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Latihan shadowing: The Best Financial Advice You’ll Ever Hear

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  1. What's the number one thing that keeps people broke?Apa satu hal yang membuat orang tetap miskin?0:00
  2. It's ignorance.Itu adalah kebodohan.0:02
  3. It's not a lack of intelligence.Bukan kurangnya kecerdasan.0:04
  4. It's ignorance.Itu adalah kebodohan.0:05
  5. Today, you are getting the best financial advice you'll ever hear from the man that changed the way that I think about money, the way that I make money.Hari ini, Anda mendapatkan nasihat keuangan terbaik dari pria yang mengubah cara saya berpikir tentang uang.0:08
  6. You're going to love this.Anda akan menyukainya.0:15
  7. 10 million copies sold, unpacking the five biggest takeaways.10 juta salinan terjual, mengupas lima pengambilan terbesar.0:16
  8. Let's go.Ayo pergi.0:20
  9. Morgan House.Morgan House.0:20
  10. Morgan House.Morgan House.0:21
  11. Morgan House.Morgan House.0:21
  12. Morgan House.Morgan House.0:22
Tampilkan semua 1169 kalimat Tampilkan lebih sedikit
  1. He's the author of the Psychology of Money.Dia adalah penulis Psychology of Money.0:23
  2. Psychology of Money.Psychology of Money.0:25
  3. Psychology of Money.Psychology of Money.0:25
  4. The Psychology of Money.The Psychology of Money.0:26
  5. We live in a society that it's very easy to overspend.Kami hidup di masyarakat di mana sangat mudah untuk berbelanja berlebihan.0:27
  6. A lot of people are willing to give you credit cards, give you debt.Banyak orang bersedia memberi Anda kartu kredit dan utang.0:29
  7. It is very easy to have bad financial habits.Sangat mudah memiliki kebiasaan keuangan yang buruk.0:31
  8. Instagram has basically become the new QVC.Instagram pada dasarnya telah menjadi QVC baru.0:35
  9. If you're buying these things particularly on credit, you have bad habits, you're getting yourself into debt.Jika Anda membeli hal-hal ini terutama dengan kredit, Anda punya kebiasaan buruk.0:39
  10. Every dollar of debt that you have is a piece of your future that somebody else owns.Setiap dolar utang adalah bagian dari masa depan Anda yang dimiliki orang lain.0:43
  11. You can be one of the richest men in the world and have no end to it.Anda bisa menjadi salah satu orang terkaya dan tetap merasa tidak puas.0:48
  12. Morgan, what do you recommend we do every time we get a paycheck or get paid?Morgan, apa yang Anda rekomendasikan kami lakukan setiap kali mendapat gaji?0:52
  13. I view savings as an expense, just as I would view rent or food or whatnot.Saya melihat tabungan sebagai pengeluaran, seperti sewa atau makanan.0:56
  14. Any time in finance, you can automate it.Dalam keuangan, Anda bisa mengotomatisasi semuanya.1:02
  15. So automating your bank and say every paycheck, you're going to move $50 to savings, whatever it might be, and making it automatic.Otomatisasi bank Anda untuk memindahkan uang ke tabungan setiap gaji.1:04
  16. What are the odds that at least one of these happens to you over the course of your life?Berapa probabilitas salah satu dari ini terjadi pada Anda?1:11
  17. Job loss, divorce, medical illness, wayward children, living through a giant recession, whatever it might be.Kehilangan pekerjaan, perceraian, penyakit, resesi, apa pun itu.1:14
  18. What are the odds that at least one of those will happen to you?Berapa probabilitas setidaknya satu dari ini terjadi pada Anda?1:19
  19. And the answer is 100%.Dan jawabannya adalah 100%.1:21
  20. And I think a lot of people don't want to admit that.Dan saya pikir banyak orang tidak ingin mengakuinya.1:23
  21. And when that happens, the savings that you have is going to be more valuable than anything that you've ever had.Dan ketika itu terjadi, tabungan Anda akan lebih berharga daripada apa pun.1:25
  22. And for the person who's still thinking, I mean, what's the point?Untuk orang yang masih bertanya, apa gunanya?1:29
  23. I can barely pay my bills.Saya hampir tidak dapat membayar tagihan saya.1:33
  24. What do you want them to know?Apa yang ingin Anda mereka ketahui?1:35
  25. The first thing I want you to know is I feel you.Hal pertama yang saya ingin Anda ketahui adalah saya merasakan Anda.1:36
  26. I empathize with you.Saya berempati dengan Anda.1:39
  27. I don't judge you.Saya tidak menghakimi Anda.1:40
  28. The second thing you should know is that it is.Hal kedua yang harus Anda ketahui adalah itu.1:41
  29. Hey, it's Friend Mel.Hei, ini Teman Mel.1:43
  30. And welcome to the Mel Robbins podcast.Dan selamat datang di podcast Mel Robbins.1:45
  31. Hey, it's Mel.Hei, ini Mel.1:53
  32. My team was showing me that 57 % of you who watch here on YouTube are not subscribed yet.Tim saya menunjukkan bahwa 57% penonton belum berlangganan.1:54
  33. Could you do me a quick favor?Bisakah Anda melakukan saya favsor cepat?2:00
  34. Hit subscribe.Tekan berlangganan.2:02
  35. It's free.Itu gratis.2:03
  36. And that way you don't miss any of the episodes that I post here on YouTube.Dan dengan cara itu Anda tidak akan melewatkan episode apa pun.2:04
  37. It also lets me know that you're enjoying the guests and you love the content that I'm bringing you because I want to make sure you don't miss anything.Itu juga memungkinkan saya tahu bahwa Anda menikmati konten saya.2:08
  38. So thank you, thank you, thank you for hitting subscribe.Jadi terima kasih telah mengklik berlangganan.2:16
  39. All right, you're ready.Baiklah, Anda siap.2:19
  40. I bet you are.Saya yakin Anda siap.2:20
  41. So let's dive in.Jadi mari kita selami.2:21
  42. Welcome to the Mel Robbins podcast.Selamat datang di podcast Mel Robbins.2:24
  43. Thanks for having me, Mel.Terima kasih telah memiliki saya, Mel.2:26
  44. Happy to be here.Senang berada di sini.2:27
  45. I am so glad you're here.Saya sangat senang Anda di sini.2:27
  46. Thank you for jumping on a plane.Terima kasih karena naik pesawat.2:28
  47. I'm a huge fan.Saya adalah penggemar besar.2:30
  48. I got to give a shout out to my husband Christopher Robbins because he was the one who first introduced me to your work, the psychology of money changed mySaya harus memberikan shout out kepada suami saya karena dia memperkenalkan saya dengan pekerjaan Anda.2:31
  49. life.hidup.2:40
  50. I am so excited for your new blockbuster, the art of spending money.Saya sangat bersemangat untuk buku terbaru Anda tentang seni pengeluaran uang.2:40
  51. And we're gonna get into all the takeaways from your mega bestsellers.Dan kami akan mendapatkan semua pengambilan dari mega bestseller Anda.2:45
  52. But I wanted to start by asking you, Morgan, if you could speak directly to the person who is here spending time together with us right now and share withTetapi saya ingin memulai dengan menanyakan kepada Anda, Morgan, jika Anda bisa berbicara langsung kepada orang di sini.2:50
  53. them what could be different about their life or the life of somebody that they care about, that they share this episode with, if they take everything to heart thatApa yang bisa berbeda tentang hidup mereka jika mereka mengambil semuanya ke hati itu.2:59
  54. you're about to share with us and teach us today and apply it to their life.Anda akan berbagi dengan kami dan ajari kami hari ini dan terapkan pada kehidupan mereka.3:09
  55. I think it would be that your ability to feel wealthy, to feel rich, to be financially independent is absolutely in your control.Saya pikir kemampuan Anda untuk merasa kaya dan mandiri secara finansial ada di bawah kontrol Anda.3:12
  56. It doesn't matter who you are, where you're from, how much money you make, what your job is, you can do it.Tidak peduli siapa Anda, dari mana, berapa banyak uang yang Anda hasilkan, Anda bisa melakukannya.3:20
  57. And I think we've told ourselves for generations that in order to become rich, you have to have the right educational background.Saya pikir kami telah mengatakan selama generasi bahwa untuk menjadi kaya, Anda harus memiliki latar belakang pendidikan yang tepat.3:27
  58. You have to have the right career.Anda harus memiliki karir yang tepat.3:33
  59. You have to come from the right family.Anda harus berasal dari keluarga yang tepat.3:34
  60. And I don't think it's true.Dan saya tidak berpikir itu benar.3:36
  61. It's not about how smart you are.Ini bukan tentang seberapa pintar Anda.3:37
  62. It's about how you think about money.Ini tentang bagaimana Anda berpikir tentang uang.3:39
  63. It's about how you behave and behavior is in everybody's control.Ini tentang bagaimana Anda berperilaku dan perilaku ada di bawah kontrol semua orang.3:41
  64. I don't know why I believe you, but I do.Saya tidak tahu mengapa saya percaya Anda, tetapi saya melakukannya.3:44
  65. That's good.Bagus.3:46
  66. Like I literally, no matter how in debt you are.Seperti saya secara harfiah, tidak peduli seberapa dalam utang Anda.3:46
  67. No matter how old you are, you can learn.Tidak peduli berapa umur Anda, Anda bisa belajar.3:50
  68. And that's kind of one of the big lessons I'm gonna talk about that I've distilled from your work that has changed my life and my relationship with money andDan itu adalah salah satu pelajaran besar yang telah mengubah hidup saya dan hubungan saya dengan uang.3:52
  69. the way I think about money, the way I save it, the way I spend it.cara saya berpikir tentang uang, cara saya menyimpannya, cara saya menghabiskannya.4:00
  70. It doesn't matter the starting point at all.Titik awal tidak penting sama sekali.4:04
  71. Lesson number one that I've learned from you is you can get good with money.Pelajaran nomor satu adalah Anda bisa menjadi baik dengan uang.4:08
  72. You believe that.Anda percaya itu.4:11
  73. I've seen it time and time again.Saya telah melihatnya berkali-kali.4:12
  74. And there are so many examples of it.Dan ada begitu banyak contohnya.4:14
  75. Let me give you this example here.Biarkan saya memberi Anda contoh di sini.4:15
  76. An ordinary person doesn't have a good education.An ordinary person doesn't have a good education.4:17
  77. Maybe they didn't even graduate high school, let's say, but they have good financial behavior.Maybe they didn't even graduate high school, let's say, but they have good financial behavior.4:19
  78. They can think long -term.They can think long -term.4:23
  79. They can keep their expectations in check.They can keep their expectations in check.4:25
  80. They're patient.They're patient.4:27
  81. They have those behavioral qualities that person can do very well.They have those behavioral qualities that person can do very well.4:28
  82. But the person who went to Harvard and got an MBA and went to work on Wall Street has the best education, the best connections, the best experience.But the person who went to Harvard and got an MBA and went to work on Wall Street has the best education, the best connections, the best experience.4:32
  83. That person can easily go broke and they do.That person can easily go broke and they do.4:39
  84. Not uncommon for that to happen.Not uncommon for that to happen.4:42
  85. And that is not true in other fields.And that is not true in other fields.4:43
  86. It is impossible to think of an ordinary person who didn't go to high school, didn't go to college, performing open heart surgery better than a Harvard -trained doctor.It is impossible to think of an ordinary person who didn't go to high school, didn't go to college, performing open heart surgery better than a Harvard -trained doctor.4:46
  87. That's impossible.That's impossible.4:54
  88. That will never happen.That will never happen.4:55
  89. But it does happen with money because it's not about what you know.But it does happen with money because it's not about what you know.4:56
  90. You don't need to know the secret formulas.You don't need to know the secret formulas.4:59
  91. You don't need to have secret connections.You don't need to have secret connections.5:01
  92. If you just get your behavior right and your thinking right, you can do well.If you just get your behavior right and your thinking right, you can do well.5:03
  93. Patience, keeping your expectations in check, not comparing yourself to other people, using money as a tool to live a better life instead of a yardstick to measure yourself againstPatience, keeping your expectations in check, not comparing yourself to other people, using money as a tool to live a better life instead of a yardstick to measure yourself against5:07
  94. others by.others by.5:16
  95. It's very simple stuff and it's all in your head.It's very simple stuff and it's all in your head.5:17
  96. And I think it's 99 % of what people need to know to do well with money is in your control.And I think it's 99 % of what people need to know to do well with money is in your control.5:20
  97. Well, I think one of the mistakes that I made for a very long time, particularly before I bumped into your work, is I believed that there was some secretWell, I think one of the mistakes that I made for a very long time, particularly before I bumped into your work, is I believed that there was some secret5:25
  98. formula, that there was some private club for rich people, that it was about who you know, where you went to school.formula, that there was some private club for rich people, that it was about who you know, where you went to school.5:35
  99. And what I love about your work is that you basically say, no, no, no, no, no, you're focusing on the wrong stuff.And what I love about your work is that you basically say, no, no, no, no, no, you're focusing on the wrong stuff.5:41
  100. There are actual behaviors that we can learn that will help you get good with money.There are actual behaviors that we can learn that will help you get good with money.5:49
  101. And they're not that difficult either.And they're not that difficult either.5:55
  102. They're in your control.They're in your control.5:56
  103. It's not to say that they're easy, but they're simple.It's not to say that they're easy, but they're simple.5:57
  104. And so just a couple of the behaviors, if you have an ability to focus internally on your own goals, rather than constantly comparing yourself against others, if you canAnd so just a couple of the behaviors, if you have an ability to focus internally on your own goals, rather than constantly comparing yourself against others, if you can6:01
  105. save a little bit of your money, even slightly below your means, invest that money and be patient.save a little bit of your money, even slightly below your means, invest that money and be patient.6:12
  106. Just those things, just those very, that's a kindergarten list of topics that I just gave you.Just those things, just those very, that's a kindergarten list of topics that I just gave you.6:18
  107. There's not a bunch of Greek formulas.There's not a bunch of Greek formulas.6:22
  108. It's not a bunch of Wall Street gibberish.It's not a bunch of Wall Street gibberish.6:24
  109. It's not a bunch of acronyms.It's not a bunch of acronyms.6:26
  110. These are very simple things.These are very simple things.6:27
  111. And that's it.And that's it.6:28
  112. Part of this too is redefining what I mean by financially successful.Part of this too is redefining what I mean by financially successful.6:30
  113. I'm not talking private islands and private jets, but for most people, what they actually want, if you said, what is your ultimate financial goal?I'm not talking private islands and private jets, but for most people, what they actually want, if you said, what is your ultimate financial goal?6:34
