full of lessons that actually stick. Each chapter in this audio book is like a conversation with a wise friend, someone who's been there, made mistakes, learned from them, and wants to help you avoid the traps most people fall into. By the end of this audio book, you'll see money in a completely new light. Not as a number in your bank account, but as a tool for freedom, for peace of mind, for a life on your own terms. Stick around. You're about to go on a journey that could change not just how you manage your money, but how you think, act, and make choices every day. Let's dive in to the psychology of money. You're not just going to hear it, you're going to feel it. Chapter one. No one's crazy. Have you ever looked at the way someone spends money and thought, "What are they thinking?" Like someone blows half their paycheck on a luxury car, buy lottery tickets every week, or refuse to invest even though they've got money sitting in the bank. It seems crazy, right? But here's the thing. They're not crazy. In their world, based on their life experiences, what they're doing probably feels like the smartest move they can make. And once you get this, you'll stop judging others, understand your own money choices more clearly, and start to see finance through a whole new lens. Let's get into it. People don't make decisions based on facts. They make them based on feelings, on experiences, and the world they grew up in. Imagine two kids. One grows up during a recession, watching their parents lose jobs, stress over bills, and whispering at the dinner table about losing the house. And the other grows up during an economic boom, stocks going up, money flowing in, and vacations every summer. Now, fast forward 20 years. Do you think those two people will see money in the same way? Do you think they'll view risk in the same way? Do you think they'll invest in the same way? Of course not. They lived through completely different realities. One learned to protect every dollar. The other learned to take bold risks. So, it's no surprise that what seems smart to one might seem insane to the other. Here's something we often forget. You can read all the finance books in the world, but if you've never felt the panic of not knowing how to pay rent, if you've never stood at a grocery store line praying your car doesn't decline, then you'll never fully understand what money stress feels like. You can read all the charts and spreadsheets showing stock market crashes, but they can't show you what it feels like to come home. Look at your kids and wonder if you made a mistake that could hurt them. Emotions always beat data every time. We make money choices with our hearts, not just our heads. And here's something more wild. The year you were born can shape how you see money for life. For example, if you turned 20 in the 1990s, you saw the stock market skyrocket. You probably believe in investing. But if you turned 20 in the 1970s, the market went nowhere. Inflation was through the roof. You might think stocks are risky, even dangerous. It's not because one person is smarter than the other. It's just timing. And it's not just stocks, unemployment, interest rates, and even job opportunities. They all hit different people in different ways. You didn't choose when you were born, but it affects how you see the world and money forever. That's not fair, but it's very true. Let's make it even more real. Have you ever wondered why some low-income people spend money on lottery tickets? From the outside, it seems foolish. But try to step into their shoes just for once. Imagine living paycheck to paycheck. No vacations, no college savings for your kids. For them, buying a lottery ticket is the only moment they feel hope that maybe, just maybe, life could be different. It's not just gambling. It's buying a dream. You might not agree with it, but when you see it that way, it completely makes sense. The truth is, no one's crazy. We're all just telling ourselves different stories about money based on the lives we've lived. Whether it's investing, lotto tickets, or retirement accounts, we're all just trying to write a story that makes us feel safe, successful, and in control. And those stories come from experience, not logic. Think about it. Some people hoard. Some people spend fast. Some fear debt. Some ignore it, but it all makes sense when you know their backstory. Now, here's another important insight Morgan shares. Nobody really knows what they're doing. Retirement plans, credit cards, mutual funds, home loans, stock market apps. These are very recent tools. Just two generations ago, most people didn't even retire. They worked until they just couldn't. Retirement accounts. They didn't exist until the 1970s. Stock market apps. They've only been around since smartphones, barely old enough to vote, let alone drink. So, of course, people make mistakes. Of course, we mess up. Because we're all just figuring it out. We're not bad with money because we're careless. We're bad at it because we're new at it. You wouldn't expect a beginner driver to race Formula 1. Yet somehow we expect ourselves to be money experts. So what's the real lesson from this chapter? It's this. Everyone's financial decisions make sense to them. Even if they don't make sense to others, we all carry different experiences, different scars, different dreams, and those shape every money choice we make. And when you understand where someone's coming from, you don't just get better at managing money, you get better at understanding people, including yourself. So instead of asking why are they so irresponsible, start asking, "What story are they telling themselves?" And instead of beating yourself up over past mistakes, ask yourself, "What story was I believing at that time?" When you understand that, you start to make better choices, not just with money, but also with people. Coming up in the next chapter, you'll discover how one of the richest people on Earth got rich because of something totally out of his control. Stick around. You'll want to hear it. Chapter 2. Luck and risk. Picture this. Two people, same smarts, same hustle. One ends up in a mansion. The other files for bankruptcy. Why? What makes one person's decision seem brilliant and anothers look like a huge mistake? Here's the truth most people don't like to admit. Success is never just a skill, and failure is never just a mistake. Behind the scenes, two invisible forces are always at work. Luck and risk. In this chapter, we'll see how these invisible forces shape our financial lives, often in ways we don't even notice. And by the end, you'll never look at success or failure the same way again. Let's start with a story you probably haven't heard. We all know Bill Gates, right? co-founder of Microsoft, one of the richest people on Earth. He's a genius, right? But here's something surprising you might not know. In the 1960s, while most kids were scribbling on paper, Bill Gates was learning coding at school. That's right. His high school had a computer in the 1960s, long before most schools even heard of. He didn't build it. He didn't ask for it. It was just there. And so was he. Now imagine how rare that was. Out of hundreds of millions of high school students worldwide, only about 300 had access to a school with that kind of technology. And Bill Gates was one of them. And he used that access to explore, to learn, and eventually to start Microsoft. Was he brilliant? Definitely. Did he work hard? Absolutely. But would Microsoft have existed if he hadn't gotten that one in a million head start? Even Bill Gates admits without that once-in-a-lifetime access, there's a good chance Microsoft never would have existed. Now, on the flip side, meet Kent Evans. Kent Evans was Gates's best friend. He was just as smart, just as driven, just as passionate about computers. They dreamed of starting a company together. But one weekend, Evans went for mountain climbing and never came back. A slip, a fall, a tragic accident. And just like that, his future was gone, same drive, same dreams, same potential, but very different outcomes. All because of luck and risk. Luck and risk are like two sides of the same coin. They're the forces that are out of your control. They can push you higher or knock you down. And often they have more impact than intelligence, effort, or talent. Imagine two people start the same kind of business. Same timing, same effort, same everything. One becomes a huge success, the other goes bankrupt. From the outside, we usually say the successful one was a genius. And the one who failed made mistakes. But maybe the successful one got lucky, a big client, a surprise investor. And maybe the other one got hit with something totally unexpected, like an emergency or a health issue. Same initial decisions, but very different end results. All because of luck and risk. We don't like to admit that because luck feels unfair and risk feels scary, but ignoring them doesn't make them go away. It just makes us more likely to fall into the trap of false confidence and unfair judgment. If we only copy what worked for others without realizing how luck played a role, we might be chasing a blueprint that can't be replicated. And if we beat ourselves up over failures without realizing how risk played a role, we might be taking the blame for something we couldn't control. Here's another great example. In the 2000s, Richard Fusone, a former Meil Lynch executive, was living large. Huge mansion, luxury cars, fancy lifestyle, great reputation. From the outside, he had it all. But under the surface, he had one weak spot, debt, and a lot of it. And when the 2008 crash hit, he lost everything. Meanwhile, in a small town, Ronald Red, a gas station worker and janitor, lived quietly and saved consistently. No one noticed him until he passed away with over $8 million in savings. Two very different people, two very different outcomes. Not because one was smarter than the other, but because of luck