Do You Want to Be Rich or Wealthy? (And Why the Difference Matters)

Today's blog post is from a podcast from The Art of Manliness:

When we think about finance, we typically think about numbers and math. My guest today, however, argues that doing well with money is less about what you can put on a spreadsheet and more about what goes on in your mind, and that if you want to master personal finance, you’ve got to understand how things like your own history, unique view of the world, and fear and pride influence how you think.

His name is Morgan Housel, and he’s an investor, a financial journalist, and the author of The Psychology of Money: Timeless Lessons on Wealth, Greed, and Happiness. Morgan kicks off our conversation by explaining how doing well with money is less about what you know and more about how you behave, and illustrates this point by comparing the true stories of a janitor who saved millions and a prominent Wall Streeter who went bankrupt. He then explains how the seemingly crazy decisions people make around money actually make a kind of sense. From there we get into why you need to know the financial game you’re playing and not play someone else’s. We then turn to why it’s hard to be satisfied with your position in life when your expectations keep rising and why not continually moving your goalposts is the most important skill in personal finance. We discuss how getting off the never-ending treadmill of wanting more requires seeing money not just as a way to buy stuff but to gain greater autonomy, keeping the “man in the car paradox” in mind, and understanding the distinction between being rich and being wealthy. We then talk about the underappreciated, mind-boggling power of compound interest, using the example of Warren Buffet, who made 99% of his wealth after the age of 50. We then discuss why you should view volatility in the stock market as a fee rather than a fine, why pessimistic financial opinions are strangely more appealing than optimistic ones, and why it’s best to split the difference and approach your money like a realistic optimist. We end our conversation with the two prongs of Morgan’s iron law for building wealth.

This was a really interesting podcast. I liked his ideas on the difference between being rich and being wealthy. I'll take wealthy!

Here's another blog post on the topic 

Interesting days

Today - Global Dignity Day, Clean Your Virtual Desktop Day, Chocolate Cupcake Day, No Beard Day and Developmental Language Disorder Awareness Day

Tomorrow - International Gin and Tonic Day and Evaluate Your Life Day

Week long celebrations:

October 18 - 24: Healthcare Foodservice Workers Week 

Next Monday - International Artists Day, Sourest Day, World Pasta Day, Punk for a Day Day and Greasy Food Day

November 18 - Use Less Stuff Day, Occult Day, Apple Cider Day, Princess Day, Vichyssoise Day, Adoption Day, GIS Day, Mickey Mouse Day and Housing Day

Week long celebrations:

November 16 - 21: Road Safety Week