  114. They would say, I wanna have a stable housing for myself and my family.They would say, I wanna have a stable housing for myself and my family.6:40
  115. I wanna have a little bit of cushion to fall back on to if I were to get laid off or have a medical emergency.I wanna have a little bit of cushion to fall back on to if I were to get laid off or have a medical emergency.6:45
  116. I wanna be able to have a dignified retirement someday.I wanna be able to have a dignified retirement someday.6:50
  117. I wanna be able to spend time with my kids.I wanna be able to spend time with my kids.6:52
  118. Those are very good financial goals.Those are very good financial goals.6:54
  119. And that level of wealth and success, I think is within everybody's control.And that level of wealth and success, I think is within everybody's control.6:57
  120. Well, you said you wanted to teach us how to use money as a tool.Well, you said you wanted to teach us how to use money as a tool.7:01
  121. Yes.Yes.7:04
  122. To live a better life versus using it as a yardstick.To live a better life versus using it as a yardstick.7:05
  123. To measure yourself against others by.To measure yourself against others by.7:10
  124. Correct.Correct.7:12
  125. And that's one of the core things you're gonna teach us how to do and why this is so important today.And that's one of the core things you're gonna teach us how to do and why this is so important today.7:13
  126. Of course.Of course.7:19
  127. And it's easier said than done.And it's easier said than done.7:20
  128. It is so natural for everybody to compare yourself against others.It is so natural for everybody to compare yourself against others.7:21
  129. For me to measure my level of success by not saying, what do I have?For me to measure my level of success by not saying, what do I have?7:25
  130. But by saying, what do I have relative to that guy?But by saying, what do I have relative to that guy?7:29
  131. Not how comfortable is my house, but by saying, how big is my house relative to that person over there?Not how comfortable is my house, but by saying, how big is my house relative to that person over there?7:33
  132. To my neighbor, to my coworker, to my siblings.To my neighbor, to my coworker, to my siblings.7:39
  133. And one of the problems that makes it more difficult today than it's ever been is that it used to be for my parents' generation, my grandparents' generation, when theyAnd one of the problems that makes it more difficult today than it's ever been is that it used to be for my parents' generation, my grandparents' generation, when they7:42
  134. compared themselves to other people, it was relative to their neighbors or their coworkers.compared themselves to other people, it was relative to their neighbors or their coworkers.7:49
  135. It was a pretty small group of people.It was a pretty small group of people.7:54
  136. Maybe a couple of people who you saw on TV or heard about it on the radio, but now today just everybody, including myself, their comparison group is the mostMaybe a couple of people who you saw on TV or heard about it on the radio, but now today just everybody, including myself, their comparison group is the most7:56
  137. sophisticated algorithm on Instagram or TikTok.sophisticated algorithm on Instagram or TikTok.8:05
  138. And so no matter how well you're doing, no matter how great your house is, no matter how much money you're making, you turn on Instagram 100 times a day,And so no matter how well you're doing, no matter how great your house is, no matter how much money you're making, you turn on Instagram 100 times a day,8:09
  139. like everybody else, you open it up, and there is somebody out there who looks better, happier, more successful, more beautiful than you are.like everybody else, you open it up, and there is somebody out there who looks better, happier, more successful, more beautiful than you are.8:17
  140. And so this topic I think has always been true.And so this topic I think has always been true.8:24
  141. It's always been important.It's always been important.8:26
  142. It is more important today than it's ever been.It is more important today than it's ever been.8:27
  143. The idea of keeping your expectations in check, because it's easier today than it's ever been to let your expectations just spiral out of control.The idea of keeping your expectations in check, because it's easier today than it's ever been to let your expectations just spiral out of control.8:31
  144. I see this with my own kids, my nine -year -old son.I see this with my own kids, my nine -year -old son.8:38
  145. When I was growing up, normal people drove old pickup trucks and rich people drove new pickup trucks.When I was growing up, normal people drove old pickup trucks and rich people drove new pickup trucks.8:41
  146. That was like the definition in my head.That was like the definition in my head.8:48
  147. Like if you had a new pickup truck, like, oh, there's a rich person.Like if you had a new pickup truck, like, oh, there's a rich person.8:49
  148. My son who's nine, his definition of rich is like a private jet in a private island, because he watches Mr.My son who's nine, his definition of rich is like a private jet in a private island, because he watches Mr.8:52
  149. Beast and it's like, oh, sit in the circle and you win a million bucks.Beast and it's like, oh, sit in the circle and you win a million bucks.8:57
  150. Kind of thing.Kind of thing.9:00
  151. It's a completely different level of expectations than even I had 20 or 30 years ago.It's a completely different level of expectations than even I had 20 or 30 years ago.9:00
  152. And so it's - And the hardest thing you're gonna have is that even though you're one of the most compelling financial experts on the planet, your kids won't listenAnd so it's - And the hardest thing you're gonna have is that even though you're one of the most compelling financial experts on the planet, your kids won't listen9:07
  153. to you, Morgan.to you, Morgan.9:15
  154. No, of course not.No, of course not.9:15
  155. Of course not.Of course not.9:16
  156. No.No.9:17
  157. I think that's really important place to start because you have already dropped so many takeaways.I think that's really important place to start because you have already dropped so many takeaways.9:18
  158. And one of them was developing a skill set of looking inside yourself for what matters rather than looking outside yourself at Mr.And one of them was developing a skill set of looking inside yourself for what matters rather than looking outside yourself at Mr.9:26
  159. Beast or what's on the social algorithm or what your neighbor is driving for that yardstick.Beast or what's on the social algorithm or what your neighbor is driving for that yardstick.9:36
  160. But you did mention the sense that you're falling behind.But you did mention the sense that you're falling behind.9:41
  161. And so many people today in particular are feeling like they're falling behind.And so many people today in particular are feeling like they're falling behind.9:45
  162. I mean, we have a 26 year old and a 24 year old and they are already feeling as though, okay, I'm not making enough money and how am II mean, we have a 26 year old and a 24 year old and they are already feeling as though, okay, I'm not making enough money and how am I9:51
  163. ever gonna buy a house and how am I gonna pay for a life?ever gonna buy a house and how am I gonna pay for a life?9:58
  164. If the person listening has that sense that they're falling behind, particularly if you're older and you say it's too late, like I've already blown it, Morgan, what do youIf the person listening has that sense that they're falling behind, particularly if you're older and you say it's too late, like I've already blown it, Morgan, what do you10:01
  165. want them to hear right now?want them to hear right now?10:13
  166. I think there's a couple of things.I think there's a couple of things.10:14
  167. One is empathy because there are areas in life where particularly a lot of people in their 20s, 30s and 40s are falling behind relative to previous generations, particularly somethingOne is empathy because there are areas in life where particularly a lot of people in their 20s, 30s and 40s are falling behind relative to previous generations, particularly something10:15
  168. like home ownership where it was more attainable in previous generations than it has been particularly in the last couple of years.like home ownership where it was more attainable in previous generations than it has been particularly in the last couple of years.10:24
  169. So empathy, this is not me saying, oh, you should just feel better, you should be more grateful for what you have.So empathy, this is not me saying, oh, you should just feel better, you should be more grateful for what you have.10:31
  170. You actually are doing fine.You actually are doing fine.10:36
  171. There is some empathy that has to be involved here.There is some empathy that has to be involved here.10:37
  172. And also for people that thought they were gonna be able to retire at a certain age, and then the cost of living has gone up so much or medicalAnd also for people that thought they were gonna be able to retire at a certain age, and then the cost of living has gone up so much or medical10:39
  173. bills are at a certain state that you're realizing, oh my God, I don't have enough money to be able to retire.bills are at a certain state that you're realizing, oh my God, I don't have enough money to be able to retire.10:46
  174. And so it is important to basically go, these are very real feelings that people have right now.And so it is important to basically go, these are very real feelings that people have right now.10:53
  175. And so if we start with empathy, where do we go next, Morgan?And so if we start with empathy, where do we go next, Morgan?11:00
  176. Well, I think you start with empathy because if somebody feels like they're falling behind, that's their truth.Well, I think you start with empathy because if somebody feels like they're falling behind, that's their truth.11:02
  177. But I think it's important to realize too that all happiness is just the gap between expectations and reality.But I think it's important to realize too that all happiness is just the gap between expectations and reality.11:06
  178. All right, say that again, all happiness.All right, say that again, all happiness.11:11
  179. All happiness is the gap between expectations and reality.All happiness is the gap between expectations and reality.11:13
  180. You have the life you're living, you have the life you expect to live, in between there is where you can find some level of happiness.You have the life you're living, you have the life you expect to live, in between there is where you can find some level of happiness.11:16
  181. The wider that gap is, the more miserable you're gonna feel.The wider that gap is, the more miserable you're gonna feel.11:22
  182. Okay, so let's talk about somebody who is in a situation where they thought they would be further along with their savings and they're starting to panic because they're worriedOkay, so let's talk about somebody who is in a situation where they thought they would be further along with their savings and they're starting to panic because they're worried11:25
  183. that their money's gonna run out before they die or they're not gonna be able to retire.that their money's gonna run out before they die or they're not gonna be able to retire.11:35
  184. How do you use that happiness definition right now if that's the reality?How do you use that happiness definition right now if that's the reality?11:39
  185. This is not true for everybody.This is not true for everybody.11:44
  186. This is not black and white, but there are a lot of these cases, I would say the majority of these cases, where the reason that person has not beenThis is not black and white, but there are a lot of these cases, I would say the majority of these cases, where the reason that person has not been11:45
  187. able to save as much as they thought is because their expectations, for many years probably, have been spiraling out of control.able to save as much as they thought is because their expectations, for many years probably, have been spiraling out of control.11:50
  188. And they were spending more money than they should have been because they were trying to chase who they wanted to be, even if it wasn't necessarily the level ofAnd they were spending more money than they should have been because they were trying to chase who they wanted to be, even if it wasn't necessarily the level of11:57
  189. lifestyle that they could afford.lifestyle that they could afford.12:06
  190. And so they were renting an apartment that was very nice because they had an expectation that that's where they should be and they were comparing themselves to other people,And so they were renting an apartment that was very nice because they had an expectation that that's where they should be and they were comparing themselves to other people,12:08
  191. even if it was kinda out of their budget.even if it was kinda out of their budget.12:15
  192. They were traveling and dressing and eating out in a way because that's who they felt that they should be even if they couldn't necessarily afford it.They were traveling and dressing and eating out in a way because that's who they felt that they should be even if they couldn't necessarily afford it.12:17
  193. Morgan, you're calling us out here, Morgan.Morgan, you're calling us out here, Morgan.12:25
  194. I'm calling everybody out.I'm calling everybody out.12:28
  195. Yes.Yes.12:29
  196. I've been in this situation too.I've been in this situation too.12:29
  197. There's no shame in it.There's no shame in it.12:31
  198. This is a very common thing that I think everyone will experience.This is a very common thing that I think everyone will experience.12:32
  199. And I think a lot of why I got interested in this topic, every book that I've written started with looking in the mirror and being like, when have IAnd I think a lot of why I got interested in this topic, every book that I've written started with looking in the mirror and being like, when have I12:36
  200. been envious?been envious?12:43
  201. When have my expectations spiraled out of control?When have my expectations spiraled out of control?12:44
  202. No one is immune to this.No one is immune to this.12:47
  203. So there's nothing to be, there's nothing to be ashamed of.So there's nothing to be, there's nothing to be ashamed of.12:49
  204. So there's a little bit of, because just in full disclosure, I entered my marriage with $10 ,000 of credit card debt that my husband did not know about andSo there's a little bit of, because just in full disclosure, I entered my marriage with $10 ,000 of credit card debt that my husband did not know about and12:51
  205. then proceeded to hide it from him.then proceeded to hide it from him.13:00
  206. But the truth is I just walked my credit card into stores and bought stuff I didn't need with money I didn't have.But the truth is I just walked my credit card into stores and bought stuff I didn't need with money I didn't have.13:02
  207. And then even if I look at what happened to my husband and I when I was 41 years old and his restaurants were going under and taking our houseAnd then even if I look at what happened to my husband and I when I was 41 years old and his restaurants were going under and taking our house13:07