and risk. Morgan Hel puts it this way. Success is a lousy teacher. It seduces smart people into thinking they can't lose. So when you win, don't let it go to your head. And when you lose, don't let it break your spirit. Sometimes it's not about what you did right or wrong. It's just luck or risk having its turn. So, here's the big lesson from this chapter. Be careful how you judge success. And even more careful how you judge failure because what we often call smart might just be lucky. And what we call stupid might just be unlucky. And speaking of luck, in the next chapter, we'll meet two people who pushed their luck too far and paid the price. It's eye opening. Stick around. You don't want to miss it. Chapter 3. Never enough. Picture this. You're lying on your couch, bills paid, fridge full, a little extra in the bank. You feel good, but your mind is racing, wondering, is it enough? Enough to stop worrying. Enough to finally feel happy. Enough to feel safe. Not just today, but forever. That voice. It doesn't get quieter when you earn more. It just moves the goalpost. Enough starts to feel like a mirage. The closer you get, the farther it drifts away. That's what this chapter is all about. The dangerous trap of always chasing more. We'll look into real stories of people who risked everything just because they didn't know when to stop. By the end of this chapter, you'll know how to avoid one of the biggest mistakes, which even the richest people fall into. Let's start with answering a simple question. Why is it so hard to feel like you have enough? Because as soon as you get more money, more status, or more success, you also start comparing yourself to people who have even more. And that comparison never ends. Let's look at a true story. Rajat Gupta, born into poverty in India, rose to become the CEO of McKenzie, one of the most powerful consulting firms in the world. He worked hard, rose to the top. He climbed the ladder rung by rung from dusty streets in India to sleek boardrooms in Manhattan. By his 50s, he flew first class, sat on company boards, shook hands with presidents. His net worth was over $100 million. He had respect, wealth, and influence, but surrounded by billionaires across the table. He still felt small. He wanted to be a billionaire, and he wanted it fast. So he passed along secret financial information to a friend at a hedge fund who used it to make millions. But soon the truth came out. He was arrested, sent to prison and lost everything. His career, reputation, legacy gone. All for what? More. More than he needed. More than he could ever spend. And Gupta wasn't the only one. History is full of people who risked everything for just a little more. Take Bernie Maidoff for example. Before he was exposed as one of the biggest frauds in history. He was already a successful businessman, a real one. He ran a legitimate firm. Made millions. He wasn't just rich, he was respected. He had more than most people could ever dream of. But even that wasn't enough. Instead of being satisfied, he created a fake investment scheme, lied to investors, and built a giant house of cards. At one point, he was managing billions of dollars in fake profits. And when the truth came out, it all collapsed. He lost everything and spent the rest of his life behind bars. Not because he needed more money, but because he wanted more. So, what's the lesson here? How Cell puts it simply to risk what you have and need for what you don't have and don't need is foolish. And yet, people do it all the time. Think about it. People with nice jobs want to become entrepreneurs just to earn more. People with big homes feel behind because their neighbors house is bigger. People with millions keep reaching for billions. There's nothing wrong with ambition because it's very human. But if the goalpost keeps moving, you'll never be happy. You'll always feel behind. Imagine you earn $100,000 a year. You live comfortably. You save a little. You travel every now and then. That's more than most people. You're doing well. But if your coworker earns $200,000, suddenly your enough doesn't feel like enough anymore. So you work harder, push the limits, take bigger risks, and the cycle keeps going. This is social comparison, and it's everywhere. Your coworker might compare himself to someone making $1 million. That millionaire might compare himself to a hedge fund manager. And the hedge fund guy, he might compare himself to Warren Buffett. And Buffett, he might glance at Elon Musk, see how the ladder never ends. There's always someone above you. And if you keep climbing just to catch up, you may never stop. That's how social comparison works. It tricks you into thinking you're missing something, even when you're not. Think of it like eating at a buffet. You fill your plate and you're full. You feel good, but then you see someone else grabbing lobster tail and imported cheese. Now you feel like you're missing out, so you go back for more. Now you're stuffed. You feel sick. You regret it. Why? Because you didn't stop when you had had enough. You let someone else's plate decide what you need. Here's the big lesson from this chapter. Knowing when you have enough is one of the most powerful money skills you can learn. It helps you avoid taking risks that could ruin everything you've already built. It helps you stay focused on what really matters. So, the next time you catch yourself chasing more, more money, more stuff, more approval, stop and ask yourself, "Do I already have enough to live the life I want?" If the answer is yes, maybe the smartest move isn't to speed up, but to slow down, to look around, to realize the view from where you are might already be beautiful. Sometimes the richest people aren't the ones with the most. They're the ones who know when to stop. So remember, when you define your own enough, you stop letting comparison control your life. Coming up in the next chapter, we'll talk about a secret superpower that helps build real wealth, and it has nothing to do with luck or income. It's something so simple, yet most people overlook it. Stick around. This one is a gamecher. Chapter 4. Confounding compounding. What's the most powerful force in building wealth? A big paycheck? A genius investment strategy? A once-in-a-lifetime business idea? Nope, not even close. It's actually something you already have access to. And it's not flashy. It's not exciting. In fact, it's kind of boring, but it works. like magic. Morgan Hel calls it confounding compounding. And in this chapter, we're going to talk about why this boring, quiet little force is actually the secret behind massive success stories. Let's start with a name you definitely know. Warren Buffett, one of the richest people alive, a legend in the world of money. But here's the part most people don't talk about. Yes, Buffett is a smart investor, but what really made him rich is how long he's been investing. He's been trading stocks since he was just 10 years old. And by the time most people are just learning what a stock is, Buffett had already been growing his money for decades. Now, here's the crazy part. More than 90% of Warren Buffett's wealth was made after his 65th birthday. Yes, after age 65. That's not because he found some secret trick late in his life. It's because compounding had finally kicked into higher gear by then. His investments had decades to grow. That's how compounding works. It's not just how much you earn. It's how long you let it grow. Think of compounding like a snowball. You roll a small one down a hill. At first, it's slow. It barely grows. But with each turn, it picks up more snow, then more, then even more. And by the time it reaches the bottom, it's a beast. Not just because of snow, but because of momentum. That's how money grows through compounding. Your savings earn a little interest. Then next year, that interest earns interest. And the cycle keeps going. At first it looks small, but over time the growth becomes so big it feels unbelievable. That's why Hel calls it confounding because the results are so huge they don't even seem to make sense at first. But here's the problem. Most people give up too early. They save for a few years and think this isn't doing much. So they stop. They pull their money out or they jump into something faster, shinier, or riskier. But compounding, it's slow. It's all about time. It rewards patience, not perfection, not fancy strategies, just consistency. We live in a world that loves quick wins, instant likes, sameday delivery, 5minute meals, crash diets, viral trends. We're wired for right now, but compounding, it doesn't care about now. It plays the long game. Let's go back to Warren Buffett again. If he had started investing at age 30 instead of age 10, or if he had retired at 60 instead of continuing into his 90s, would he still be rich? Probably. But would he be Warren Buffett? Definitely not. His real superpower isn't just his skill. It's his time in the game. Buffett isn't just good. He's been good for a very, very long time. And here's the best part. You don't need to be a billionaire to use this. You just need to start early, be consistent, and stay in the game. Whether it's $5 a week or $500 a month, what matters is you just keep going. So, here's the big takeaway from this chapter. The most powerful tool in wealth building isn't luck or brilliance. It's time. It's patience. It's letting the snowball roll. Compounding rewards people who stick with it. Not for weeks, not for months, but for years. Compounding may look slow at first, but once it gets going, it's unstoppable. The earlier you start, the longer you stay consistent, the bigger the results. You don't need a perfect plan. You just need to give it time. Whether you're saving coins in a jar or investing small amounts every month, stick with it. Trust the process. Let your money roll like that snowball because the longer it rolls, the bigger your future gets. Coming up in the next chapter, we go beyond