Renowned financial writer and partner at Collaborative Fund, Morgan Housel, has shared some insightful observations in his recent blog post “Some Things I Think,” published on April 26, 2023. While delving into a range of subjects, he primarily focuses on our perceptions of wealth, success, and personal growth, offering thought-provoking perspectives that challenge conventional wisdom.
The Slow Path to Wealth
A striking insight that Housel provides is, “The fastest way to get rich is to go slow.” This contradicts the popular narrative of instant wealth creation often portrayed in media. Housel argues that true wealth accumulation is not a sprint but a marathon requiring patience, discipline, and consistency.
Housel’s contention is reinforced by his perspective on personal finance: “The most valuable personal finance asset is not needing to impress anyone.” In essence, true financial independence is not about showcasing wealth, but rather having the freedom to live life on your terms without social pressure.
The Deceptive Nature of Success
Housel warns of the risks of attributing success solely to personal brilliance, highlighting that luck often plays a significant role. It’s easy for one to believe they’re innately talented when they succeed without much effort, which can foster complacency and overconfidence. It’s crucial to remain humble and open to learning, regardless of one’s achievements.
On Human Behavior and Perception
A compelling observation from Housel pertains to the effects of social media and success on perception. He believes that social media is more of a stage for performance than a platform for authentic communication. Similarly, he notes that it’s easier for people to see you as special when they don’t know you intimately enough to see your flaws.
Furthermore, Housel suggests that our beliefs are often self-validating and highly subjective to our predispositions. Our perceptions and interpretations of the world around us can greatly be influenced by our emotions and perspectives.
Financial Debates and Time Horizons
He observes that most financial debates occur between people with different time horizons, leading to them essentially talking over each other. This serves as a reminder that everyone’s financial strategies and decisions are based on their unique circumstances and goals, thus reinforcing the importance of individualized financial planning.
Success and Knowing When to Quit
A defining trait of successful people in various fields, according to Housel, is their ability to know when to quit. Whether it’s in sports, business, politics, or entertainment, those who can wisely recognize when it’s time to pass the baton preserve and even enhance their reputation. Overstaying one’s welcome can risk diminishing past successes.
Housel’s insights serve as valuable reminders of the nuanced nature of success, wealth, and personal growth. From the role of luck in success to the deceptive allure of instant wealth, his reflections encourage a more thoughtful and realistic approach to life. It highlights the importance of patience, humility, individuality, and perseverance in navigating our personal and financial journeys.
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