NGPF Podcast: Morgan Housel on the Psychology of Money (Part 2)
What would Morgan Housel teach if he had an hour to teach a high school personal finance class? What advice would he give his younger self? Answers to these questions and more in this NGPF Podcast.
This is part 2 of a conversation with Morgan Housel about his book, Psychology of Money (link to part 1). In this episode, Morgan shares his thoughts on the FIRE movement, how to build in room for error in our budgets and how to think about stock market volatility. Enjoy!
- 0:00~1:22 Introduction
- 1:22~3:04 Taking a unique approach to writing the book
- 3:04~9:22 The real-life examples of diversification
- 9:22~12:41 Strategies to save
- 12:41~14:56 Thoughts on the FIRE movement
- 14:56~19:04 Reasonable versus rational
- 19:04~22:06 Trading on margin
- 22:06~25:57 The influx of new investors
- 25:57~26:16 A word from NGPF
- 26:16~29:24 Having room for error
- 29:24~33:46 The end of history illusion
- 33:46~36:47 How one's views change over time
- 36:47~38:41 Nothing is free
- 38:41~42:54 What would you teach in a personal finance class?
- 42:54~45:26 What would you tell your younger self?
- 45:26~48:46 Telling stories about someone else
- 48:46~51:28 The personal nature of personal finance
- 51:28~53:30 Setting goals
- 53:30~54:52 Conclusion
- The Psychology of Money: Timeless lessons on wealth, greed, and happiness
- Morgan Housel Blog
- Listen to Part 1 of the Podcast
- Speaker Series Automated Transcription
“A lot of things in finance… they make sense on the spreadsheet, but people do not make decisions on a spreadsheet. They make them at the dinner table, and they make them in a conference room with their coworkers.”