  208. and our entire life savings with it, the truth is we did spend a lot of money we didn't have.and our entire life savings with it, the truth is we did spend a lot of money we didn't have.13:16
  209. We did break up that debt.We did break up that debt.13:23
  210. And I remember several years later, as we were starting to climb our way out, there was a level of relief.And I remember several years later, as we were starting to climb our way out, there was a level of relief.13:26
  211. When I could say to myself, both, I'm responsible for this mess, I can see how I made dumb decisions at the time because I had outsized expectations for howWhen I could say to myself, both, I'm responsible for this mess, I can see how I made dumb decisions at the time because I had outsized expectations for how13:38
  212. I thought things were gonna go.I thought things were gonna go.13:52
  213. And admitting it to myself in a weird way made me feel like, well, if I've got the power to make dumb decisions, then maybe if I wake up andAnd admitting it to myself in a weird way made me feel like, well, if I've got the power to make dumb decisions, then maybe if I wake up and13:54
  214. recognize that, I've got the power to make better decisions.recognize that, I've got the power to make better decisions.14:06
  215. Yes, that's absolutely true.Yes, that's absolutely true.14:10
  216. What happens with expectations for a lot of people is, look, if I said I want to be a 10 % better dad, that's a good goal.What happens with expectations for a lot of people is, look, if I said I want to be a 10 % better dad, that's a good goal.14:12
  217. But what does that mean?But what does that mean?14:20
  218. What does that even mean?What does that even mean?14:21
  219. How do I track that?How do I track that?14:21
  220. How do I measure that's impossible?How do I measure that's impossible?14:23
  221. But if I said I'm living in a one -bedroom apartment and I want a two -bedroom apartment, that makes sense.But if I said I'm living in a one -bedroom apartment and I want a two -bedroom apartment, that makes sense.14:24
  222. If I said I want three new pairs of jeans, that's easy to wrap your head around.If I said I want three new pairs of jeans, that's easy to wrap your head around.14:30
  223. Money is so quantifiable.Money is so quantifiable.14:34
  224. It's so easy to just say, right now I'm making $20 an hour, I want to get to $25.It's so easy to just say, right now I'm making $20 an hour, I want to get to $25.14:36
  225. Got it.Got it.14:41
  226. I can measure it so quickly that it becomes this thing where we chase money because it's so easy to measure.I can measure it so quickly that it becomes this thing where we chase money because it's so easy to measure.14:41
  227. And we chase spending because it's so easy to contextualize.And we chase spending because it's so easy to contextualize.14:47
  228. And so if you don't have a good idea of what a good life looks like, it's very easy to just say, a good life is one in which IAnd so if you don't have a good idea of what a good life looks like, it's very easy to just say, a good life is one in which I14:50
  229. have more money.have more money.14:59
  230. Because it's so much easier to understand then, how can I become a better dad?Because it's so much easier to understand then, how can I become a better dad?15:00
  231. How can I become a better parent, a better spouse, a better friend, a better worker?How can I become a better parent, a better spouse, a better friend, a better worker?15:04
  232. That's hard to wrap your head around.That's hard to wrap your head around.15:07
  233. Will Smith had this great, I thought he was so astute and profound.Will Smith had this great, I thought he was so astute and profound.15:09
  234. He wrote this in his biography.He wrote this in his biography.15:13
  235. He said, when he was depressed and poor, he could tell himself, if only I had more money, all my problems would go away.He said, when he was depressed and poor, he could tell himself, if only I had more money, all my problems would go away.15:14
  236. And that gave him hope.And that gave him hope.15:21
  237. I just need to go out and make more money.I just need to go out and make more money.15:22
  238. And once I have more money, all of my depression, all of my doubts will go away.And once I have more money, all of my depression, all of my doubts will go away.15:23
  239. And then he became rich and he was still depressed.And then he became rich and he was still depressed.15:27
  240. And then he said he lost hope because he couldn't say if only I had more money.And then he said he lost hope because he couldn't say if only I had more money.15:30
  241. And so we chase money because it's so easy to wrap our heads around.And so we chase money because it's so easy to wrap our heads around.15:34
  242. And we chase it with the idea that it's a solution to all of our problems.And we chase it with the idea that it's a solution to all of our problems.15:37
  243. Even if it can solve some problems, but not the biggest ones, the hole that you're trying to fill, the psychological hole that you're trying to fill, is probably notEven if it can solve some problems, but not the biggest ones, the hole that you're trying to fill, the psychological hole that you're trying to fill, is probably not15:40
  244. going to be filled with money.going to be filled with money.15:49
  245. So the takeaway that I've got from what you just shared, which is much deeper, is that if you're sitting there listening and you're saying, I'm so behind, I'm soSo the takeaway that I've got from what you just shared, which is much deeper, is that if you're sitting there listening and you're saying, I'm so behind, I'm so15:50
  246. behind, I'm so behind, there's two things to do.behind, I'm so behind, there's two things to do.15:59
  247. First of all, you're in the right place because we're going to be learning from you exactly what to do, Morgan.First of all, you're in the right place because we're going to be learning from you exactly what to do, Morgan.16:02
  248. And one of the first things you said is, it's not too late because there are simple, you even said kindergarten level behavior changes that you can make that willAnd one of the first things you said is, it's not too late because there are simple, you even said kindergarten level behavior changes that you can make that will16:08
  249. help you be good with money.help you be good with money.16:17
  250. But the deeper thing to ask yourself is, what is the hole that money is trying to fill for me?But the deeper thing to ask yourself is, what is the hole that money is trying to fill for me?16:18
  251. And are there things that I can do right now in terms of redefining what it means in my 20s or my 60s to be a good friend or toAnd are there things that I can do right now in terms of redefining what it means in my 20s or my 60s to be a good friend or to16:25
  252. have a good life or to take better care of myself that don't involve hitting myself over the head about my financial life?have a good life or to take better care of myself that don't involve hitting myself over the head about my financial life?16:34
  253. Exactly.Exactly.16:43
  254. That's it.That's it.16:44
  255. Got it.Got it.16:44
  256. You know, one of the things I want to talk about before we really start unpacking some of the tactics is that at this exact moment in time, it isYou know, one of the things I want to talk about before we really start unpacking some of the tactics is that at this exact moment in time, it is16:45
  257. a really challenging moment when it comes to money, finances, the job market.a really challenging moment when it comes to money, finances, the job market.16:53
  258. If you really identify with that sense that I'm actually scared, I'm scared I can't get a job, I'm scared about being able to make it.If you really identify with that sense that I'm actually scared, I'm scared I can't get a job, I'm scared about being able to make it.17:01
  259. Where do you start, Morgan?Where do you start, Morgan?17:10
  260. I think if somebody says I'm scared about my money, that's their truth and you have to empathize with that.I think if somebody says I'm scared about my money, that's their truth and you have to empathize with that.17:12
  261. If someone were to say it is worse now than it was for previous generations, that I think you can push back on a little bit more.If someone were to say it is worse now than it was for previous generations, that I think you can push back on a little bit more.17:16
  262. And you can say because you could look back at how people lived in the 1950s and the 1960s and the 1970s and say, look, I empathize with how scaredAnd you can say because you could look back at how people lived in the 1950s and the 1960s and the 1970s and say, look, I empathize with how scared17:24
  263. you are today.you are today.17:32
  264. It is probably not true that we are worse off today than we were in previous generations.It is probably not true that we are worse off today than we were in previous generations.17:33
  265. One thing that I've always thought is very interesting is if you ask most Americans, when was peak middle class prosperity?One thing that I've always thought is very interesting is if you ask most Americans, when was peak middle class prosperity?17:38
  266. When were the glory days?When were the glory days?17:44
  267. A lot of people will point to the 1950s is what they'll point at as peak middle class prosperity.A lot of people will point to the 1950s is what they'll point at as peak middle class prosperity.17:47
  268. But what's interesting is that if you looked at how the average middle class family lived in the 1950s and who we are aspiring to want to go back to,But what's interesting is that if you looked at how the average middle class family lived in the 1950s and who we are aspiring to want to go back to,17:53
  269. it is a quality of life that we would consider abject poverty today.it is a quality of life that we would consider abject poverty today.18:01
  270. The average middle class family house in the 1950s was about 800 square feet for two bedrooms for you and your four kids, no air conditioning, no washer and dryer,The average middle class family house in the 1950s was about 800 square feet for two bedrooms for you and your four kids, no air conditioning, no washer and dryer,18:03
  271. no going down the list of what it was like back then.no going down the list of what it was like back then.18:13
  272. They were very happy.They were very happy.18:15
  273. They were very content with it back then, but it's not a level of contentment that you would have today.They were very content with it back then, but it's not a level of contentment that you would have today.18:16
  274. And so a lot of what is with finances is that it's not necessarily that these things will make you happier.And so a lot of what is with finances is that it's not necessarily that these things will make you happier.18:21
  275. If you were to have more money, it's not necessarily that you would be happier.If you were to have more money, it's not necessarily that you would be happier.18:27
  276. And that when most people think, oh, if only I had a bigger house, then I'd be happy.And that when most people think, oh, if only I had a bigger house, then I'd be happy.18:32
  277. And when you imagine yourself taking a fancy vacation, you imagine how happy you would be.And when you imagine yourself taking a fancy vacation, you imagine how happy you would be.18:36
  278. The emotion that you're actually thinking about is not happiness, it's contentment.The emotion that you're actually thinking about is not happiness, it's contentment.18:40
  279. If I imagine myself in Hawaii with my kids next year, and I'm just envisioning that in my head, I can come up with this emotion inside and be like,If I imagine myself in Hawaii with my kids next year, and I'm just envisioning that in my head, I can come up with this emotion inside and be like,18:45
  280. oh, that would be great.oh, that would be great.18:53
  281. I would be so happy with that.I would be so happy with that.18:54
  282. But actually the emotion that I'm envisioning is being content with that.But actually the emotion that I'm envisioning is being content with that.18:56
  283. It's being in Hawaii and saying, this is enough.It's being in Hawaii and saying, this is enough.18:59
  284. This is all I want.This is all I want.19:01
  285. I don't want anything else.I don't want anything else.19:03
  286. What actually happens to people, if they do go to Hawaii with their kids, is they're sitting on the beach and they say, if only I had stayed at theWhat actually happens to people, if they do go to Hawaii with their kids, is they're sitting on the beach and they say, if only I had stayed at the19:04
  287. nicer hotel, if only we had stayed for a couple of days longer, if only we had eaten at the nicer restaurant last night, how come those people got anicer hotel, if only we had stayed for a couple of days longer, if only we had eaten at the nicer restaurant last night, how come those people got a19:11
  288. better room?better room?19:18
  289. How come they got better beach chairs?How come they got better beach chairs?19:18
  290. And so you're not actually content with the experience that you're having.And so you're not actually content with the experience that you're having.19:20
  291. And so when you realize what you're actually chasing is contentment.And so when you realize what you're actually chasing is contentment.19:23
  292. You're not chasing more, you're chasing just, I just want to be happy with what I have.You're not chasing more, you're chasing just, I just want to be happy with what I have.19:26
  293. The first step is realizing that a lot of your money woes and a lot of what you're feeling in terms of falling behind and a lot of your gapThe first step is realizing that a lot of your money woes and a lot of what you're feeling in terms of falling behind and a lot of your gap19:31
  294. between what you have and what you want is solely a factor of your expectations.between what you have and what you want is solely a factor of your expectations.19:39
  295. What if you don't think you're good with money though?What if you don't think you're good with money though?19:43
  296. Like, because for a long time I had a story in my head, I'm just not good with money.Like, because for a long time I had a story in my head, I'm just not good with money.19:45
  297. I'm bad with money.I'm bad with money.19:50
  298. And let's say you're somebody who's gone through a divorce, you're financially wrecked, you gave all the power to your partner, now you're starting over.And let's say you're somebody who's gone through a divorce, you're financially wrecked, you gave all the power to your partner, now you're starting over.19:51
  299. Can anyone get good with money for real?Can anyone get good with money for real?20:01
  300. You can if you want to.You can if you want to.20:03
  301. And I think the people who say I'm not good with money don't want to be.And I think the people who say I'm not good with money don't want to be.20:04
  302. That's the, they use that as their excuse to say.That's the, they use that as their excuse to say.20:08
  303. Come on, really?Come on, really?20:11
  304. I think that they use that as their excuse.I think that they use that as their excuse.20:12
