NGPF Podcast: Morgan Housel discusses his new book "The Psychology of Money"

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Sep 11, 2020
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Podcasts, Behavioral Finance, Investing, Index Funds

Morgan Housel is back for an encore performance on the NGPF Podcast to talk about his new book, The Psychology of Money. Morgan has that rare talent of making financial lessons memorable through incredible storytelling that weaves in history, psychology, sociology and even medicine. In fact, his book is a compilation of 19 of his favorite stories. Listen to this podcast and learn about his creative process, his favorite stories and the money lessons they teach and COVID-19's long-term impact on financial behaviors. Enjoy!

Details:

  • 0:00~1:02 Introduction
  • 1:02~5:37 How Morgan became interested in the psychology of money and investing
  • 5:37~8:51 Taking emotions out of investing through dollar-cost averaging and index funds
  • 8:51~11:11 Importance of good storytelling 
  • 11:11~14:57 Being reasonable versus rational with money
  • 14:57~16:50 Creative process behind Morgan’s blog posts 
  • 16:50~20:19 Alternatives to the risk questionnaire 
  • 20:19~23:30 How should we be thinking about investing?
  • 23:30~27:06 No one is crazy with their money
  • 27:06~30:59 Getting rich versus staying rich 
  • 30:59~33:05 How Morgan’s book is formatted 
  • 33:05~39:14 COVID-19’s impact on people’s attitudes towards money
  • 39:14~43:10 Happiness and money
  • 43:10~47:33 How to become a better storyteller
  • 47:33~50:07 Getting people out poverty  
  • 50:07~54:03 On universal basic income 
  • 54:03~56:03 History of market volatility
  • 56:03~58:10 Conclusion 

Resources:

Quotes:

  • “No one is crazy. What I mean by that is people do crazy things with their money. People make all kinds of bad decisions and regrettable decisions but no one is crazy because we are all just trying to make the model of the world with how we think the world works based on our own experiences and trying to make money decisions off of that model. And everyone’s model and everyone’s interpretation of the world is different because we all have different experiences.”

About the Authors

Tim Ranzetta

Tim's saving habits started at seven when a neighbor with a broken hip gave him a dog walking job. Her recovery, which took almost a year, resulted in Tim getting to know the bank tellers quite well (and accumulating a savings account balance of over $300!). His recent entrepreneurial adventures have included driving a shredding truck, analyzing executive compensation packages for Fortune 500 companies and helping families make better college financing decisions. After volunteering in 2010 to create and teach a personal finance program at Eastside College Prep in East Palo Alto, Tim saw firsthand the impact of an engaging and activity-based curriculum, which inspired him to start a new non-profit, Next Gen Personal Finance.

Ren Makino

Ren has been working part-time at NGPF since 2014, interning through high school and college. With his knowledge growing alongside NGPF, after graduating from college in 2020, he joined the team to work full time with a focus on teacher onboarding. He is also the editor of the NGPF podcast and makes sure it is accessible to teachers on iTunes, Stitcher, and Google Play Music. During his free time, he likes to try out coffees from different roasters across the world and try out new brewing methods, even though personal finance gurus tend to caution against buying a cup of joe.