Morgan Housel Quotes

Who the Heck is Morgan Housel?

Morgan Housel is a financial author known for the books 'The Psychology of Money' and '50 Years in the Making'

Books by Morgan Housel

Best Quotes by Morgan Housel

“A barbelled personality—optimistic about the future, but paranoid about what will prevent you from getting to the future—is vital.”

Morgan Housel
The Psychology of Money

“A good rule of thumb for a lot of things in life is that everything that can break will eventually break. So if many things rely on one thing working, and that thing breaks, you are counting the days to catastrophe. That’s a single point of failure.”

Morgan Housel
The Psychology of Money

“Admit when you are wrong.”

Morgan Housel

“Aligning money towards a life that lets you do what you want, when you want, with who you want, where you want, for as long as you want, has incredible return.”

Morgan Housel
The Psychology of Money

“An underpinning of psychology is that people are poor forecasters of their future selves.”

Morgan Housel
The Psychology of Money

“Assume the worst, hope for the best, accept reality.”

Morgan Housel

“Be careful when reading about how stupid investors can be and not realize you're reading about yourself.”

Morgan Housel

“Beware taking financial cues from people playing a different game than you are.”

Morgan Housel
The Psychology of Money

“Big risks will always be disregarded; small risks always blown out of proportion.”

Morgan Housel

“Bubbles form when the momentum of short-term returns attracts enough money that the makeup of investors shifts from mostly long term to mostly short term.”

Morgan Housel
The Psychology of Money

“Building wealth has little to do with your income or investment returns, and lots to do with your savings rate.”

Morgan Housel
The Psychology of Money

“Change your mind as often as the facts change.”

Morgan Housel

“Control over doing what you want, when you want to, with the people you want to, is the broadest lifestyle variable that makes people happy.”

Morgan Housel
The Psychology of Money

“Define the cost of success and be ready to pay for it. Because nothing worthwhile is free.”

Morgan Housel
The Psychology of Money

“Dollar-cost average for your entire life and you'll beat almost everyone who doesn't.”

Morgan Housel

“Don't attempt to keep up with the Joneses without realizing the Joneses aren't any happier than you are.”

Morgan Housel

“During the last 100 years, there have been more 10% market pullbacks than Christmases. Everyone knows Christmas will come; think of volatility the same way.”

Morgan Housel

“Emotional intelligence is more important than book intelligence.”

Morgan Housel

“Enough is not too little … Enough is realizing that the opposite — an insatiable appetite for more — will push you to the point of regret.”

Morgan Housel
The Psychology of Money

“Every five to seven years, people forget that recessions occur every five to seven years.”

Morgan Housel

“Everything has a price, but not all prices appear on labels.”

Morgan Housel
The Psychology of Money

“Getting money requires taking risks, being optimistic, and putting yourself out there. But keeping money requires the opposite of taking risk. It requires humility, and fear that what you’ve made can be taken away from you just as fast. It requires frugality and an acceptance that at least some of what you’ve made is attributable to luck, so past success can’t be relied upon to repeat indefinitely.”

Morgan Housel
The Psychology of Money

“Good investing is not necessarily about making good decisions. It’s about consistently not screwing up.”

Morgan Housel
The Psychology of Money

“Having more control over your time and options is becoming one of the most valuable currencies in the world.”

Morgan Housel
The Psychology of Money

“History is mostly the study of surprising events. But it is often used by investors and economists as an unassailable guide to the future.

Do you see the irony?

Do you see the problem?”

Morgan Housel
The Psychology of Money

“History is the study of change, ironically used as a map of the future.”

Morgan Housel
The Psychology of Money

“Holding 60% of your assets in stocks and 40% in bonds isn't perfect for everyone; but I can think of a thousand worse strategies.”

Morgan Housel

“Humility, kindness, and empathy will bring you more respect than horsepower ever will.”

Morgan Housel
The Psychology of Money

“If something compounds—if a little growth serves as the fuel for future growth—a small starting base can lead to results so extraordinary they seem to defy logic. It can be so logic-defying that you underestimate what’s possible, where growth comes from, and what it can lead to.”

Morgan Housel
The Psychology of Money

“If you have flexibility you can wait for good opportunities, both in your career and for your investments.”

Morgan Housel
The Psychology of Money

“Ignore people who refuse to change their minds when the facts change.”

Morgan Housel

“Imagine how much stuff you'd have to make up if you were forced to talk 24/7. Remember this when watching financial news on TV.”

Morgan Housel

“Independence is the best financial goal.

Control your schedule, don't have to play anyone else's games.”