  305. This is not a difficult thing to wrap your head around.This is not a difficult thing to wrap your head around.20:13
  306. This is very basic arithmetic.This is very basic arithmetic.20:16
  307. Spend less money than you make, save the difference, be patient.Spend less money than you make, save the difference, be patient.20:18
  308. That's it.That's it.20:22
  309. That's what we're talking about.That's what we're talking about.20:22
  310. You could explain this to a five -year -old.You could explain this to a five -year -old.20:23
  311. And so if you're saying I'm not good with money, it's you're making a choice to not get better.And so if you're saying I'm not good with money, it's you're making a choice to not get better.20:24
  312. Nothing is easier than bad financial habits that you want to have.Nothing is easier than bad financial habits that you want to have.20:30
  313. Like, when you live in a society that it's very easy to overspend, a lot of people are willing to give you credit cards, give you debt, is very easyLike, when you live in a society that it's very easy to overspend, a lot of people are willing to give you credit cards, give you debt, is very easy20:35
  314. to have bad financial habits.to have bad financial habits.20:42
  315. And if you want those, that's an easy thing to do.And if you want those, that's an easy thing to do.20:44
  316. As soon as you actually want it, this is not a difficult thing for anybody.As soon as you actually want it, this is not a difficult thing for anybody.20:46
  317. This conversation reminds me of something that I saw a musician say.This conversation reminds me of something that I saw a musician say.20:51
  318. I wish I could remember who it was, but I saw a musician saying, everybody loves it when I tell the story about how I had to live in myI wish I could remember who it was, but I saw a musician saying, everybody loves it when I tell the story about how I had to live in my20:54
  319. car for a year while I was just starting out, but nobody actually wants to live in their car for a year.car for a year while I was just starting out, but nobody actually wants to live in their car for a year.21:01
  320. Nobody ever wants to do it.Nobody ever wants to do it.21:07
  321. While they're starting out.While they're starting out.21:08
  322. Right.Right.21:09
  323. And so a lot of these things, for people who are in debt, you are one of these people, you can empathize with this, I know, is that, yes, it'sAnd so a lot of these things, for people who are in debt, you are one of these people, you can empathize with this, I know, is that, yes, it's21:09
  324. going to be a sacrifice to get out of this.going to be a sacrifice to get out of this.21:18
  325. This might require a downshift in lifestyle relative to what you are used to.This might require a downshift in lifestyle relative to what you are used to.21:20
  326. And so for a lot of people who say, I'm not good with money, I think what they're actually saying is I don't want to make the sacrifice.And so for a lot of people who say, I'm not good with money, I think what they're actually saying is I don't want to make the sacrifice.21:25
  327. I'm unwilling to make the sacrifice to do it.I'm unwilling to make the sacrifice to do it.21:31
  328. And I think that is true.And I think that is true.21:34
  329. Now, what is true, the reason that you like the story about the guy living in the car is because I think people actually love stories or doing this themselvesNow, what is true, the reason that you like the story about the guy living in the car is because I think people actually love stories or doing this themselves21:36
  330. of suffering for a noble goal.of suffering for a noble goal.21:46
  331. I think this is true in so many aspects of humanity, that it's not that people, like humans are very willing to suffer and put in hard work and sweatI think this is true in so many aspects of humanity, that it's not that people, like humans are very willing to suffer and put in hard work and sweat21:49
  332. if the goal is noble enough.if the goal is noble enough.21:58
  333. I'm wondering if the noble goal for getting good with money is so that you'll be content with your life, not so that you'll make a lot of money.I'm wondering if the noble goal for getting good with money is so that you'll be content with your life, not so that you'll make a lot of money.22:00
  334. To me, the noble goal, what it's always been for myself, and I think this is true for the majority of people, is independence.To me, the noble goal, what it's always been for myself, and I think this is true for the majority of people, is independence.22:08
  335. I have no desire to be rich in the sense of a big, a giant house, flashy cars.I have no desire to be rich in the sense of a big, a giant house, flashy cars.22:14
  336. I have no desire to live that life.I have no desire to live that life.22:20
  337. I want to be independent.I want to be independent.22:22
  338. I want to wake up every morning and say, I can do whatever I want today.I want to wake up every morning and say, I can do whatever I want today.22:23
  339. And I'm using money as a tool to foster that.And I'm using money as a tool to foster that.22:26
  340. That's always been my goal.That's always been my goal.22:29
  341. Now, that's very different from saying, I want a bigger house, or I want a house.Now, that's very different from saying, I want a bigger house, or I want a house.22:30
  342. It's a goal of independence.It's a goal of independence.22:36
  343. And my grandmother -in -law who had no money was completely independent.And my grandmother -in -law who had no money was completely independent.22:38
  344. She was beholden to no one else's influence, but her own.She was beholden to no one else's influence, but her own.22:41
  345. And she lived an amazing life because of it.And she lived an amazing life because of it.22:45
  346. There are billionaires, there are deco -billionaires out there who are completely beholden to the opinions and the influence of other people.There are billionaires, there are deco -billionaires out there who are completely beholden to the opinions and the influence of other people.22:47
  347. And so there are a lot of people for whom money is a financial asset, but it's a psychological liability.And so there are a lot of people for whom money is a financial asset, but it's a psychological liability.22:55
  348. It completely controls their identity and who they are.It completely controls their identity and who they are.23:01
  349. And there's other people who actually don't have that much money.And there's other people who actually don't have that much money.23:04
  350. They have no psychological liability.They have no psychological liability.23:07
  351. They're in complete control over their personality and their goals.They're in complete control over their personality and their goals.23:09
  352. I've often used this.I've often used this.23:14
  353. It's a very imperfect idea, but I think about if I was on a deserted island, maybe with just me and my family, nobody else could see how I wasIt's a very imperfect idea, but I think about if I was on a deserted island, maybe with just me and my family, nobody else could see how I was23:16
  354. living.living.23:24
  355. Nobody else could see my house and what else could see my car.Nobody else could see my house and what else could see my car.23:25
  356. It's completely invisible to everybody else.It's completely invisible to everybody else.23:28
  357. What kind of lifestyle would I live?What kind of lifestyle would I live?23:30
  358. If nobody else was watching, what kind of lifestyle would I choose to live?If nobody else was watching, what kind of lifestyle would I choose to live?23:32
  359. And in that situation, myself and I think most people would instantly shift from status to utility.And in that situation, myself and I think most people would instantly shift from status to utility.23:35
  360. I have no interest in status if nobody can watch it.I have no interest in status if nobody can watch it.23:44
  361. I have interest in utility.I have interest in utility.23:47
  362. And so the kind of house that I would want to live in, the kind of car that I would drive, would instantly shift from what are other people impressedAnd so the kind of house that I would want to live in, the kind of car that I would drive, would instantly shift from what are other people impressed23:48
  363. by towards what is actually going to foster a good life for myself and my family.by towards what is actually going to foster a good life for myself and my family.23:56
  364. And they're very different things.And they're very different things.24:00
  365. You could make $100 million a year and feel like you're falling behind if you're chasing other people.You could make $100 million a year and feel like you're falling behind if you're chasing other people.24:02
  366. There's a great quote from the comedian Jimmy Carr, where he says, everybody is jealous of what you've got.There's a great quote from the comedian Jimmy Carr, where he says, everybody is jealous of what you've got.24:07
  367. Nobody is jealous of how you got it.Nobody is jealous of how you got it.24:12
  368. And that's another one of these points.And that's another one of these points.24:15
  369. It's very easy for me or you to look at people who are more successful than we are and say, if we had that level of success, I would beIt's very easy for me or you to look at people who are more successful than we are and say, if we had that level of success, I would be24:16
  370. happier.happier.24:24
  371. Because when we look at them, I can see your house.Because when we look at them, I can see your house.24:24
  372. I can see your car.I can see your car.24:28
  373. I can see your clothes.I can see your clothes.24:29
  374. I can see the material aspect of your success.I can see the material aspect of your success.24:29
  375. I cannot see the hard work and the stress of how you got it and what it took to get there.I cannot see the hard work and the stress of how you got it and what it took to get there.24:32
  376. So this is one of the problems with envy and financial envy that we have for other people is that you don't have a good sense of what their lifeSo this is one of the problems with envy and financial envy that we have for other people is that you don't have a good sense of what their life24:38
  377. was and what else is going on in their life outside of money.was and what else is going on in their life outside of money.24:45
  378. And this is why some of the studies that are so hard to wrap your head around, because it's so hard to even believe that these are true, the studiesAnd this is why some of the studies that are so hard to wrap your head around, because it's so hard to even believe that these are true, the studies24:49
  379. that show that people who are wealthy are not necessarily as happy as you would think they would be.that show that people who are wealthy are not necessarily as happy as you would think they would be.24:55
  380. But here's the thing.But here's the thing.24:59
  381. When I hear that said, I'm like, who cares?When I hear that said, I'm like, who cares?24:59
  382. Because I just want to be wealthy.Because I just want to be wealthy.25:01
  383. You know what I'm saying?You know what I'm saying?25:02
  384. I know.I know.25:03
  385. Like, I'll let them be unhappy.Like, I'll let them be unhappy.25:04
  386. I'll be the one person who's wealthy who's happy.I'll be the one person who's wealthy who's happy.25:04
  387. I promise you, Morgan.I promise you, Morgan.25:07
  388. Or there's a lot of people who say, OK, that might be true, but let me experience it myself.Or there's a lot of people who say, OK, that might be true, but let me experience it myself.25:08
  389. Yes.Yes.25:11
  390. They're like, let me get there.They're like, let me get there.25:12
  391. Because I think the pull is so profound in our heads that if only I had more money, these problems would go away.Because I think the pull is so profound in our heads that if only I had more money, these problems would go away.25:13
  392. It seems like how could that not be true?It seems like how could that not be true?25:20
  393. And I think the people who have experienced it would say, no, it can be true, just much less than you thought.And I think the people who have experienced it would say, no, it can be true, just much less than you thought.25:23
  394. As a financial expert with more than two decades of experience of research and writing and teaching this topic, what's the number one thing that keeps people broke?As a financial expert with more than two decades of experience of research and writing and teaching this topic, what's the number one thing that keeps people broke?25:29
  395. It's this overwhelming sense of keeping up with other people.It's this overwhelming sense of keeping up with other people.25:41
  396. And this overwhelming sense of other people have more than I do.And this overwhelming sense of other people have more than I do.25:45
  397. And they're doing better than I am.And they're doing better than I am.25:48
  398. And they're happier than I am.And they're happier than I am.25:50
  399. And that treadmill has no end.And that treadmill has no end.25:52
  400. There's no end to that treadmill where you're going to say, if only I had this much money, then I'd be content.There's no end to that treadmill where you're going to say, if only I had this much money, then I'd be content.25:54
  401. If only I had a bigger house, then I'd be content.If only I had a bigger house, then I'd be content.26:00
  402. Once you're on the treadmill, it goes on forever.Once you're on the treadmill, it goes on forever.26:03
  403. And if you're on it, it's almost impossible to feel like you're doing well with money.And if you're on it, it's almost impossible to feel like you're doing well with money.26:06
  404. There's no amount of satiation of if you've got a raise, then you'll be OK.There's no amount of satiation of if you've got a raise, then you'll be OK.26:10
  405. If you bought these nicer clothes, then I would be happy.If you bought these nicer clothes, then I would be happy.26:16
  406. Then I would be content with it.Then I would be content with it.26:20
  407. You can be content with a pretty low level of material items.You can be content with a pretty low level of material items.26:21
  408. Of course, there's a basic need of food and shelter, whatnot.Of course, there's a basic need of food and shelter, whatnot.26:25
  409. Above what you need, you move into the realm of what you want.Above what you need, you move into the realm of what you want.26:28
  410. Well, I think we're all there.Well, I think we're all there.26:32
  411. Like any one of us, if we're being honest with ourselves, can walk into our closet and say there are roughly 12 pieces of clothing that we wear all theLike any one of us, if we're being honest with ourselves, can walk into our closet and say there are roughly 12 pieces of clothing that we wear all the26:34
  412. time.time.26:41
  413. Yes.Yes.26:41
  414. And the rest of it were all things that I wanted in the moment, or I thought I needed, or I thought would impress somebody if I were going toAnd the rest of it were all things that I wanted in the moment, or I thought I needed, or I thought would impress somebody if I were going to26:42
