Quotes of Morgan

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“It costs $0.00 to think long term.” - Brian Feroldi

Quotes Of Morgan

In today’s piece, we are going to discuss my favorite finance book of all time: The Psychology of Money by Morgan Housel.

Your typical investing book will say the same thing: "Invest 20%, dollar cost average, buy index funds," you know the drill. In his book, Mr. Housel takes a different approach.

He breaks down finance into simple terms and disconnects them from the actual dollar value. It may sound weird at first, but it doesn’t take long to see how The Psychology of Money puts into words all those money/life thoughts that you find hard to explain.

I won’t ruin the entire book, but below are a few great quotes from this legendary piece.

Let’s get into it 🤝 

“Yes, but I have something he will never have…enough.”

Think about it: when you got that last raise, it felt good, but a couple of weeks later, you were already thinking of the next bump in pay. Maybe you got a new vehicle, only to find yourself wanting the latest and greatest car just a year later.

While it’s great to always strive for more, one has to realize when they have "made it." Morgan uses a great example where he mentions an individual that made a risky investment that ended up paying off.

This person was set for life, but instead of realizing their fortune, their goalposts shifted. They continued with their risky investments, only to find themselves with less money than they had before. Be careful of shifting the goalposts, eventually, you will run out of leg.

“Nothing is as good or as bad as it seems.”

This quote is especially relevant over the last few years. If you are an investor, you know that we have seen some major events: a worldwide pandemic, record inflation, and recently, a mini-banking crisis.

These scary episodes strike fear, but over the long run, there is a high chance that none of these events matter. Our psychology tends to exaggerate outcomes when, in reality, it’s just another news headline we’ll forget in six months.

“No one’s crazy.”

As someone who interacts with hundreds of people a week on Twitter, this quote really made me think.

After writing this, Morgan breaks down how one’s background has a major impact on how they view money. Maybe their dad lost it all in the 2008 recession, or maybe they started investing at the bottom of the Covid-19 rally and saw nothing but green for an entire year.

Everyone has a different experience with money that influences how they see it today. Keep this in mind the next time you hear an outlandish statement; that person probably experienced a thing or two.

Conclusion

This was a quick breakdown of a few of my favorite quotes. If you’d like to give it a read, here is a link to check out The Psychology of Money on Amazon (no it’s not an affiliate link).

Thanks for reading, don’t forget to take a gander at my finds and favorite memes from the week below.

Till next time baller. ~ Cade

Cade's Finds

How Much to Save In Your Emergency Fund - Great post by Nick Maggiulli highlighting why you need an emergency fund, and how much you should save.

Sanford Students Pitch Startup - My First Million podcast episode where Shaan and Sam judge a Stanford pitch competition. Not only do the students have some cool ideas, but Shaan and Sam give some great tips on how to structure a pitch.

Best Memes

Last week at work a co-worker mentioned a youtube channel that I have never watched before. Got home, opened Youtube, and walaaa two recommend videos from the channel.

Guys know you end up carrying the girls phone 99% of the time as well.

Nothing in this email is intended to serve as financial advice. Do your own research. Thanks for reading, if you have any questions, comments, suggestions, etc. about the email don’t hesitate to send me a reply.