Morgan Housel

“Independence, at any income level, is driven by your savings rate.”

Morgan Housel
The Psychology of Money

“Investors were probably better informed 20 years ago when there was 90% less financial news.”

Morgan Housel

“It’s hard to grasp that other investors have different goals than we do, because an anchor of psychology is not realizing that rational people can see the world through a different lens than your own.”

Morgan Housel
The Psychology of Money

“Judge investors by the quality of their arguments, not the performance of their last trade.”

Morgan Housel

“Just as you should dress appropriately for your age, you should spend appropriately for your income, and not a penny more.”

Morgan Housel

“Learn more from your bad investments than your good ones.”

Morgan Housel

“Learning to be happy with less money creates a gap between what you have and what you want.”

Morgan Housel
The Psychology of Money

“Life isn’t any fun without a sense of enough. Happiness, as it’s said, is just results minus expectations.”

Morgan Housel
The Psychology of Money

“Long-term planning is harder than it seems because people’s goals and desires change over time.”

Morgan Housel
The Psychology of Money

“Luck and risk are both the reality that every outcome in life is guided by forces other than individual effort.”

Morgan Housel
The Psychology of Money

“Maintaining a lifestyle below what you can afford is avoiding the psychological treadmill of keeping up with the Joneses.”

Morgan Housel
The Psychology of Money

“Money’s greatest intrinsic value—and this can’t be overstated—is its ability to give you control over your time.”

Morgan Housel
The Psychology of Money

“Most people's biggest expense is interest, which comes from living beyond your means, and buying things they think will impress others, which comes from insecurity. Avoid these two and you'll grow richer than most of your peers.”

Morgan Housel

“Most things are harder in practice than they are in theory.”

Morgan Housel
The Psychology of Money

“No one is impressed with your possessions as much as you are.”

Morgan Housel
The Psychology of Money

“Not taking advantage of an employer match on your 401(k) is no different than declining a raise.”

Morgan Housel

“Optimism is a belief that the odds of a good outcome are in your favor over time, even when there will be setbacks along the way.”

Morgan Housel
The Psychology of Money

“Optimism sounds like a sales pitch. Pessimism sounds like someone trying to help you.”

Morgan Housel
The Psychology of Money

“People do some crazy things with money. But no one is crazy. Here’s the thing: People from different generations, raised by different parents who earned different incomes and held different values, in different parts of the world, born into different economies, experiencing different job markets with different incentives and different degrees of luck, learn very different lessons.”

Morgan Housel
The Psychology of Money

“Pessimism: everything will be bad.

Complacency: everything will be great.

Reasonable optimism: if you can endure enough bad it'll eventually get pretty great.”

Morgan Housel

“Planning is important, but the most important part of every plan is to plan on the plan not going according to plan.”

Morgan Housel
The Psychology of Money

“Predictions, opinions, and forecasts should be discounted by the number of times the person making them is on TV each week.”

Morgan Housel

“Progress happens too slowly to notice, but setbacks happen too quickly to ignore.”

Morgan Housel
The Psychology of Money

“Reaching for yield to increase your income is often like sticking your hands in a fire to warm them up — good in theory, disastrous in practice.”

Morgan Housel

“Read last year's market predictions and you'll never again take this year's predictions seriously.”

Morgan Housel

“Read more books and fewer articles.”

Morgan Housel

“Read more history and fewer forecasts.”

Morgan Housel

“Respect the role luck has played on some of your role models.”

Morgan Housel

“Save for your own retirement; assume Social Security and private pensions won't be around (even though they probably will).”

Morgan Housel

“Savings can be created by spending less. You can spend less if you desire less. And you will desire less if you care less about what others think of you.”

Morgan Housel
The Psychology of Money

“Screwing up is easy and being a genius is hard so your financial situation can improve a lot by avoiding dumb stuff versus spending all your effort looking for upside.”

Morgan Housel

“Spending money to show people how much money you have is the fastest way to have less money.”

Morgan Housel
The Psychology of Money

“Start saving for college before your kid is born, and start saving for your retirement before you graduate college. You'll feel silly when you start and like a genius when you finish.”

Morgan Housel

“The ability to do what you want, when you want, with who you want, for as long as you want, is priceless. It is the highest dividend money pays.”

Morgan Housel
The Psychology of Money

“The correct lesson to learn from surprises is that the world is surprising.”

Morgan Housel
The Psychology of Money

“The formula for how to do well with money is simple. The behaviors you battle while implementing that formula are hard.”

Morgan Housel
The Psychology of Money

“The further back in history you look, the more general your takeaways should be. Historians are not prophets.”