  415. a wedding.a wedding.26:48
  416. But you didn't actually need it.But you didn't actually need it.26:49
  417. And that is what keeps people broke.And that is what keeps people broke.26:50
  418. That's it.That's it.26:52
  419. It's the simplest thing.It's the simplest thing.26:53
  420. I think people know it.I think people know it.26:54
  421. They may not want to hear it, but they know it.They may not want to hear it, but they know it.26:55
  422. That it's your desire to keep up with other people.That it's your desire to keep up with other people.26:57
  423. Your mega bestseller, the psychology of money, changed my life, changed the way I think about money, changed my mindset about money.Your mega bestseller, the psychology of money, changed my life, changed the way I think about money, changed my mindset about money.27:00
  424. And I want to read to you on page 41.And I want to read to you on page 41.27:07
  425. This is the chapter, Never Enough.This is the chapter, Never Enough.27:11
  426. And you write, the hardest financial skill is getting the goalpost to stop moving.And you write, the hardest financial skill is getting the goalpost to stop moving.27:16
  427. If expectations rise with results, there is no logic in striving for more, because you'll feel the same after putting in extra effort.If expectations rise with results, there is no logic in striving for more, because you'll feel the same after putting in extra effort.27:22
  428. It gets dangerous when the taste of having more, more money, more power, more prestige, increases ambition, faster than satisfaction.It gets dangerous when the taste of having more, more money, more power, more prestige, increases ambition, faster than satisfaction.27:30
  429. In that case, one step forward pushes the goalpost two steps ahead.In that case, one step forward pushes the goalpost two steps ahead.27:41
  430. You feel as if you're falling behind.You feel as if you're falling behind.27:46
  431. And the only way to catch up is to take greater and greater amounts of risk.And the only way to catch up is to take greater and greater amounts of risk.27:48
  432. Can you unpack that for us?Can you unpack that for us?27:54
  433. It's funny when you read that.It's funny when you read that.27:55
  434. I remember writing those sentences.I remember writing those sentences.27:56
  435. I remember where I was when I wrote those specific sentences.I remember where I was when I wrote those specific sentences.27:58
  436. I was in my basement at a house in Virginia where I wrote this book.I was in my basement at a house in Virginia where I wrote this book.28:01
  437. And I remember writing that and thinking, I mentioned this earlier, but so much of what I write about is self -reflection.And I remember writing that and thinking, I mentioned this earlier, but so much of what I write about is self -reflection.28:04
  438. And it's not that I've mastered these things, and I'm just trying to show you how smart I am.And it's not that I've mastered these things, and I'm just trying to show you how smart I am.28:11
  439. It's like, I wrote that because I've fallen for that trap.It's like, I wrote that because I've fallen for that trap.28:15
  440. All the time.All the time.28:18
  441. It's true that the expectations game has no ending.It's true that the expectations game has no ending.28:19
  442. There's always somebody who is getting richer faster than you.There's always somebody who is getting richer faster than you.28:24
  443. And if you're always just seeking validation, if your key to happiness is always, if only I had what that person has, you're never going to be satisfied with whatAnd if you're always just seeking validation, if your key to happiness is always, if only I had what that person has, you're never going to be satisfied with what28:27
  444. you have.you have.28:36
  445. And the more dangerous thing, I think, is once you have that mindset, that if only I had more, I would be happier, then it kind of grows exponentially.And the more dangerous thing, I think, is once you have that mindset, that if only I had more, I would be happier, then it kind of grows exponentially.28:36
  446. Because if you tell yourself, I'll be happy once I have $10 ,000, and you get $10 ,000, and you're like, oh, maybe it's $100 ,000.Because if you tell yourself, I'll be happy once I have $10 ,000, and you get $10 ,000, and you're like, oh, maybe it's $100 ,000.28:46
  447. If I had $100 ,000, then I'd be happy.If I had $100 ,000, then I'd be happy.28:52
  448. And then maybe you're fortunate enough to get that money.And then maybe you're fortunate enough to get that money.28:55
  449. And then it's, oh, maybe it's a million.And then it's, oh, maybe it's a million.28:57
  450. It grows exponentially.It grows exponentially.28:58
  451. And so I also think that there is this thing that happens, at least it happened for me, that as I started to feel like I wasn't under such crushingAnd so I also think that there is this thing that happens, at least it happened for me, that as I started to feel like I wasn't under such crushing29:00
  452. debt, or I got some reward at work, a small bonus, whatever, I immediately upticked the amount of money, or the expense of the thing that I was already buying.debt, or I got some reward at work, a small bonus, whatever, I immediately upticked the amount of money, or the expense of the thing that I was already buying.29:09
  453. Right.Right.29:21
  454. And part of that, I think, is fine.And part of that, I think, is fine.29:21
  455. I think people can spend money in a way that's going to make them happier.I think people can spend money in a way that's going to make them happier.29:23
  456. There are some people who would give you the advice of, like, it's never going to make you happier.There are some people who would give you the advice of, like, it's never going to make you happier.29:26
  457. Just save everything that you can.Just save everything that you can.29:30
  458. That's not my message.That's not my message.29:32
  459. I think you can spend money.I think you can spend money.29:34
  460. I found ways of spending money in my own household.I found ways of spending money in my own household.29:35
  461. I'm like, oh, that was well worth it.I'm like, oh, that was well worth it.29:38
  462. But I also, back to the expectations thing, I grew up around Lake Tahoe, California.But I also, back to the expectations thing, I grew up around Lake Tahoe, California.29:39
  463. Okay.Okay.29:43
  464. And this was before Tech Money, where Tahoe and Truckee, the town that I lived in, was not very wealthy.And this was before Tech Money, where Tahoe and Truckee, the town that I lived in, was not very wealthy.29:44
  465. It is now because Tech Money came in.It is now because Tech Money came in.29:48
  466. But back then, it was very much a middle -class town.But back then, it was very much a middle -class town.29:50
  467. And then I went to college in Los Angeles.And then I went to college in Los Angeles.29:53
  468. And I couldn't believe making that shift from middle -class mountain town to Beverly Hills kind of area, what it did to my definition of rich.And I couldn't believe making that shift from middle -class mountain town to Beverly Hills kind of area, what it did to my definition of rich.29:56
  469. As I said earlier, it used to be that my definition of rich was a new pickup truck.As I said earlier, it used to be that my definition of rich was a new pickup truck.30:08
  470. A new F -150 was that's a rich person.A new F -150 was that's a rich person.30:11
  471. And I moved to LA and it just exploded.And I moved to LA and it just exploded.30:14
  472. No matter how successful you are, you pull up to a stoplight.No matter how successful you are, you pull up to a stoplight.30:17
  473. And even if you're driving a Lamborghini, there's 17 others right there.And even if you're driving a Lamborghini, there's 17 others right there.30:20
  474. And you never feel like you're getting enough.And you never feel like you're getting enough.30:23
  475. And the conditions for happiness, I think, were much greater in that middle -class town.And the conditions for happiness, I think, were much greater in that middle -class town.30:26
  476. Now, I was, I did a pretty good job in LA in my own mind of still keeping my expectations in check.Now, I was, I did a pretty good job in LA in my own mind of still keeping my expectations in check.30:31
  477. I think a lot of that was fear.I think a lot of that was fear.30:37
  478. I always had a fear that I was never going to make it.I always had a fear that I was never going to make it.30:38
  479. And so I was saving as much as I could just out of a sense of fear.And so I was saving as much as I could just out of a sense of fear.30:41
  480. But if I look at everybody else, who was happier?But if I look at everybody else, who was happier?30:47
  481. It was the people who were living a modest life, enjoyed their family, had good time with their friends, focused on their health, and lived what was, by comparison toIt was the people who were living a modest life, enjoyed their family, had good time with their friends, focused on their health, and lived what was, by comparison to30:51
  482. others, a very modest life.others, a very modest life.31:01
  483. And so I think about that now.And so I think about that now.31:03
  484. Like, what should your aspiration be?Like, what should your aspiration be?31:04
  485. It's interesting with parents.It's interesting with parents.31:07
  486. If you ask parents, what do you want for your kids, particularly if their kids are young?If you ask parents, what do you want for your kids, particularly if their kids are young?31:08
  487. Most parents will say, I just want them to be happy when they're older.Most parents will say, I just want them to be happy when they're older.31:13
  488. And then if you say, well, do you want them to be rich and successful?And then if you say, well, do you want them to be rich and successful?31:16
  489. The parents will probably say, well, yeah, that would probably be great, but I just want them to be happy.The parents will probably say, well, yeah, that would probably be great, but I just want them to be happy.31:20
  490. And I think parents say that because you know there's a difference between the two.And I think parents say that because you know there's a difference between the two.31:24
  491. You know there's a difference between being rich and being happy.You know there's a difference between being rich and being happy.31:27
  492. You've experienced it as an adult.You've experienced it as an adult.31:30
  493. And so even if your kids are middle class, doing modest by expectations, you know that they can be happy if they're keeping their expectations in check and they're focusingAnd so even if your kids are middle class, doing modest by expectations, you know that they can be happy if they're keeping their expectations in check and they're focusing31:32
  494. on the things that matter.on the things that matter.31:43
  495. Well, what I love that you keep coming back to is that your definition truly for the word happiness and the way we casually use it is contentment, which meansWell, what I love that you keep coming back to is that your definition truly for the word happiness and the way we casually use it is contentment, which means31:44
  496. you are in the present moment of your life and you are not seeking something more.you are in the present moment of your life and you are not seeking something more.31:51
  497. You are able to be okay with where things are and where things aren't.You are able to be okay with where things are and where things aren't.31:58
  498. How can somebody figure out why they're buying something?How can somebody figure out why they're buying something?32:03
  499. Because I think most of us mindlessly spend money because in the moment we want that thing, or we're bored or stressed or whatever, like most people don't actually knowBecause I think most of us mindlessly spend money because in the moment we want that thing, or we're bored or stressed or whatever, like most people don't actually know32:08
  500. why they're spending money.why they're spending money.32:17
  501. So how can you, Morgan, start to become conscious of exactly why you're spending your money on things?So how can you, Morgan, start to become conscious of exactly why you're spending your money on things?32:18
  502. I think with every dollar that you spend, it's always one of two buckets.I think with every dollar that you spend, it's always one of two buckets.32:25
  503. And you should ask yourself which bucket this falls into.And you should ask yourself which bucket this falls into.32:30
  504. Is buying this thing going to make me and my family happier or am I buying it to impress other people, most of whom are strangers?Is buying this thing going to make me and my family happier or am I buying it to impress other people, most of whom are strangers?32:32
  505. It's always one of those two things.It's always one of those two things.32:41
  506. If I'm buying food, that's for me and my family, clear as day.If I'm buying food, that's for me and my family, clear as day.32:43
  507. If I'm buying new clothes, a lot of that might be or new car, a lot of that might be my attempt to impress strangers, most of whom are notIf I'm buying new clothes, a lot of that might be or new car, a lot of that might be my attempt to impress strangers, most of whom are not32:46
  508. paying any attention to you whatsoever.paying any attention to you whatsoever.32:55
  509. It's always one of those two things.It's always one of those two things.32:57
  510. Do you want to use money as a tool to live a better life?Do you want to use money as a tool to live a better life?32:58
  511. Or do you want to use money as a yardstick of status to measure yourself against others by?Or do you want to use money as a yardstick of status to measure yourself against others by?33:01
  512. It's completely normal and natural to have that.It's completely normal and natural to have that.33:06
  513. But when you realize that that's the game that you're playing, that a lot of these aspirations that I have are to impress people who are not even paying attentionBut when you realize that that's the game that you're playing, that a lot of these aspirations that I have are to impress people who are not even paying attention33:09
  514. to me and they're not paying attention to me because they're busy worrying about themselves.to me and they're not paying attention to me because they're busy worrying about themselves.33:16
  515. They're busy in their saying, are people impressed with me?They're busy in their saying, are people impressed with me?33:20
  516. Are people looking at me?Are people looking at me?33:23
  517. That's a huge part of what's going on inside these people's heads is that their biggest aspiration in life is trying to impress strangers who are not even looking toThat's a huge part of what's going on inside these people's heads is that their biggest aspiration in life is trying to impress strangers who are not even looking to33:26
  518. begin with.begin with.33:36
  519. Well, that was one of the big lessons from your work for me, which is every dollar you spend falls in two buckets.Well, that was one of the big lessons from your work for me, which is every dollar you spend falls in two buckets.33:36
  520. One of those two things.One of those two things.33:44