building wealth. Because getting rich is one thing, but staying rich, that's where most people fail. Stick around. It's one of the most important lessons in the entire book. Chapter 5. Getting wealthy versus staying wealthy. What's harder, getting rich or staying rich? At first, it sounds like the same game. But Morgan Houseel says they're actually two completely different skills. Getting rich that takes ambition, risks, big swings. It's about attack. It takes guts. You invest in bold ideas. You start businesses. You say yes to chances most people walk away from. But staying rich, that's a different game. It's about defense. survival caution. It's not about the biggest return anymore. It's about not losing what you've already earned. Think of it like playing poker. At the start of the game, you make big bets, you bluff, you raise, you play bold. But when you've got a mountain of chips in front of you, do you still go all in every hand? Of course not. because now you've got more to lose. The strategy changes. Now it's no longer about winning more. It's about not blowing at all. Morgan tells the story of Jesse Livermore, one of the most famous stock traders of the early 1900s. During the 1929 market crash, while most people lost everything, he made billions of dollars by betting against the market. He was a legend, confident, feared, respected. But here's what happened next. He didn't stop, didn't shift gears, didn't protect what he built. Instead, he made bigger and riskier bets. And he lost everything. All of it. That's the danger of not knowing when to shift gears from building to protecting. Imagine this. You build a beautiful house, brick by brick, blood, sweat, and savings. It takes you years. Would you light fireworks inside it? Would you leave the doors wide open in a storm? Of course not. But that's what some people do with their money. They gamble with what they've worked so hard to create, chasing more than they'll ever need. So, what does it take to stay wealthy? Morgan says it comes down to three traits. Number one, frugality. Living below your means. Even when you can afford more. Number two, humility. Knowing you're not invincible. Markets can change. So can your luck. Number three, a healthy dose of fear. Not the kind that paralyzes you, but just enough to keep you from making reckless moves. Protecting your money is like protecting your home. It's not exciting, but it matters. Sometimes the smartest move isn't to grow faster. It's to protect what you've already built. Because you can spend your life building wealth and lose it in one bad bet. You can build a fortune in years and watch it disappear in minutes. That's why staying rich matters just as much, if not more, than getting there. So, here's the big takeaway from this chapter. Getting rich and staying rich are two different games, and you need to master both. Getting rich takes bravery. Staying rich takes caution. It's about balance. Knowing when to sprint and when to slow down. Knowing when to chase the next big thing and when to protect the good thing you already have. Sometimes the smartest move isn't to go faster. It's to pause, breathe, and say, "I've built something worth keeping, and I'm not going to risk it just for more." So, take smart risks. But when you've built something worth keeping, make sure you hold on to it. Build bold, protect wisely. That's the real wealth strategy. Coming up in the next chapter, we'll talk about one of the biggest myths in finance that you need to win over and over again. But what if getting rich only takes one win and that could be enough for a lifetime? Stick around. It's one of the most eyeopening chapters in the entire book. Chapter 6, Tales. You win. Imagine flipping a coin over and over again. Heads, heads, heads. You keep losing and then tails, you win. That's how success often works. You see someone winning and it looks like magic. But what you didn't see were all the times they failed, tried, missed, got back up, and tried again. Here's what Morgan Howel wants you to know. You don't need to be right all the time. You just need to be right every now and then. That's what this chapter is all about. Let's start with a simple truth. Most things don't work out in business, investing, and life in general. Ideas fail. Projects flop. Plans fall apart. People let you down. And that's how life is. But every now and then something clicks and when it does that one win can make up for everything else. Howell calls these rare wins tail events. The kind of events that may be rare but have a massive impact when they do happen. Take Apple for example. They've released hundreds of products over the years. Some were okay, some totally flopped. But then came the iPhone and it completely changed the company's future. Apple went from just another tech brand to one of the biggest companies in the world. Not because everything they did worked, but because one thing did. The other products, they played their part, but none came close to the impact of the iPhone. That's the power of a tale event. And this doesn't just happen to giant companies. It happens in real life, too. your life. Think about it. One new friend changed your whole social circle. One job offer led to a brand new career. One move to a new city totally changed your path. Those are your tail events. Maybe 95% of what you tried didn't work. But that 5%, that job, that idea, that person, it made all the difference. So, here's what Morgan's actually saying. Don't expect every effort to pay off. In fact, expect most things to fail and be okay with that. That's how the process works. What matters is that you keep trying. You keep exploring. You keep showing up. So, when that one rare moment comes, you're ready. But the problem is people give up too soon. They try something once or twice. it doesn't work. They quit. They think, "Maybe I'm just not cut out for this." But here's how people become successful. At first, they fail over and over again. And then boom, one moment hits. One idea works. One tail event shows up and suddenly they're not a failure anymore. They're a genius. Let's take a quick example from sports. Michael Jordan missed over 9,000 shots in his career, lost almost 300 games, failed to make the game-winning shot 26 times, and yet he's remembered as one of the greatest basketball players of all time. Why? Because he stayed in the game long enough for his tail events to happen. Success doesn't come from being perfect. It comes from not quitting before your tail event happens. So, here's the big takeaway from this chapter. Most of your success will come from just a few key moments. You don't need to win all the time. You just need to win big every now and then. Don't let small failures take you out because your next big win could be just around the corner. So be patient, take smart risks, try new things, learn from the misses, and most importantly, stay in the game. Because when the moment comes, when life flips the coin just right, tails, you win. Coming up in the next chapter, we'll talk about something far more valuable than money. Stick around. You don't want to miss this one. Chapter 7. Freedom. Imagine this. You wake up when your body says it's time, not your alarm. You stretch. You take your time with breakfast. Maybe you go for a walk, spend time with your family, read, or just sit and think. And the best part, no one is rushing you. No one owns your schedule. That is freedom. Now compare that to how your most days actually feel. Waking up to an alarm, rushing through traffic, days that don't feel like yours. That contrast between what you want and what you live. That's what this chapter is all about. Let's start with a question. If someone handed you a million dollars right now, no strings attached, what would you do with it? Buy a mansion, a luxury car, book a dream vacation. Sure, those things sound amazing. But here's what Morgan Hel wants you to understand. The most valuable thing money can buy isn't stuff. It's control. It's the power to say, "I'll do what I want, when I want, with whom I want, for as long as I want." That is real wealth. The ability to control your time. That's it. Not having the most money, not having the most stuff, not chasing status, not showing off, just choice. The choice to wake up in the morning and decide how you'll spend your day. The choice to work less. The choice to say no without guilt. The choice to walk away from what doesn't feel right. The choice to spend your day how you want, not how someone else demands. Think about this. Why do people dream about retiring early? Why is remote work so popular? Why do millions of people want to be their own boss? It's not just about earning more money. It's about owning more of their day. It's about freedom. The freedom to take your kid to school. The freedom to nap in the afternoon. The freedom to turn off your phone and no one panics. The freedom to say no to what doesn't matter and yes to what does. And believe it or not, that simple feeling, that control over your time, this is what most people are actually chasing, even if they don't realize it. Think about it. What would your days look like if you had total freedom over your time? That image is your real financial goal. Let's look at a quick comparison. Two people, one makes $500,000 a year, but works 80 hours a week and can't take a vacation without checking emails. The other earns $50,000 a year, works 30 hours a week, and takes days off to hike with their kids. Now ask yourself, who's really wealthier? Real wealth isn't just measured in dollars. It's measured in time. The time you control, the time you can't get back. We live in a world where we're always on. Emails, notifications, deadlines, hustle. Busy has become a badge of honor. But deep down, most people aren't chasing more and more. They're chasing space. They want to breathe. They want the freedom to live life on their own terms. And the good news is you don't need to be rich