Morgan Housel
The Psychology of Money

“The highest form of wealth is the ability to wake up every morning and say, ‘I can do whatever I want today.”

Morgan Housel
The Psychology of Money

“The intangible benefits of money can be far more valuable and capable of increasing your happiness than the tangible things that are obvious targets of our savings.”

Morgan Housel
The Psychology of Money

“The line between ‘inspiringly bold’ and ‘foolishly reckless’ can be a millimeter thick and only visible with hindsight. Risk and luck are doppelgängers.”

Morgan Housel
The Psychology of Money

“The more you learn about the economy, the more you realize you have no idea what's going on.”

Morgan Housel

“The more you want something to be true, the more likely you are to believe a story that overestimates the odds of it being true.”

Morgan Housel
The Psychology of Money

“The most important finance topics don't require details. Most can be, and should be, summarized in a sentence or two.”

Morgan Housel

“The most powerful way to grow your money is learning to live with less, since you have complete control over it.”

Morgan Housel

“The only way to be wealthy is to not spend the money that you do have. It’s not just the only way to accumulate wealth; it’s the very definition of wealth.”

Morgan Housel
The Psychology of Money

“The price of investing success is not immediately obvious. It’s not a price tag you can see, so when the bill comes due it doesn’t feel like a fee for getting something good. It feels like a fine for doing something wrong.”

Morgan Housel
The Psychology of Money

“The problem with economic forecasting is that the things you can predict tend to not matter and the things you can't predict make all the difference in the world.”

Morgan Housel

“The truth is that wealth is what you don’t see. Wealth is the nice cars not purchased. The diamonds not bought. The watches not worn, the clothes forgone and the first-class upgrade declined. Wealth is financial assets that haven’t yet been converted into the stuff you see.”

Morgan Housel
The Psychology of Money

“There are a million ways to get wealthy … but there’s only one way to stay wealthy: some combination of frugality and paranoia.”

Morgan Housel
The Psychology of Money

“There is no reason to risk what you have and need for what you don’t have and don’t need.”

Morgan Housel
The Psychology of Money

“There is no single right answer; just the answer that works for you.”

Morgan Housel
The Psychology of Money

“There is, and always will be, more money to be made providing investment advice than receiving it.”

Morgan Housel

“There's a strong negative correlation between flaunting money and being rich.”

Morgan Housel

“Using your money to buy time and options has a lifestyle benefit few luxury goods can compete with.”

Morgan Housel
The Psychology of Money

“We tend to judge wealth by what we see, because that’s the information we have in front of us. We can’t see people’s bank accounts or brokerage statements. So we rely on outward appearances to gauge financial success. Cars. Homes. Instagram photos. Modern capitalism makes helping people fake it until they make it a cherished industry.”

Morgan Housel
The Psychology of Money

“Wealth is hidden. It’s income not spent. Wealth is an option not yet taken to buy something later. Its value lies in offering you options, flexibility, and growth to one day purchase more stuff than you could right now.”

Morgan Housel
The Psychology of Money

“When in doubt, choose the investment with the lowest fee.”

Morgan Housel

“When you define savings as the gap between your ego and your income you realize why many people with decent incomes save so little.”

Morgan Housel
The Psychology of Money

“You are one person in a game with seven billion other people and infinite moving parts. The accidental impact of actions outside of your control can be more consequential than the ones you consciously take.”

Morgan Housel
The Psychology of Money

“You can probably afford not to be a great investor -- you probably can't afford to be a bad one.”

Morgan Housel

“You have a strict obligation to not have an opinion about things you don't understand.”

Morgan Housel

“You have no obligation to have an opinion about anything.”

Morgan Housel

“You have to give yourself room for error. You have to plan on your plan not going according to plan.”

Morgan Housel
The Psychology of Money

“You should like risk because it pays off over time. But you should be paranoid of ruinous risk because it prevents you from taking future risks that will pay off over time.”

Morgan Housel
The Psychology of Money

“You shouldn't feel strongly about any investment you haven't spent at least a week thinking about.”

Morgan Housel

“You're twice as biased as you think you are (four times if you disagree with that statement).”

Morgan Housel

“You're twice as gullible as you think you are.”

Morgan Housel

“Your circle of competence is probably 90% smaller than you think it is.”

Morgan Housel

“Your devotion to a political party or economic philosophy is directly proportional to your tendency to think irrationally about how politics affects your investments.”

Morgan Housel

“Your personal experiences with money make up maybe 0.00000001% of what’s happened in the world, but maybe 80% of how you think the world works.”

Morgan Housel
The Psychology of Money