Morgan Housel — Contrarian Money and Writing Advice, Three Simple Goals to Guide Your Life, and More

Added: Nov 1, 2023

The episode begins with Ferriss introducing Housel and discussing the success of their previous interview. Housel then shares the story of Warren Buffett and the Snickers candy bar, which inspired him to write his new book. Buffett's response to the question of whether the country would ever be the same after the Great Recession was simply, "Snickers." This anecdote led Housel to realize that Buffett's success lies in betting on things that never change.

Housel explains that people are generally bad at predicting the future because they focus on what will change rather than what will remain constant. He believes that by understanding human behavior and focusing on timeless principles, such as greed and fear, one can have a better understanding of the future.

The conversation then shifts to the topic of writing, with Ferriss asking Housel about his process for drafting first drafts. Housel admits that his approach may not be the best advice for aspiring writers, but he is a "first draft and publish" writer. He writes one sentence at a time and does not move on until it is perfect. He believes that good writing is easy, while bad writing is hard, and that writer's block is often a sign of a mediocre idea.

They then discuss Housel's blog post titled "Rich and Anonymous," which explores the concept of social debt that comes with wealth. Housel shares a story about a family worth $8 billion who intentionally live anonymously and avoid social debt. He believes that giving children less money is the key to raising them to be less entitled and more self-aware. He cites examples of wealthy families who have chosen not to give their children large inheritances and have seen positive outcomes.

Ferriss asks Housel about his thoughts on philanthropy and how he would handle a billion dollars of net worth. Housel admits that he and his wife have only recently started thinking about giving money away and have found it to be more difficult than expected. He believes in microphilanthropy and making a big difference in small ways.

The conversation continues with Housel sharing his three simple goals to guide his life: be a good person, be a good husband and father, and be a good writer. He believes that focusing on these goals and what never changes in life can lead to a happier and more fulfilling life.

One of the main subjects discussed is the difficulty of giving to charity and the desire to make a direct impact on someone's life. Morgan recounts an experience where he gave money to a struggling single mother and child, but received no gratitude or acknowledgment. He reflects on the challenge of wanting feedback and validation for charitable acts, even though it may not always be possible or expected.

The conversation then shifts to the relationship between money and happiness. Morgan emphasizes that while money can improve one's life and provide contentment, it does not guarantee happiness. He shares examples of wealthy individuals who are still unhappy, highlighting the importance of mindset and disposition in finding true happiness.

The podcast also delves into the concept of risk and the impact of small decisions on our lives. Morgan shares a personal story about narrowly avoiding an avalanche while skiing with friends. He reflects on the fragility of life and the realization that seemingly insignificant decisions can have profound consequences. This leads to a discussion about the unpredictability of the future and the importance of being open to different possibilities.

The conversation then explores the power of incentives and how they can shape people's behavior. Morgan cites examples of individuals supporting controversial figures like Hitler and El Chapo due to the incentives they offer, such as jobs and prosperity. He cautions against judging others without considering the influence of incentives and acknowledges that one's own behavior might be different under different circumstances.

The podcast then touches on the value of not needing to impress others. Morgan suggests that cultivating respect and admiration through qualities like wisdom, intelligence, humor, and empathy is more meaningful than trying to gain admiration through material possessions. He emphasizes the importance of being true to oneself and finding fulfillment in personal growth and meaningful relationships.

The conversation then shifts to the topic of marriage and how people should approach it. Housel suggests that luck plays a significant role in finding a compatible partner, especially considering the narrow window of time in which most people want to get married. He also highlights the importance of prioritizing qualities like friendship and compatibility over superficial factors like looks or wealth.

The discussion then delves into the concept of success and the unavoidable costs that come with it. Housel mentions that many successful individuals have been rewarded for their problem-solving abilities, which can lead to a constant search for problems to solve. However, this mindset may not always foster a sense of well-being. He encourages people to consider the hassle they are trying to eliminate and whether it is an unavoidable cost of success.

The conversation then turns to the future of text and audio content. Housel shares his surprise at the popularity of audiobooks, with the audiobook version of his book outselling the physical copy. He also notes that podcasting has become a larger platform for him than his blog, highlighting the growing preference for audio content over written text. However, he acknowledges that writing and speaking are different skills, and individuals should focus on their strengths in either medium.

Housel continues by discussing the value of reading and the absorption of information. He expresses his preference for reading over listening, as it allows for easier comprehension and the ability to reread paragraphs. He believes that he will continue to be a reader and writer, even if his podcast becomes successful.

Housel continues by discussing his career as a writer and the unexpected success of his podcast. He reflects on the importance and impact of the book "The 4-Hour Workweek" and how it laid the foundation for his subsequent projects. Despite the popularity of his podcast, Housel believes that the longevity and enduring impact of books surpass that of podcasts due to the overwhelming amount of content available in the podcasting world.

The conversation then shifts to Housel's reading habits and the books he has reread multiple times. He mentions "Triangle Fire," a book about a tragic fire in a garment factory in New York City, which led to significant improvements in worker rights. Housel also recommends "Empty Mansions," a book about the mysterious life of Huguette Clark, and "The Strange Last Voyage of Donald Crowhurst," a story about a sailor who fakes his journey around the world.

Ferriss asks Housel how writing his latest book, "Same As Ever: A Guide to What Never Changes," has influenced his decision-making process and emotional reactions. Housel emphasizes the importance of focusing on behaviors and mindset rather than trying to predict the future. He believes that having the right behaviors and a proper asset allocation can help individuals navigate any surprises that life throws at them.

When asked about the target audience for his book, Housel explains that he writes for himself. He believes that writing for an audience of one allows him to be more introspective and avoid pandering to readers. However, he hopes that his books will inspire readers to become more introspective and find answers to their own questions about life.