to have that freedom. You just need to value time over status. Here's a moment from Morgan's own life. He once asked a wealthy friend, "What's your ultimate financial goal?" And the friend didn't say a yacht or early retirement. He said, "I want to wake up every day and say I can do whatever I want today. No schedule, no boss, no pressure." And that feeling, that is real wealth. So, here's the big takeaway from this chapter. The real goal of money isn't to look rich. It's to buy time and control. You don't need millions in the bank. You just need enough to make choices that feel like you. Enough to walk away from what drains you. Enough to say yes to what lights you up. Enough to live in a way that aligns with your values. Freedom might not show up in your bank account, but you'll feel it in your calendar, in your mornings, in your peace of mind, in your smile. Coming up in the next chapter, we'll dig into why trying to impress others with money rarely works and often backfires. Stick around. You'll want to hear this one. Chapter 8. Man in the car paradox. Ever seen someone in a brand new luxury car and thought, "Wow, that person must be killing it." Be honest. We've all had that thought. But here's the surprising part. According to Morgan Howell, the person driving that car doesn't get the admiration they think they're getting. Why? Because most people aren't thinking about them. They're imagining themselves driving that car. And chances are you've done it, too. That disconnect between what we think others are admiring and what's actually happening. That's what Morgan calls man in the car paradox. And once you understand it, it'll totally shift how you think about wealth, success, and how people actually see you. Let's dig into it. We believe a fancy car, a big house, or expensive clothes will earn us admiration. But in reality, people just admire the thing, not the person. Picture this. You're walking down the street and see someone driving a bright red Ferrari. It's fast. It's loud. It turns heads. Now, be honest. Are you thinking, "That person must be incredible." Or are you thinking, "I wish I could drive that car." See the difference? You're not admiring the person. You're admiring the car and picturing yourself behind the wheel. And that's the paradox. The admiration doesn't go to the person who owns the thing. It goes to the thing itself. And that's the problem. Because so many people spend money on things, not just because they want them, but because they want to be seen in a certain way. They think if I wear this, drive this, live here, people will think I've made it. people will respect me more. But according to Howell, people don't admire you as much as you think. Most of the time, they're too busy thinking about themselves. Let's say you walk into a room wearing a designer jacket. You're hoping people will think, "Wow, that person is successful." But what they're really thinking is, "Could I pull off that look? Would I ever wear that? Would that look good on me?" They're not admiring you. They're running a mental slideshow about their own life. We overestimate how much people notice or care about what we wear, drive, or own. Because truthfully, we all spend way more time thinking about ourselves than others. And this mindset, it shows up on social media, too. We post pictures of vacations, new gadgets, luxury dinners, thinking people are going to love this. But most people, they're just scrolling, comparing, daydreaming, wondering if they could ever have what you're showing off. It's not about you. It's about them. And it's not wrong. It's just human nature. So, here's what Morgan wants us to remember. The most admired people usually aren't the ones trying to be admired at all. They're kind. They're humble. They treat others well. And that's what earns real respect. Not the car, not the jacket, not the curated Instagram feed. So, here's the big takeaway from this chapter. Trying to impress people with money usually backfires. You think people will admire you, but in reality, they admire the thing or imagine having it themselves. If you want true respect, focus less on showing off what you have and more on being someone worth admiring. Generosity, kindness, humility. These are the qualities people remember. Because in the end, the goal isn't to make people jealous. It's to earn their respect. Be someone worth admiring, not someone worth envying. And coming up in the next chapter, we'll talk about a type of money that doesn't show up in Instagram posts. Stick around. This one is going to change the way you look at wealth forever. Chapter nine. Wealth is what you don't see. When you think of someone wealthy, what do you picture? A mansion on a hill, a Ferrari pulling into the driveway, a wristwatch that costs more than your car. It seems obvious, but here's the twist. Those things don't actually show wealth. They show how much wealth was spent. In other words, the real sign of wealth isn't what people show off, it's what they don't. And that's what this chapter is all about. Let's dive in. Most people confuse wealth with richness. They see someone spending a lot of money and assume they do have a lot of money. But in reality, wealth isn't about what you buy. It's about what you keep. It's not an expensive car or the big vacation. It's the money sitting quietly in a savings account or growing inside an investment portfolio. It's the financial freedom you don't post on Instagram. It's the peace of mind you don't wear on your wrist. Wealth is invisible. Let's say someone buys a $10,000 watch. You see the sparkle, the brand, the attention it gets, and you think that person must be doing really well. But what you're really seeing is $10,000 gone, spent, used up, not saved, not invested, no longer growing. That money isn't working for them anymore. it's sitting on their wrist. Now, compare that to someone who wears a basic $50 watch, but quietly has hundreds of thousands of dollars invested. Now, ask yourself, who's actually wealthier? Exactly. It's the one you'd never even suspect. Here's the trap most people fall into. We think spending is proof of success, but often spending is just proof that you had money, and now you don't. We show off the new car, the vacation, the fancy dinner. But Morgan reminds us spending money to show people how much money you have is the fastest way to have less of it. Why? Because real wealth, the kind that creates freedom, peace of mind, and security, is often completely invisible. It's not about showing off. It's about building something solid behind the scenes. Because every time we trade dollars for impressions, we're giving away what could have been freedom. Let's say your neighbor gets a brand new SUV, top-of-the-line, shiny, sleek, loud. Looks impressive, right? But maybe they're buried in debt. Maybe that car loan is eating half their paycheck now. Across the street, another neighbor drives a 10-year-old Honda. No upgrades, no attention, but they're debtree. They've been saving and investing for years, and if they lost their job tomorrow, they'd be fine. You'd never guess. But they have real financial strength. Social media makes this even trickier. We post the new shoes, the expensive meal, the weekend getaway. But when's the last time someone posted their savings account, their investment portfolio, the mortgage they just paid off? But why not? Because true wealth doesn't get likes. But guess what? Those are the real flex. Not the stuff you show off, but the quiet decisions that build true financial security. So here's the big takeaway from this chapter. Wealth is what you don't spend. It's savings. It's investments. It's security and freedom, not stuff. and the strongest kind of wealth. You'll never even notice it because it's working silently behind the scenes. And coming up in the next chapter, we'll dive into a concept that seems too simple to matter, but Morgan says it's the most powerful habit in the entire game of money. Stick around because what's coming next could quietly change everything. Chapter 10. Save money. Have you ever saved up money for something big only to end up spending it on something completely different? Or maybe you saved for an emergency, but the emergency never came. And in those moments, you might have wondered, "What's the point of saving if I never end up using it?" Well, Morgan has a powerful answer. The purpose of saving money isn't always to spend it. Sometimes it's just to give yourself options. And in this chapter, he explains why saving, even without a specific goal, might be the smartest financial move you'll ever make. Let's break it down. We're usually taught to save for specific things. A house, a car, a vacation, and those are all good reasons. But Houseel says that kind of saving can be too narrow because life it's unpredictable. It doesn't follow a script. Emergencies happen. Opportunities pop up when you least expect them. And if all your money is tied to a single purpose, you don't have the flexibility to adapt. Think of saving money like building yourself a safety net. Not because you're planning to fall, but because life doesn't ask before it throws you off balance. Let's say your car breaks down or you lose your job suddenly or a once-in-a-lifetime opportunity shows up and you want to grab it. And if you've been saving not for a thing but just because, then you're ready. You don't have to panic. You don't have to borrow. You don't have to miss out. You just act with confidence. That's the power of saving without a reason. Morgan calls this one of the most powerful habits in personal finance. Why? Because it gives you flexibility. It gives you time. It gives you space. And it gives you something most people crave but rarely have. Control. Control over how you respond. Control over what you walk away from. Control over what you walk toward. Let's put it another way. Having money saved with no set goal is like having quiet confidence. You're not showing