  521. You're either spending money to make other people think something about you or you're spending money in a way that makes you feel good about you.You're either spending money to make other people think something about you or you're spending money in a way that makes you feel good about you.33:45
  522. How do you know the difference between the pair of jeans that you're about to buy that you don't need, but they look really cool and you think you're goingHow do you know the difference between the pair of jeans that you're about to buy that you don't need, but they look really cool and you think you're going33:52
  523. to look good in them and you're also feeling bad about your body so you hit spend?to look good in them and you're also feeling bad about your body so you hit spend?34:02
  524. How do you dissect that?How do you dissect that?34:06
  525. Because I think a lot of us don't understand exactly why we're buying things.Because I think a lot of us don't understand exactly why we're buying things.34:08
  526. I had this experience in college.I had this experience in college.34:13
  527. I wrote about it in my first book, The Psychology of Money.I wrote about it in my first book, The Psychology of Money.34:15
  528. I was a valet at a five -star hotel in Los Angeles.I was a valet at a five -star hotel in Los Angeles.34:17
  529. I love this story.I love this story.34:20
  530. It was so much, it was such a cool job.It was so much, it was such a cool job.34:21
  531. There's never been a better job.There's never been a better job.34:23
  532. I would go back and do that job again.I would go back and do that job again.34:24
  533. Why did you love that job so much?Why did you love that job so much?34:26
  534. There's two things.There's two things.34:27
  535. I got to drive very fancy cars and in the mind of a 19 -year -old boy parking a Ferrari, there's nothing better in the world.I got to drive very fancy cars and in the mind of a 19 -year -old boy parking a Ferrari, there's nothing better in the world.34:28
  536. And two, I didn't really realize this explicitly at the time, but it was my first window into the psychology of very wealthy people.And two, I didn't really realize this explicitly at the time, but it was my first window into the psychology of very wealthy people.34:35
  537. And that to me was absolutely, I learned so much during those years, age 18 to 22.And that to me was absolutely, I learned so much during those years, age 18 to 22.34:42
  538. And one of the things I realized, and I remember when this hit me during a shift, that if somebody came into the hotel driving a Ferrari or a Lamborghini,And one of the things I realized, and I remember when this hit me during a shift, that if somebody came into the hotel driving a Ferrari or a Lamborghini,34:48
  539. I would stop and look at the car and be impressed, but I would never look at the driver and say, that guy's so cool.I would stop and look at the car and be impressed, but I would never look at the driver and say, that guy's so cool.34:57
  540. What I would do is I would imagine myself as the driver and I imagine that if I was driving, people would look at me and say, look at Morgan,What I would do is I would imagine myself as the driver and I imagine that if I was driving, people would look at me and say, look at Morgan,35:05
  541. he's so cool.he's so cool.35:12
  542. And one day I was like, do you see the irony?And one day I was like, do you see the irony?35:13
  543. I don't care about the driver, but I want to be the driver because I think people will care about me.I don't care about the driver, but I want to be the driver because I think people will care about me.35:15
  544. And it was this stark realization of like, nobody is thinking about you as much as you are.And it was this stark realization of like, nobody is thinking about you as much as you are.35:20
  545. They're busy thinking about themselves.They're busy thinking about themselves.35:25
  546. And even when people are impressed with your house or your car, what they're actually doing is saying, if I had Mel's house, if I had Morgan's car, then IAnd even when people are impressed with your house or your car, what they're actually doing is saying, if I had Mel's house, if I had Morgan's car, then I35:27
  547. would be happy.would be happy.35:36
  548. Then people would look at me.Then people would look at me.35:37
  549. And so the idea that everyone is pretty selfish and self centered in that sense where they're not impressed with you, they might be impressed with your stuff because they'reAnd so the idea that everyone is pretty selfish and self centered in that sense where they're not impressed with you, they might be impressed with your stuff because they're35:38
  550. imagining having your stuff.imagining having your stuff.35:48
  551. Once I came to terms with that, my desire for impressing other people plunged.Once I came to terms with that, my desire for impressing other people plunged.35:50
  552. Didn't plunge to zero.Didn't plunge to zero.35:56
  553. I don't want to walk around in a burlap sack.I don't want to walk around in a burlap sack.35:58
  554. I want to impress my coworkers and my I want to look professional.I want to impress my coworkers and my I want to look professional.36:00
  555. I want to, you know, make money and then once you feel like you need somebody to help you feel like somebody's helped you feel like somebody's helped you feelI want to, you know, make money and then once you feel like you need somebody to help you feel like somebody's helped you feel like somebody's helped you feel36:04
  556. like somebody's helped you feel like somebody's helped you feel like somebody's helped you feel like somebody's helped you feel like somebody's helped you feel like somebody's helped you feellike somebody's helped you feel like somebody's helped you feel like somebody's helped you feel like somebody's helped you feel like somebody's helped you feel like somebody's helped you feel36:24
  557. like somebody's helped you feel like somebody's helped you feel like somebody's helped you feel like somebody's helped you feel like somebody's helped you feel like somebody's helped you feellike somebody's helped you feel like somebody's helped you feel like somebody's helped you feel like somebody's helped you feel like somebody's helped you feel like somebody's helped you feel36:24
  558. like somebody's helped you feel like somebody's helped you feel like somebody's helped you feel like somebody's helped you feel like somebody's helped you feel like You're proving in thatlike somebody's helped you feel like somebody's helped you feel like somebody's helped you feel like somebody's helped you feel like somebody's helped you feel like You're proving in that36:26
  559. simple example, that's not how the human brain works at all.simple example, that's not how the human brain works at all.36:36
  560. They think the stuff is cool, they don't think you are.They think the stuff is cool, they don't think you are.36:39
  561. Everything being a competition for resources, it's rarely saying being impressed with another people.Everything being a competition for resources, it's rarely saying being impressed with another people.36:41
  562. Not never.Not never.36:48
  563. And I think it's the same with your spouse, your partner.And I think it's the same with your spouse, your partner.36:49
  564. My wife does not care at all what kind of car I drive.My wife does not care at all what kind of car I drive.36:53
  565. She doesn't care about what new jeans I bought.She doesn't care about what new jeans I bought.36:57
  566. What she cares about is, am I a good dad?What she cares about is, am I a good dad?37:00
  567. Am I a good spouse?Am I a good spouse?37:03
  568. Am I a good friend?Am I a good friend?37:04
  569. Am I patient and understanding and helpful?Am I patient and understanding and helpful?37:05
  570. That's it.That's it.37:07
  571. And I think you can extend that analogy to anything else in your life.And I think you can extend that analogy to anything else in your life.37:07
  572. Your friends, your coworkers, your relationship with your children.Your friends, your coworkers, your relationship with your children.37:11
  573. We spend so much time saying, if only I had nicer things, bigger things, better things, then that would be better.We spend so much time saying, if only I had nicer things, bigger things, better things, then that would be better.37:14
  574. What matters, and people know intuitively that this matters, is that you are a good spouse, a good friend, a good parent.What matters, and people know intuitively that this matters, is that you are a good spouse, a good friend, a good parent.37:20
  575. If you do want strangers to be impressed with you, they're not gonna be impressed with your car.If you do want strangers to be impressed with you, they're not gonna be impressed with your car.37:26
  576. They will be impressed with how kind and caring and helpful you are to them.They will be impressed with how kind and caring and helpful you are to them.37:31
  577. Now, that's easier said than done too, because I think the overwhelming urge is, yeah, Morgan, I might believe what you're saying, but I still think this car would makeNow, that's easier said than done too, because I think the overwhelming urge is, yeah, Morgan, I might believe what you're saying, but I still think this car would make37:35
  578. me happy.me happy.37:45
  579. Like, it's such a powerful thing that we have, that it's not something that you can just get over immediately.Like, it's such a powerful thing that we have, that it's not something that you can just get over immediately.37:46
  580. And even after doing this for 20 years and writing these books, it's not something that I've been able to fully overcome.And even after doing this for 20 years and writing these books, it's not something that I've been able to fully overcome.37:52
  581. And another way to prove this point is that I guarantee you in your social circle, there is somebody that you know that has a huge house or an amazingAnd another way to prove this point is that I guarantee you in your social circle, there is somebody that you know that has a huge house or an amazing37:56
  582. car and you would not want to be near them, and they're miserable.car and you would not want to be near them, and they're miserable.38:05
  583. And so just having all that stuff that you want doesn't make you like them.And so just having all that stuff that you want doesn't make you like them.38:08
  584. And so I think intellectually we know this, but if you have bad spending habits, how do you change them, Morgan?And so I think intellectually we know this, but if you have bad spending habits, how do you change them, Morgan?38:13
  585. I think you first have to ask the question, why do you have bad spending habits?I think you first have to ask the question, why do you have bad spending habits?38:22
  586. What hole are you trying to fill?What hole are you trying to fill?38:25
  587. What has buying these things done to your happiness in the past?What has buying these things done to your happiness in the past?38:28
  588. And if the answer is nothing, which is probably the answer, trying to fill that hole first, trying to answer that question first.And if the answer is nothing, which is probably the answer, trying to fill that hole first, trying to answer that question first.38:32
  589. So I think you have to kind of start on the therapist's couch, literally or figuratively, and take a look in the mirror and being like, what am I tryingSo I think you have to kind of start on the therapist's couch, literally or figuratively, and take a look in the mirror and being like, what am I trying38:39
  590. to achieve?to achieve?38:46
  591. Who do I want to become?Who do I want to become?38:47
  592. Why do I want to be that?Why do I want to be that?38:48
  593. And why am I striving for these things?And why am I striving for these things?38:50
  594. And for a lot of people, it's kind of like a binge spending that has got them into trouble where it's a stress relief.And for a lot of people, it's kind of like a binge spending that has got them into trouble where it's a stress relief.38:51
  595. It's a relief valve.It's a relief valve.38:57
  596. And I think what the valve, I think in your head, what you probably think it is, is if I bought these things, then my problems would go away.And I think what the valve, I think in your head, what you probably think it is, is if I bought these things, then my problems would go away.38:59
  597. And the truth is that that might be true in the moment.And the truth is that that might be true in the moment.39:06
  598. For spending, it's almost never true.For spending, it's almost never true.39:08
  599. It's very rarely true that your binge spending is going to fill any kind of emotional hole that you have.It's very rarely true that your binge spending is going to fill any kind of emotional hole that you have.39:10
  600. And the other thing is that if you're buying these things particularly on credit, you have bad habits, you're getting yourself into debt.And the other thing is that if you're buying these things particularly on credit, you have bad habits, you're getting yourself into debt.39:15
  601. The new sweater that you bought might give you a day or two of happiness before it's either worn out or you don't care about it much anymore.The new sweater that you bought might give you a day or two of happiness before it's either worn out or you don't care about it much anymore.39:20
  602. But the paying it off is going to stick with you for years or months or even decades.But the paying it off is going to stick with you for years or months or even decades.39:26
  603. And so that kind of thing of controlling your future and independence, you know, every dollar of debt that you have from these poor spending habits is a piece ofAnd so that kind of thing of controlling your future and independence, you know, every dollar of debt that you have from these poor spending habits is a piece of39:31
  604. your future that somebody else owns.your future that somebody else owns.39:40
  605. It's a piece of your time that you owe to the bank, you owe to the lender.It's a piece of your time that you owe to the bank, you owe to the lender.39:42
  606. And the opposite of that is every dollar of savings that you have, the reverse of bad spending habits is a piece of your future that you own that youAnd the opposite of that is every dollar of savings that you have, the reverse of bad spending habits is a piece of your future that you own that you39:47
  607. have control over every single dollar.have control over every single dollar.39:55
  608. I've viewed this since I was 17, that every dollar that I save, even if it was literally one dollar, was one dollar of my future that I gained back.I've viewed this since I was 17, that every dollar that I save, even if it was literally one dollar, was one dollar of my future that I gained back.39:58
  609. That's always how it felt to me.That's always how it felt to me.40:06
  610. And that's always been my my goal for saving and my motivation for saving was I just want to be independent.And that's always been my my goal for saving and my motivation for saving was I just want to be independent.40:08
  611. I just want to wake up and do whatever I want.I just want to wake up and do whatever I want.40:15
  612. And I feel like my savings has bought that.And I feel like my savings has bought that.40:18
  613. It's not when I save money, it's not because I say, oh, I'm saving up to buy a new car.It's not when I save money, it's not because I say, oh, I'm saving up to buy a new car.40:21
  614. Even though there can be that and that could be great.Even though there can be that and that could be great.40:27
  615. If I save a hundred dollars, I view that as purchasing a hundred dollars of independence.If I save a hundred dollars, I view that as purchasing a hundred dollars of independence.40:29
  616. I'm spending that money.I'm spending that money.40:34
  617. It's giving me independence today.It's giving me independence today.40:35
  618. And I think that can be an antidote to bad spending habits.And I think that can be an antidote to bad spending habits.40:37
  619. A lot of people will say, why save money?A lot of people will say, why save money?40:41
  620. Like they don't really understand the purpose of saving money.Like they don't really understand the purpose of saving money.40:43
  621. Right.Right.40:45
  622. Because if you don't have a lot of money, it feels weird.Because if you don't have a lot of money, it feels weird.40:46
  623. Why would I put twenty dollars away from my paycheck?Why would I put twenty dollars away from my paycheck?40:49
  624. Because that's all I can afford to do right now.Because that's all I can afford to do right now.40:53
  625. All that you can do.All that you can do.40:55
  626. And so it feels like why even bother?And so it feels like why even bother?40:56
  627. I might as well just yolo to spend and spend all of it.I might as well just yolo to spend and spend all of it.40:57
  628. Yes.Yes.41:00
  629. I think once you shift the mentality from why save a hundred dollars to spend in the future, if I just spend a hundred dollars right now, why am II think once you shift the mentality from why save a hundred dollars to spend in the future, if I just spend a hundred dollars right now, why am I41:00
  630. putting why am I delaying this gratification if I could have it immediately?putting why am I delaying this gratification if I could have it immediately?41:08
  631. If you view it like that, then I understand the mentality of yolo, spend everything.If you view it like that, then I understand the mentality of yolo, spend everything.41:10
  632. Why even save?Why even save?41:15
  633. It doesn't matter.It doesn't matter.41:16
  634. This is going to debt.This is going to debt.41:16
  635. Who cares?Who cares?41:17
  636. Once you view it as that hundred dollars you are purchasing today, a hundred dollars of independence, a hundred dollars of peace, a hundred dollars of sleeping better at night,Once you view it as that hundred dollars you are purchasing today, a hundred dollars of independence, a hundred dollars of peace, a hundred dollars of sleeping better at night,41:17
  637. then it completely shifts the game.then it completely shifts the game.41:27
  638. And so if I save a hundred dollars, that's not delayed gratification.And so if I save a hundred dollars, that's not delayed gratification.41:29
  639. That today in this moment, today and tonight gives me a hundred dollars of happiness and more contentment.That today in this moment, today and tonight gives me a hundred dollars of happiness and more contentment.41:32
  640. It's because I feel like I'm more independent than I was before I saved that money.It's because I feel like I'm more independent than I was before I saved that money.41:39
  641. And when you get back to I think what most people want out of money.And when you get back to I think what most people want out of money.41:43
  642. Oh my God, most people think that buying the nice car is the flex.Oh my God, most people think that buying the nice car is the flex.41:46
  643. You're saying independence is the flex.You're saying independence is the flex.41:49
  644. There's a great quote from Nassim Talab, where he says, my only metric of success is how much time you have to kill.There's a great quote from Nassim Talab, where he says, my only metric of success is how much time you have to kill.41:51
  645. And now, you know, there's obviously a spectrum of that.And now, you know, there's obviously a spectrum of that.41:59
  646. But that's always been I just want independence.But that's always been I just want independence.42:03
  647. And you can have independence at a pretty low level of financial income.And you can have independence at a pretty low level of financial income.42:05
  648. And as it sounds, my grandmother in law, she had nothing and she had pure independence.And as it sounds, my grandmother in law, she had nothing and she had pure independence.42:10
  649. You can be one of the richest men in the world and have no independence, completely beholden to the opinions and the desires of somebody else.You can be one of the richest men in the world and have no independence, completely beholden to the opinions and the desires of somebody else.42:15
  650. And there are multi -billionaires who are way less independent than my grandmother in law.And there are multi -billionaires who are way less independent than my grandmother in law.42:25
  651. And that, I think, is an empowering message of your feeling of being independent is a feeling.And that, I think, is an empowering message of your feeling of being independent is a feeling.42:29
  652. It's a story that you've told yourself.It's a story that you've told yourself.42:37
  653. It's not there.It's not there.42:38
  654. There's no financial level at which like, OK, once you have this much money, then you're set free.There's no financial level at which like, OK, once you have this much money, then you're set free.42:39
  655. You can be a multi -billionaire and completely beholden to other people.You can be a multi -billionaire and completely beholden to other people.42:45
  656. You can have very little money and have pure financial independence in your head.You can have very little money and have pure financial independence in your head.42:49
  657. Let's touch on investing because you have a really great take on this.Let's touch on investing because you have a really great take on this.42:53
  658. You say that success in investing has more to do with long -term thinking and avoiding jealousy driven behavior.You say that success in investing has more to do with long -term thinking and avoiding jealousy driven behavior.42:58
  659. Why is that so powerful?Why is that so powerful?43:07
  660. All compound interest.All compound interest.43:09
  661. So compound interest is an incredible thing of just you're growing your money over time and it grows at an increasingly higher level.So compound interest is an incredible thing of just you're growing your money over time and it grows at an increasingly higher level.43:10
  662. And that's how you become.And that's how you become.43:17
  663. Can you explain that to the person listening who may not know what that is?Can you explain that to the person listening who may not know what that is?43:18
  664. Because I know a lot of people are going to share this episode to people in their lives who may have never, ever listened to anybody when it comes toBecause I know a lot of people are going to share this episode to people in their lives who may have never, ever listened to anybody when it comes to43:20
  665. the psychology of money or how to change your behaviors around money.the psychology of money or how to change your behaviors around money.43:29
  666. So what is compounding interest?So what is compounding interest?43:33
  667. So we explain it very simply.So we explain it very simply.43:34
  668. We have $100 and we earn a 10 % return on our money this year.We have $100 and we earn a 10 % return on our money this year.43:36
  669. So in one year, we have $110, 10 % return.So in one year, we have $110, 10 % return.43:40
  670. So you earn $10 in profit this year.So you earn $10 in profit this year.43:44
  671. I'm also going to earn a 10 % return next year.I'm also going to earn a 10 % return next year.43:47
  672. So now I earn 10 % on $110.So now I earn 10 % on $110.43:49
  673. So my profit that year is 11.So my profit that year is 11.43:52
  674. So my profit in year one is $10.So my profit in year one is $10.43:54
  675. My profit in year two is $11.My profit in year two is $11.43:57
  676. The profit in year three might be $12 or $13.The profit in year three might be $12 or $13.43:59
  677. It's growing every year because you are earning gains on your gains.It's growing every year because you are earning gains on your gains.44:02
  678. And if you extend that over a lifetime, over 30 or 40 or 50 years, the returns get absurd.And if you extend that over a lifetime, over 30 or 40 or 50 years, the returns get absurd.44:06
  679. And so the example that I use in my book is Warren Buffett, the grace investor of all time is worth over $100 billion.And so the example that I use in my book is Warren Buffett, the grace investor of all time is worth over $100 billion.44:13
  680. Nobody comes close to the level of investing success that he's achieved.Nobody comes close to the level of investing success that he's achieved.44:19
  681. 99 % of his net worth was accumulated after his 60th birthday.99 % of his net worth was accumulated after his 60th birthday.44:22
  682. Say that again?Say that again?44:28
  683. 99 % of his net worth was accumulated after his 60th birthday.99 % of his net worth was accumulated after his 60th birthday.44:29
  684. Now when he was 60, he was a billionaire, absurdly successful by any metric.Now when he was 60, he was a billionaire, absurdly successful by any metric.44:33
  685. But he became worth over $100 billion from age 60 to he's 94 today.But he became worth over $100 billion from age 60 to he's 94 today.44:38
  686. And so the reason that's the case is that how compounding interest works.And so the reason that's the case is that how compounding interest works.44:43
  687. It's not necessarily about what your returns are.It's not necessarily about what your returns are.44:47
  688. It's about how long can you keep it going?It's about how long can you keep it going?44:50
  689. And I think what is so empowering for ordinary people is that if you can be an average investor for an above average period of time, you can achieve absolutelyAnd I think what is so empowering for ordinary people is that if you can be an average investor for an above average period of time, you can achieve absolutely44:53
  690. incredible returns.incredible returns.45:04
  691. And so a lot of people when investing, they look, well, I can't compete against Wall Street.And so a lot of people when investing, they look, well, I can't compete against Wall Street.45:05
  692. I can't compete against all these smart hot shots and the hedge funds.I can't compete against all these smart hot shots and the hedge funds.45:09
  693. They know more things.They know more things.45:12
  694. They can earn higher returns that I can and so you become discouraged.They can earn higher returns that I can and so you become discouraged.45:13
  695. The truth is that you don't need to do anything extraordinary with your returns.The truth is that you don't need to do anything extraordinary with your returns.45:17
  696. You need to have extraordinary patience.You need to have extraordinary patience.45:21
  697. And so if you can be average for 30 years, you will end up in the top 1 % of investors.And so if you can be average for 30 years, you will end up in the top 1 % of investors.45:23
  698. My parents really personified this.My parents really personified this.45:31
  699. My parents are smart educated people, but they have no financial experience, no financial education, no financial background, no connections, no information that anybody listening to this doesn't have.My parents are smart educated people, but they have no financial experience, no financial education, no financial background, no connections, no information that anybody listening to this doesn't have.45:34
  700. But they have had extraordinary patience and self -control and discipline.But they have had extraordinary patience and self -control and discipline.45:46
  701. So they have been investing consistently every month for 40 years, never sold anything.So they have been investing consistently every month for 40 years, never sold anything.45:52
  702. Every month they invest a little bit of money, leave it alone for 40 years.Every month they invest a little bit of money, leave it alone for 40 years.45:58
  703. If you look at their returns, they would literally be in the top of professional money managers without knowing anything, without having any extra information that you and I orIf you look at their returns, they would literally be in the top of professional money managers without knowing anything, without having any extra information that you and I or46:02
  704. anyone listening can't have because they had the one skill that actually mattered, which was just patience and discipline.anyone listening can't have because they had the one skill that actually mattered, which was just patience and discipline.46:11
  705. And that's all you need.And that's all you need.46:16
  706. That's the only thing that you need.That's the only thing that you need.46:18
  707. There's some very interesting stories of professional investors who, I remember hearing the story about this professional investor who in any given year was never in the top half measuredThere's some very interesting stories of professional investors who, I remember hearing the story about this professional investor who in any given year was never in the top half measured46:21
  708. against his peers.against his peers.46:31
  709. In any given year, you look at this money manager and you're like, yeah, he did okay.In any given year, you look at this money manager and you're like, yeah, he did okay.46:32
  710. Nothing extraordinary.Nothing extraordinary.46:36
  711. But over 30 years, he was the best because that's all you need.But over 30 years, he was the best because that's all you need.46:37
  712. It's not about what you earn this year.It's not about what you earn this year.46:41
  713. It's about how long can you keep it going for is all that matters.It's about how long can you keep it going for is all that matters.46:43
  714. Having been $800 ,000 in debt and having leans on my house and clawing my way out of it, it's funny in almost every interview I get asked, how didHaving been $800 ,000 in debt and having leans on my house and clawing my way out of it, it's funny in almost every interview I get asked, how did46:48
  715. you get out of debt?you get out of debt?46:58
  716. I'm like 15 years of just clawing away at the bills and saving more than I spent.I'm like 15 years of just clawing away at the bills and saving more than I spent.46:59
  717. It was lowering expectations for my lifestyle.It was lowering expectations for my lifestyle.47:07
  718. I mean, it was grueling.I mean, it was grueling.47:10
  719. But now I notice that I'm afraid to really do anything that feels slightly risky.But now I notice that I'm afraid to really do anything that feels slightly risky.47:12
  720. And I know there's a lot of people that are worried about losing their money.And I know there's a lot of people that are worried about losing their money.47:21