off. You're not flashing it around. But deep down, you know you can handle whatever comes your way. And that kind of quiet strength, that's real wealth. And Morgan puts it simply, saving without a specific goal isn't pointless. It's powerful. It's the money that says you'll be okay. Not because you've predicted the future, but because you've prepared for it. So, here's the big takeaway from this chapter. Save money even when you don't have a reason to. Save because it gives you options. Because it gives you peace of mind. Because it puts you in control when life throws you a curveball. Save because when the unexpected happens, and it always does, you'll be ready. Not scrambling, not stuck, but steady and in charge. Coming up in the next chapter, we'll talk about something we all struggle with. The pressure to get everything right, to always make the perfect financial move, to never mess up. But what if you don't have to be perfect? What if good enough is actually enough? Stick around because the next chapter might just take that pressure off. Chapter 11. Reasonable, greater than rational. Have you ever made a money decision that didn't technically make sense, but just felt right? Like paying off a loan early even though the interest was super low, or keeping more cash in your savings account, even though everyone says you should invest it? If that sounds like you, you're not alone. This chapter explains why being reasonable, meaning doing what makes sense for you, even if it's not mathematically perfect, is often better than being perfectly rational. Let's start with what rational really means. To be rational is to make decisions that give you the highest possible returns. It's the kind of thinking economists love. It's the textbook way to handle money. But here's the problem. We're not robots. We're humans with emotions, with goals, and with different definitions of what success even means. That's why being reasonable, doing what helps you sleep at night, can sometimes be the smarter choice, even if it's not mathematically perfect. Let's say you have a mortgage with a super low interest rate. Technically, a rational person might say, "Don't pay it off early. Invest that money instead." That would be the rational move. But maybe that debt keeps you up at night. Maybe it feels like a weight on your chest. Maybe you feel safer being 100% debtree. So you pay it off anyway. That's not irrational. That's reasonable. And that matters. Here's the key point Morgan emphasizes. The best financial plan isn't the one that looks perfect on paper. It's the one you can stick to for years. Because if a plan that looks great on a spreadsheet but stresses you out in real life, you probably won't stick to it. But a good enough plan you feel good about, you'll stick with it. And that's what really matters. Think of it like working out. Sure, the perfect workout plan might be the one backed by science and data, but if it's too strict, too intense, or too complicated, you'll quit. A good enough plan that fits your lifestyle. That's the one that works. The same goes for money. You don't need the best strategy. You only need that makes sense for you. Maybe you keep more cash than experts recommend. Maybe you invest a little more conservatively. Maybe you stick with a simple strategy. But if that helps you sleep better, stay consistent, and stay in the game for decades, that's not a weakness. That's wisdom. Morgan puts it like this. Reasonable may not win you debates at dinner parties, but it wins in real life. If a decision helps you stay calm, avoid panic, and keep going, that's the right decision. This is why Hel says it's okay, even smart, to let emotion play a role in your financial decisions. Because at the end of the day, money isn't just about numbers. It's about feelings. It's about what gives you peace of mind. So, here's the big takeaway from this chapter. You don't need a perfect financial plan. You need a plan that makes sense for you. Your financial plan doesn't have to be optimized for maximum return. It just has to be right for you. If it gives you confidence, if it keeps you moving forward, if it helps you sleep at night, that's a great plan. Don't chase perfection. Aim to be consistent. Aim to be calm. Aim to be reasonable. And coming up in the next chapter, we'll talk about something even the best plans can't predict. Stick around. This one is eyeopening. Chapter 12. Surprise. Morgan says, "When it comes to money, it's not the planned events that shape your life, but the ones you never expected." And that's what this chapter is all about. Let's get into it. Picture this. It's 2007. The housing market is booming. Banks are flying high. People feel rich. But then crash. The 2008 financial crisis hit. Billions lost. Jobs gone. Retirement plans shattered. Almost no one saw it coming. But it changed everything. Same with the COVID 19 pandemic. One day, normal life, the next surprise. Lockdowns, market crashes, toilet paper shortages. History is full of these surprise moments. Things that nobody predicted but changed the course of everything. Think about it. Rise of the internet, 9/11, the dot bubble, Bitcoin, artificial intelligence. Almost no one saw them coming. But each one reshaped the world in ways we're still feeling today. Take 911 for example. It changed global economies, travel, national security, and so much more. But how many financial models had a terrorist attack factored in? Almost none. Or look at the.com bubble in the late '90s. In the beginning, it created huge wealth out of nowhere and then wiped it out. That's the thing about the future. It's always full of surprises. And because the future is so unpredictable, Morgan Howell argues we need to rethink how we look at history, too. Why? Because most of history is shaped by outliers, not averages. Most of the time things are normal, but every so often something big happens. Howel calls them tail events. They're rare, they're powerful, and they change everything. So, if your plan only works when things go normally, it's not strong enough. If you don't account for these kinds of surprises in your financial thinking, you end up overconfident, unprepared, or even misled by what the past seems to say. In other words, just because something hasn't happened before doesn't mean it can't happen tomorrow. So, what's the lesson here? Don't expect the future to look exactly like the past because the past didn't see the future coming either. Let's say you're planning for retirement. You look at market averages, past returns, and typical inflation rates. Seems smart, right? But if you don't leave some room for unexpected stuff like a sudden illness, job loss, or market crash, your perfect plan can fall apart. That's why Houseel says, "Don't try to predict surprises, just prepare for them." So, how do you prepare? Here's Morgan's advice. Build flexibility into your plans. Expect the unexpected. Leave room for error. and be okay with not knowing everything because no one does. No one has all the answers, especially when it comes to the future. Life is unpredictable. Markets are messy. The world changes fast. But if your plan includes flexibility, if you expect the unexpected, you don't have to fear surprise. You'll be ready. Not perfectly, but enough. And sometimes that's all you need. So, here's the big takeaway from this chapter. If your financial plan doesn't make room for surprises, it's not a real plan. It's a fantasy. The future is full of surprises. You can't predict them, but you can prepare. Don't build your life around certainty. Build it around resilience. Plan with confidence, but leave room for chaos. so that when the unexpected comes, and it will, you'll be standing and ready to move forward. Coming up in the next chapter, we're going even deeper on this idea. We'll talk about how a little cushion, a little slack in your plan can protect you from financial disaster. Stick around. The next chapter can save you from a costly mistake down the road. Chapter 13. Room for error. Have you ever made a plan that felt airtight? You ran the numbers, checked your calendar, everything lined up just right. But then boom, one small thing goes wrong and the whole plan falls apart. Life rarely goes according to plan. Surprises happen. Mistakes happen. And when they do, people who thrive aren't the ones with perfect predictions. They're the ones who left room for error. And that's what this chapter is all about. Let's dive in. Imagine this. You're catching a flight. You leave your house just in time to get to the airport, but there's an accident on the highway. Now you're stuck. You missed the flight. Why? Not because you made a bad decision, but because you built a plan that only worked if nothing went wrong. And that's the danger. Now apply that to your finances. If your budget, your savings, or your investment plan only works when everything goes right, you're just one bump away from trouble. Because here's the truth. Life doesn't follow scripts. It throws curveballs. Jobs get lost. Markets crash. Unexpected bills pop up. And it's not the surprise that makes you fail. It's having no room to recover. So what is room for error? Howel puts it simply, always plan for things not to go according to plan. You can make all the right decisions and still get the wrong outcome simply because life is unpredictable. It's not about being negative. It's about being prepared. It's saying, "What if I'm wrong? What if life happens? Do I have a cushion or am I walking a tight rope?" Think of it like your phone battery. You don't wait until it hits 1% before charging it. You plug it in when it's still at 20 or 30 because you know something might come up. And that's what room for error does for your money. It's your financial battery life. And in a world where surprises are guaranteed, it's what keeps you going. That's the power of room for error. It gives you breathing space when life doesn't follow the script. Even the smartest investors, the best business leaders, the most careful planners get hit with bad luck sometimes. Markets crash, jobs disappear. Emergencies happen. But what separates them from the rest is they left space. They built slack. They didn't chase perfection. They planned for chaos. That's not fear. That's life. And what matters in life is whether you've built a buffer into your plan. That buffer could be an emergency fund, living below your means, a second source of income. It's not flashy. It's not exciting, but it's incredibly effective because when something goes wrong, you won't panic. You'll adjust and keep going. So, here's the big takeaway from this chapter. Success doesn't come from being right all the time. It comes from being ready when you're wrong. Leave space in your plans. Save more than you think you need. Expect some bumps in the road. Build cushions into your budget, your schedule, and your mindset. Not because you're scared, but because you're smart. Room for error isn't a backup plan. It's the foundation of every strong financial strategy. And coming up in the next chapter, we're delving into something that will help you understand your future self a little better. Don't miss it. Chapter 14. You'll change. Have you ever looked at your old social media post and thought, "I can't believe I used to think that way." Or maybe you saved up for something you thought you really wanted, only to realize later you didn't care about it anymore. Or just think back to who you were 5 years ago. What music did you love? What were your goals? What did you believe about success? Now, how many of those things are still true today? Chances are, a lot has changed. And yet, we make decisions, sometimes big ones, based on who we are right now, forgetting that future you might want something totally different. And that's what this chapter is all about. Let's get into it. We make all kinds of plans. Careers, savings, retirement, even how we'll spend our free time. And when we do, we usually assume one big thing. That the person we are right now will be the same in 10, 20, or 30 years. But here's the truth. People change. You will change. And that change, it's hard to predict and even harder to plan for. Morgan Howell calls it the end of history illusion. It means we understand how much we've changed in the past, but we somehow assume we'll stay the same from here forward. And that assumption, it's a problem because it leads us to make rigid long-term plans for a future version of ourselves we don't even know yet. Let's say you're 25 and you start planning and dreaming about what you'll want at 55. retirement on a beach, a fancy car, maybe a home spa. But here's the catch. That 55year-old version of you might want totally different things. Like not a beach house, but time with grandkids, not luxury, but peace, not more stuff, but more meaning. So if your plan only fits who you are today, future you might feel trapped in a life that doesn't fit you anymore. Hel isn't saying don't plan. He's saying your plans should have flexibility built in. Don't assume you'll always want what you want now. Leave space to change your mind, to shift directions, to grow. If you acknowledge that your goals, interests, and values will probably shift. You give yourself the power to adapt. You don't have to get it all perfectly right today. You just have to leave room to adjust. Because the person you'll be in five, 10, or 20 years, is a stranger you haven't even met yet. This is why chasing big flashy goals just because they look good today can backfire. That dream car, that perfect vacation, that massive house, they might not matter to you in 10 years. And if you spent years chasing them only to realize they don't make you happy, that's a hard pill to swallow. So here's the big takeaway from this chapter. You're going to change. And that's not a problem. That's human. So plan for change. Expect it. Make room for it. The person you are today won't be the same person you'll be in the future. So make financial plans that are strong but flexible. Save broadly. Invest wisely, but don't lock yourself into a life path that can't evolve with you. Create a financial life that's strong enough to support you now and flexible enough to support whoever you become later. Build space for growth. Make peace with change because the best financial plan is one that's ready to serve the future version of you, even if you haven't met him yet. And coming up in the next chapter, you'll find out why nothing comes without a cost. The price isn't always obvious, but it's always there. Stick around because what's coming next will change the way you see everything. Chapter 15. Nothing's free. Have you ever stared at a falling market graph and thought, "Is it worth it? The nights I can't sleep. The mornings I wake with a knot in my gut." You're not alone. Because when it comes to money, like most things in life, nothing is free. But the price you pay doesn't always show up on a price tag. Sometimes it comes as stress. Sometimes there is uncertainty. And sometimes it demands patience. And in this chapter, we'll talk about why recognizing and being willing to pay those hidden prices is actually the secret to build long-term wealth. Let's start with how we usually think about cost. We go to a movie, we pay for the ticket, we go to dinner, we pay the bill. When we think about cost, we usually picture money bills. But when it comes to investing or building wealth, the price is different. Instead of paying with money, you pay with time. You pay with doubt. You pay with emotional ups and downs. And most people, they don't see that part coming. Let's take investing in the stock market for example. There's no upfront fee just to invest. But the real cost, it's the stress of watching your portfolio drop. It's staying calm during a recession. It's holding steady when everyone else is panicking. It's the anxiety of not knowing what comes next. That's the price of building long-term wealth. And if you're not ready to pay that price, you might cash out right before your biggest gains. Think of it like a roller coaster. You pay for the ride and you hang on for the wild part, but once you're strapped in, the highs and lows are part of the ride. It's no different with money. Volatility, risk, and uncertainty aren't signs of something going wrong. They're the price of being in the game. And here's where most people make a mistake. They treat that emotional cost like a fine, like it's a penalty for doing something wrong. But Househill says, "Don't think of it as a fine. Think of it as a fee. A fee is what you pay to access something valuable. It's not a punishment. It's just the cost of admission. And once you see it that way, you stop panicking because you know it's just a part of the deal. So next time when the market dips or your savings feel slow to grow or your progress feels frustrating, remind yourself this is just the fee. Because that fee, it's the toll you have to pay to cross the bridge to financial freedom. You're not off course. You're just paying the price that success demands. So here's the big takeaway from this chapter. Nothing in life is free, especially not success. Whether it's building wealth, growing investments, or chasing your goals. There's always a price, but the price isn't always money. Sometimes it's patience. Sometimes it's discomfort. Sometimes it's fear. And sometimes it's staying on the course when things get tough. The real question isn't whether there's a cost. It's this. Are you willing to pay it to get what truly matters? And if you are, the long-term rewards are absolutely worth it. Coming up in the next chapter, we will find out why trying to keep up with others can lead you off your own financial path. Stick around. It's one of the most eyeopening chapters in the entire book. Chapter 16. You and me. Why is it that one person panics and sells everything during a market crash while someone else just sips their coffee and keeps on investing? Or why your friend is all in on crypto while you're just focused on keeping things simple? Well, Morgan has an answer. It's because we're all playing different financial games. And when you compare yourself to others without understanding their goals or timelines, it can lead you to make some really bad money moves. And this chapter is all about how to avoid falling into those traps. Let's get into it. Everyone handles money differently because they have different goals, different timelines, and different rules. Some people are day trading to make a quick buck, while others are investing for the next 30 years. Some are building generational wealth, while others just want to retire early, and some are simply trying to stay out of debt. That's why copying someone else's strategy without knowing their goals can be dangerous. There's no oneizefits-all. You can't win your game if you're following someone else's rules. It's like trying to use chess moves in a basketball game. It just doesn't work. Imagine you're running a marathon. You've trained. You have a plan. You're pacing yourself. But suddenly, someone sprints past you. Do you chase them? Of course not, because you don't know if they're running a 5K or just sprinting to the water station. If you follow them, you'll burn out long before your race is over. It's the same with money. If someone buys a fancy car, flips a stock, or brags about a big win, it might look flashy, but they could be sprinting a race you're not even running. Social media makes this even harder. You scroll through Instagram or Tik Tok and see someone just bought their dream home at 25. Someone else retired early. Someone made six figures in one stock trade. And you start thinking, am I falling behind? But what you don't see, the risks they took, the debts they carry, the failed trades they don't post about. And when you compare your life to someone else's short-term win, you might end up making a decision that feels good now, but hurts you later. It's like wearing their shoes to run your race, but they might just not fit. Morgan reminds us, it's not about making the most money. It's about making money in a way that works for you. That means understanding your goals, your values, your timeline, and your risk tolerance. That's your financial fingerprint. As unique as your DNA, no one else has the exact same mix. This is why understanding the context matters so much. So before you follow someone's advice or try to match their results, ask yourself, are we even playing the same game? because if you're not, their strategy might win for them, but it could set you up for failure. So, here's the big takeaway from this chapter. Don't let someone else's choices distract you from your own plan. Don't compare your pace to someone else's sprint. Don't chase a goal that doesn't match your life. Instead, define your game, understand your plan, and play to your strengths. Because true financial success, it's not about beating others. It's about staying in the game long enough to win your own version of it. And coming up in the next chapter, we'll explore why we trust bad news more than a good advice. This one is eyeopening. Don't miss it. Chapter 17. The seduction of pessimism. Ever notice how your ears jump to life when someone says, "The market's about to crash," or "The economy won't survive the next 5 years." What's your reaction? Do you stop and pay attention? Well, most people do. Why? Because pessimism feels smart. It feels urgent, like an alarm going off. In this chapter, Morgan explains why we're drawn to negative predictions and why in the world of money, that mindset can actually hold you back. Let's start with a basic truth about human nature. Bad news grabs attention. And good news, it gets ignored. When someone says things will be okay, you nod and move on. But when someone says a disaster is coming, you stop. You listen. You prepare. You worry. For example, let's say two headlines pop up. One says, "Markets expected to rise steadily over the next decade." The other says, "Crash coming. Protect your savings before it's too late." Which one are you more likely to click? Exactly. The scary one. Why? Because fear gets your attention. It feels like you're getting a secret heads up before disaster strikes. And optimism, it feels boring, like background noise. But here's what Morgan wants us to understand. In the world of money, optimism is usually more accurate, especially over the long run. Think about how much progress we've made. Global poverty down. Life expectancy up. Technology growing faster than ever. The stock market bumpy yes. But it trends upward over time. Yes, there are setbacks. There are crashes, recessions, even panics. But over the long term, progress is the trend. So why does pessimism sound more intelligent? Because it feels like protection. When someone says, "Be careful," they sound wise, thoughtful, like they've seen things you haven't. Meanwhile, the optimist, they sound naive, unrealistic, maybe even a little too hopeful. But Morgan reminds us, yes, pessimism often sounds smarter. But optimism is what leads to long-term success, especially in investing. That's why the people who succeed with money are usually the ones who stay invested even when it's scary, keep saving, even when the news says not to. Keep building while others are backing away. They're not ignoring risk. They're just not ruled by it. Let's be clear here. It's okay to be careful. It's wise to prepare. But when fear makes all your decisions, you end up missing the very chances that could move you forward. You sell at the bottom. You avoid investing. You sit on the sidelines. And over time, that fear costs more than any crash ever could. So, how do you stay optimistic in a world that loves bad news? You zoom out. You look at history. You remember the bigger picture. Yes, bad things happen. But over time, good things keep growing. Innovation continues. Businesses rebuild. Markets recover. Progress is the trend, not the exception. So, here's the big takeaway from this chapter. Don't let the pessimism seduce you. It might sound smart. It might sound safe. But in the world of money, real growth lives on the side of optimism. And if you let fear guide your every choice, you might miss out on the best opportunities. So stay grounded, prepare for bumps, but keep moving forward. Because if history has taught us anything, it's this. Over time, things tend to get better, not worse, even if it takes a while. Coming up in the next chapter, we'll talk about how some of our worst money decisions come from believing the wrong stories. Stories we tell ourselves. Stories we borrow from others. Stick around. You'll want to hear this one. Chapter 18. When you'll believe anything. Have you ever heard a money story that just felt true? Not because you analyze the numbers, but because it just made sense in your gut. like someone who doubled their money overnight in the stock market or a rags to rich's tale that sounds almost magical. You hear it and you think maybe I can do that too. But pause for a second. Did you believe it because it was logical or because it was emotional? In this chapter, we'll talk about why when it comes to money, we're often guided more by stories than by facts. Stories we hear, stories we see, and most powerfully, stories we live. Let's break it down. Let's go back to the 2008 financial crisis. Some people lost everything in the market. So, their story is investing is too risky, never trust it. Others, they held on. And years later, they saw their investments bounce back stronger than ever. their story. The market always bounces back. Stay invested. Same event, totally different lessons. Why? Because we don't just remember what happened. We remember how it felt. Morgan compares this to how we process news or history. We don't just want cold facts. We want a story. Because stories are easier to remember, easier to share, and much easier to believe. But the problem is stories are simplified. In real life, it's messy. It's complicated. It's full of unknowns. Let's say your friend gets rich off crypto. They tell you how they bought low, sold high, and now they're driving a Tesla. You hear their story. You see their success and suddenly you feel like you should do it too. You hear the highlight reel. But what you didn't hear is the sleepless nights when prices crashed, the credit card debt they took to invest. The moment they almost sold everything and didn't, or the fact that they just got lucky. Their story sounds clean. But the reality is way more complicated. Morgan says that's exactly how bubbles form. People hear stories, they believe them, and they act not on facts, but on emotions. And when those stories fall apart, they're shocked. Even though the facts were always there. That's why Morgan warns us, just because a story feels true, doesn't mean it is. So, what do we do? We slow down and ask ourselves, "Am I believing this because it's true or because it feels good." We remind ourselves a good story isn't always a good plan. Though our brains are wired to understand the world through stories, we have to be extra careful not to confuse a good story with a good strategy. So before making a financial move, ask, "Is this based on logic or emotion? Is this someone else's journey or part of my own? Because chasing someone else's story might lead you far off your own path. So, here's the big takeaway from this chapter. Be careful what financial stories you believe. They might be inspiring. They might be popular, but they're not always completely true. And they're not always right for you. Stories are powerful. They move us. They motivate us, but they're not facts. They're not guarantees, and they're not an alternative for a solid plan. Inspiration is valuable, but it's not a substitute for doing your homework. So, the next time someone shares their sure thing success story, pause, ask questions, check the facts, and most of all, make sure the story you're following is one that leads to your goals, not to someone else's ending. Coming up in the next chapter, we'll take a step back and recap all the key lessons we have learned so far in the entire book. Don't miss it. Chapter 19, all together. Now, if you've made it this far, first of all, congratulations. That means you're not just curious about money. You're serious about understanding it. Not just the math part, but the human side of it, the emotions, the habits, the real life stuff that numbers can't explain. In this chapter, Morgan wraps everything up and shares the biggest lessons we've learned so far in the entire book. But before we dive into the actual lessons, let's listen to a strange but true story that Morgan shares. It's about a dentist visit gone horribly wrong. It's 1931. A man named Clarence Hughes walks into a dentist's office. He's in pain. His mouth hurts badly. So, the dentist gives him anesthesia and puts him to sleep. But when Clarence wakes up, 16 of his teeth gone, his tonsils also gone. And a week later, he died of complications. His wife sues the dentist. Not because the surgery failed, but because Clarence never agreed to it in the first place. But back then, doctors didn't need permission. The thinking was doctors know the best. Patients didn't get a say. But that thinking has changed now because over time the medical world realized something powerful. People are different. What works for one person may not work for another. So today, doctors share the options and patients decide what's right for them. Morgan brings up this story to make a point. Money works the same way. He says, "I can't tell you what to do with your money because I don't know you. I don't know what you want, when you want, or why you want it. So any advice I give without knowing you, it would be like that dentist pulling teeth without asking. It might work sometimes, but it's risky and not respectful of your unique situation. But that also doesn't mean advice is useless. Because just like doctors know what usually works, there are universal money truths. You just need to apply them in a way that fits you. So here they are. Morgan's key lessons from this book. Simple, powerful, real, and easy to remember. Lesson one, stay humble when things go well and be forgiving when they don't. Nothing is ever as great or as terrible as it seems. Luck and risk are real. You can't see them, but they shape everything. Respect that and you'll make better decisions. Lesson two, less ego, more wealth. Wealth isn't what you show off, it's what you don't. It's the money you save by saying no to something today so you can have more options tomorrow. Lesson three. Manage your money so you can sleep at night. Chasing the highest returns is not worth it, not if it robs you of sleep. Real success, it's peace of mind. Lesson four. Time is your secret weapon. Think of money like planting a tree. You don't dig it up every day to check it. You water it. You wait. Time makes it grow. Give your money a room to grow and it will surprise you. Lesson five. Be okay with things going wrong. Even the smartest people mess up. That's normal. One bad chapter doesn't ruin the whole book. A few great decisions often make up for a lot of bad ones. Zoom out. Look at the bigger picture. Lesson six. Buy time, not stuff. A big house is nice. A cool car is fun. But you could trade all that stuff for more time with your kids. For a slow morning walk, for saying no to what you don't love. That's what real wealth buys. Freedom. Lesson seven. Be kind, not flashy. A fancy car might turn heads, but kindness and humility, they win hearts and that lasts longer. Lesson eight, save just because. You don't need a reason. Save for the unknown because life loves to surprise us, usually when we least expect it. Savings give you confidence and security. It's like an umbrella. You don't wait for the rain to buy one. Lesson nine. Success has a cost. Be ready to pay it. Stress, doubt, fear. These are the prices of success. Every dream has a toll booth. Don't fear the toll. Just know it's a part of the road. And yes, it's worth the ride. Lesson 10. Leave room for error. Always have a margin of safety because things rarely go exactly as planned. No plan is perfect. Stuff go wrong. Life gets weird. So build a cushion. Safety nets aren't weaknesses. They're wise. Lesson 11. Avoid extremes. Going allin can backfire. Life changes. You change. What felt smart 5 years ago might feel reckless today. So be flexible and ready to adjust. Lesson 12. Love risk, but fear ruin. Risk is necessary because it brings rewards. But ruin it ends the game. So take smart risks, but avoid anything that could wipe you out. Lesson 13. Know your game. Are you saving for retirement, trying to buy a house, or building generational wealth? Know your game and don't let people playing a different game influence your decisions. Don't bring a chess strategy to a poker table. Your money, your goals, your game. And finally, lesson 14. Respect the mess. Money is messy. It's personal. It's emotional. And people will always see it differently because people have different dreams, different goals. different fears. And that's okay because what works for you? That's the big question. There's no one right way. There's just your way. The one that fits your life, your values, and your goals. Now that you've heard all the key takeaways, next it all gets personal. In the final chapter, Morgan opens his personal vault and reveals exactly how he manages his own money, how he applies these lessons to his own life, the choices he makes, the trade-offs he accepts. Curious to know what a finance expert actually does with his own wealth? Stick around because the next chapter reveals it all. It's raw. It's honest. You don't want to miss it. Chapter 20, Confessions. This is one of the most personal and eyeopening chapters of this book. It's not just about money strategies. It's about what Morgan himself does with his own money. And more importantly, it's about why he does what he does. Let's start with a simple question. What do you own and why? This is the question billionaire investor Sandy Gotisman used to ask people he wanted to hire. It's a powerful question because it cuts through the talk and gets to the truth. And it turns out a lot of people say one thing about money but do something completely different when it's their own money on the line. Half of the mutual fund managers don't invest in their own funds. That's like a chef who won't eat their own cooking. Think about that. And doctors, same thing. They'll recommend one kind of treatment to their patients, but choose something totally different for themselves. So, what's going on? It shows us something important. When it's your money or your life is on the line, we make decisions differently. Morgan's message is clear. Personal finance is exactly that, personal. People don't make money decisions based on spreadsheets or textbooks. They make them around their dinner table with their partners thinking about their kids, their future, and what helps them sleep well at night. And those things, they are different for everyone. There's no oneizefits-all formula when it comes to money. Now, let's talk about how Morgan handles his own money. His biggest money goal, independence. To him, real wealth means having the freedom to do what you want, when you want, and with whom you want. It's not about having the biggest house or fanciest car. It's about being in control of your time. It's about having the freedom to live life on his own terms. Morgan learned this from his dad. His father became a doctor at 40 with three kids. He went from being poor to doing okay. But even when things got better, he kept saving by living below their means. He saved a lot. And one day, after years of high stress work in the emergency room, his dad just quit, walked away, free from everything. This event left a mark on Morgan. It stuck with him for life. For him, independence became the ultimate financial goal from then on. To him, that freedom to do what you want, when you want, with whom you want, is the real goal. And here's the good news. You don't need to be a doctor or make a ton of money to get there. You just need to keep your lifestyle expectations in check and save like it matters. Morgan and his wife have a simple rule. Don't let your lifestyle grow just because your income does. They started off with simple jobs and a simple lifestyle. A basic apartment, an okay car, nothing fancy. They liked reading, walking, and spending time together, stuff that doesn't cost much. And even after their incomes went up, they kept the same lifestyle. They didn't feel like they were missing out because they figured out early on what was enough for them, and they stopped moving the goalpost. that allowed them to save more and more over time. And the result, it gave them something better than more stuff, more savings, more independence, less pressure. Now, here's something that might surprise you. Morgan once made what experts called his worst financial decision. But to him, it was one of the best money decisions he had ever made. Morgan and his wife paid off their house completely, even though interest rates were super low. The advisers said they could have invested that money, but for them, it wasn't about math. It was about peace of mind. They didn't want to owe anyone money. Owning their home outright made them feel free. No monthly payments, no debt. It wasn't the right financial decision, but it was the right emotional decision. And that's worth more than a few extra dollars in returns. Because sometimes being happy is more important than being right. Now, here's another thing they do, one that most experts wouldn't recommend. They keep around 20% of their savings in cash. Most financial experts would say that's way too much. But here's their thinking. Cash is like oxygen for their lifestyle. It lets them breathe when life gets hard. An unexpected medical bill, job loss, or whatever emergency pops up. They don't have to panic. They don't have to sell their stocks at the wrong time. And most of all, holding cash gives their investments more time to grow without being interrupted. That's important because Charlie Mer had said the first rule of compounding is to never interrupt it unnecessarily. Now, here's how Morgan invests. He started his career picking individual stocks and at one point he owned 25 different companies, but these days he keeps things simple. He invests in lowcost index funds, both US and international. He still respects people who actively pick stocks, but for him, it's not worth the extra risk. He knows he might not beat the market, but he also knows he probably won't mess things up, and that's a trade he's happy to make. His family lives simply. They save a lot, and they invest steadily. Their plan is simple. Invest from every paycheck. Max out retirement accounts. Contribute to kids college funds. And let the money grow quietly over time. Nothing flashy, no chasing trends, no fancy strategies, just patience, optimism, and consistency. So, what's the big takeaway from this chapter? It's this. Money is personal. It's not about doing what's right on paper. It's about doing what feels right for you. Morgan says it best. The best financial plan is the one that helps you sleep well at night. For him, that means independence, simplicity, and being okay with not always having the perfect answer. What works for him might not work for you, and that's perfectly okay. So whether that's paying off your house early, keeping extra cash, or sticking with simple investments, do what gives you peace of mind. Because when it comes to money, no one is crazy. We're all just trying to do our best with what we've got, where we are, and who we are. And that's a wrap on the psychology of money. Timeless lessons on wealth, greed, and happiness. by Morgan Hel. Thank you for listening.