  721. And so if you have a mindset where you're worried about losing the money that you have, do you still recommend that people invest in the stock market?And so if you have a mindset where you're worried about losing the money that you have, do you still recommend that people invest in the stock market?47:26
  722. Yeah, but it's always the question is how much.Yeah, but it's always the question is how much.47:35
  723. And so I have that fear.And so I have that fear.47:39
  724. I've never been buried in debt.I've never been buried in debt.47:41
  725. I've always been a diligent saver.I've always been a diligent saver.47:43
  726. But I probably have, and if you put me on the psychologist's couch, you can maybe pull a string of why this might be.But I probably have, and if you put me on the psychologist's couch, you can maybe pull a string of why this might be.47:45
  727. But I've always had kind of a worst case scenario, prepare for the worst mentality of everything that I've done in life.But I've always had kind of a worst case scenario, prepare for the worst mentality of everything that I've done in life.47:51
  728. So I think that's why I've been a big saver.So I think that's why I've been a big saver.47:57
  729. And so I have, if you looked at my entire net worth, I'm trying to, it's probably a half, maybe a little bit more than half in the stock market.And so I have, if you looked at my entire net worth, I'm trying to, it's probably a half, maybe a little bit more than half in the stock market.48:00
  730. Most financial advisors, if you looked at somebody my age or my income would say, you can have way more than that.Most financial advisors, if you looked at somebody my age or my income would say, you can have way more than that.48:09
  731. And I said, no, no, no, like this, that's fine.And I said, no, no, no, like this, that's fine.48:14
  732. That's plenty because I have this kind of worst case scenario thinking.That's plenty because I have this kind of worst case scenario thinking.48:16
  733. And that's fine.And that's fine.48:20
  734. That works.That works.48:21
  735. That works for my personality.That works for my personality.48:22
  736. My financial goal in that aspect is maximizing for how well I sleep at night.My financial goal in that aspect is maximizing for how well I sleep at night.48:23
  737. I have no desire for my tombstone to say he was in the top 5 % of investors.I have no desire for my tombstone to say he was in the top 5 % of investors.48:27
  738. He outperformed the S &P 5.He outperformed the S &P 5.48:32
  739. I couldn't care less.I couldn't care less.48:34
  740. I want to use money as a tool to help me sleep at night.I want to use money as a tool to help me sleep at night.48:35
  741. That's the metric I'm going for.That's the metric I'm going for.48:38
  742. And so during periods when the market has done very poorly, 2008, 2020 during COVID, it didn't really have that much impact on me because it was never 100 %And so during periods when the market has done very poorly, 2008, 2020 during COVID, it didn't really have that much impact on me because it was never 100 %48:40
  743. in it.in it.48:50
  744. I always had plenty to fall back onto of things.I always had plenty to fall back onto of things.48:50
  745. So I have quite a bit of cash and bonds and like boring basic savings.So I have quite a bit of cash and bonds and like boring basic savings.48:53
  746. Same.Same.48:58
  747. And look, you can overdose on that.And look, you can overdose on that.48:59
  748. You can overdo that.You can overdo that.49:02
  749. But I think the idea that most financial advisors would just say, well, look, if you want to maximize your investing returns, this is how much you should have inBut I think the idea that most financial advisors would just say, well, look, if you want to maximize your investing returns, this is how much you should have in49:03
  750. the stock market.the stock market.49:12
  751. That can be true for some people, but you really have to look in the mirror with you and maybe your spouse and your partner and say, well, what areThat can be true for some people, but you really have to look in the mirror with you and maybe your spouse and your partner and say, well, what are49:13
  752. we trying to maximize for?we trying to maximize for?49:19
  753. And I think there's no amount of investing return that can compensate for waking up at two in the morning and saying, oh, shit, am I doing this right?And I think there's no amount of investing return that can compensate for waking up at two in the morning and saying, oh, shit, am I doing this right?49:20
  754. Have I gone too far?Have I gone too far?49:30
  755. There's no amount of return, at least for me.There's no amount of return, at least for me.49:31
  756. That would be worth it for that.That would be worth it for that.49:33
  757. I would much rather just use money as a tool to be happy and look at my savings and think, I have young kids right now.I would much rather just use money as a tool to be happy and look at my savings and think, I have young kids right now.49:35
  758. When I think about my savings, I think about if something terrible happened to our family, my career, our health, whatever it might be, this savings is a cushion toWhen I think about my savings, I think about if something terrible happened to our family, my career, our health, whatever it might be, this savings is a cushion to49:42
  759. prevent hardship on my children.prevent hardship on my children.49:52
  760. Now, everyone's in a different situation, but for me at this phase of my life, that's what it is to me.Now, everyone's in a different situation, but for me at this phase of my life, that's what it is to me.49:54
  761. And so it's not about like, oh, am I maximizing investing return?And so it's not about like, oh, am I maximizing investing return?49:59
  762. It's am I using this as a tool to give myself and my kids and my wife a better life?It's am I using this as a tool to give myself and my kids and my wife a better life?50:03
  763. That's what it is for me personally.That's what it is for me personally.50:08
  764. Well, and that's what you said at the very beginning.Well, and that's what you said at the very beginning.50:09
  765. You either use your money as a tool in order to live a good life and to be content.You either use your money as a tool in order to live a good life and to be content.50:11
  766. And you've now introduced this question, what am I maximizing for?And you've now introduced this question, what am I maximizing for?50:17
  767. And or you're using it as this yardstick so that you can measure up with people externally.And or you're using it as this yardstick so that you can measure up with people externally.50:22
  768. And there's the two things.And there's the two things.50:29
  769. And there's a graveyard of stories of people, most of them are very wealthy people, who the goal of their investments was beat other people.And there's a graveyard of stories of people, most of them are very wealthy people, who the goal of their investments was beat other people.50:30
  770. Yeah.Yeah.50:38
  771. Their goal was outperform the next guy and it completely backfired on their, they were chasing a goal that had no impact on their quality of life.Their goal was outperform the next guy and it completely backfired on their, they were chasing a goal that had no impact on their quality of life.50:38
  772. And that has, that's never made much sense to me.And that has, that's never made much sense to me.50:47
  773. It's always just been like, how can I use this as a tool to be happier?It's always just been like, how can I use this as a tool to be happier?50:49
  774. And there are a lot of people I explained in psychology money, how I invest my money.And there are a lot of people I explained in psychology money, how I invest my money.50:51
  775. And I was maybe not surprised, but I think it's so interesting to me that it seems like their goal is making the spreadsheet happy.And I was maybe not surprised, but I think it's so interesting to me that it seems like their goal is making the spreadsheet happy.50:55
  776. Their goal is so that you could come up with a formula that says you're maximizing return.Their goal is so that you could come up with a formula that says you're maximizing return.51:03
  777. And my goal has always been use it as a tool to live a better life.And my goal has always been use it as a tool to live a better life.51:07
  778. What is the shorthand version?What is the shorthand version?51:12
  779. I do, I know you do write about it in your book for how you do invest your money.I do, I know you do write about it in your book for how you do invest your money.51:14
  780. So I invest in what are called index funds, which are very boring, very basic.So I invest in what are called index funds, which are very boring, very basic.51:17
  781. You basically own every stock in the universe, pick a public company.You basically own every stock in the universe, pick a public company.51:22
  782. I own it in this fund, very low cost.I own it in this fund, very low cost.51:26
  783. And I invest consistently every month, every quarter.And I invest consistently every month, every quarter.51:28
  784. And I've never sold anything in any significant amounts.And I've never sold anything in any significant amounts.51:32
  785. And I hope to do that forever.And I hope to do that forever.51:36
  786. I hope this is money that I pass along to my kids or charity or whatever it might be.I hope this is money that I pass along to my kids or charity or whatever it might be.51:38
  787. And that's it.And that's it.51:43
  788. It's as boring and basic as that.It's as boring and basic as that.51:44
  789. And if you look at my entire net worth, it's a house, cash, index funds, and chairs of a company called Markel where I'm on the board of directors.And if you look at my entire net worth, it's a house, cash, index funds, and chairs of a company called Markel where I'm on the board of directors.51:45
  790. And that's it.And that's it.51:53
  791. It's as simple and boring and basic as you can get.It's as simple and boring and basic as you can get.51:54
  792. The more complicated your investments are, the lower the odds that you can actually stick with them for 10 or 20 or 30 years.The more complicated your investments are, the lower the odds that you can actually stick with them for 10 or 20 or 30 years.51:57
  793. And getting back to compound interest, all that matters is can you stick with this?And getting back to compound interest, all that matters is can you stick with this?52:03
  794. Can you keep this going for years or decades?Can you keep this going for years or decades?52:08
  795. And I think the simpler it is, the fewer levers you have to pull in your portfolio, the higher the odds that you're going to be able to stick withAnd I think the simpler it is, the fewer levers you have to pull in your portfolio, the higher the odds that you're going to be able to stick with52:10
  796. it for a long period of time.it for a long period of time.52:17
  797. You keep saying the word patience.You keep saying the word patience.52:18
  798. And I think it's both patience with the things that you're doing, patience with yourself as your life is not meeting your expectations, patience with your emotions when you feelAnd I think it's both patience with the things that you're doing, patience with yourself as your life is not meeting your expectations, patience with your emotions when you feel52:20
  799. like maybe if you bought that new thing, those new set of golf clubs, it'd make you feel a little less depressed, patience, patience, patience.like maybe if you bought that new thing, those new set of golf clubs, it'd make you feel a little less depressed, patience, patience, patience.52:32
  800. For somebody who's never invested, they don't look at their money.For somebody who's never invested, they don't look at their money.52:40
  801. They feel intimidated by this.They feel intimidated by this.52:47
  802. What would you say to them, Morgan?What would you say to them, Morgan?52:50
  803. One of the most important things about investing in the stock market is that we know historically, you can do very well over time.One of the most important things about investing in the stock market is that we know historically, you can do very well over time.52:52
  804. You can make a lot of money in the stock market over time.You can make a lot of money in the stock market over time.52:57
  805. Like anything else in life, there is a cost of that.Like anything else in life, there is a cost of that.53:00
  806. There is a fee for doing that.There is a fee for doing that.53:03
  807. And when I say fees, I'm not talking about fees to your advisor, fees to your broker.And when I say fees, I'm not talking about fees to your advisor, fees to your broker.53:05
  808. The fee for doing well in investing is putting up with a constant never ending chain of volatility and uncertainty.The fee for doing well in investing is putting up with a constant never ending chain of volatility and uncertainty.53:08
  809. That's what you're getting paid for.That's what you're getting paid for.53:16
  810. That's the cost of admission is putting up with the fact that I am very confident that the stock market will do well over the next 20 years.That's the cost of admission is putting up with the fact that I am very confident that the stock market will do well over the next 20 years.53:18
  811. But I have no idea when that's return is going to come.But I have no idea when that's return is going to come.53:24
  812. We might get all of that return next year and then have 19 years of stagnation.We might get all of that return next year and then have 19 years of stagnation.53:27
  813. We might get 19 years of stagnation and then it all comes in year 20.We might get 19 years of stagnation and then it all comes in year 20.53:32
  814. We have no idea when it's going to come.We have no idea when it's going to come.53:36
  815. And enduring that and putting up with that is the cost of admission.And enduring that and putting up with that is the cost of admission.53:38
  816. There are other investments out there that have no volatility.There are other investments out there that have no volatility.53:42
  817. Savings account in the bank, you have no volatility, very predictable what your returns are going to be.Savings account in the bank, you have no volatility, very predictable what your returns are going to be.53:45
  818. Your returns are going to be low.Your returns are going to be low.53:50
  819. Those are the returns that you deserve.Those are the returns that you deserve.53:51
  820. And so if you're willing to put up with volatility on uncertainty and not knowing, that's the cost of admission.And so if you're willing to put up with volatility on uncertainty and not knowing, that's the cost of admission.53:53
  821. And historically, that has been a cost of admission that is worth paying.And historically, that has been a cost of admission that is worth paying.53:59
  822. That if you can put up with that over time, 10, 20 years, you can do extraordinarily well.That if you can put up with that over time, 10, 20 years, you can do extraordinarily well.54:03
  823. You know, Morgan, you make a huge distinction between being rich and wealthy.You know, Morgan, you make a huge distinction between being rich and wealthy.54:07
  824. Can you walk us through the difference and why it matters?Can you walk us through the difference and why it matters?54:12
  825. I think if you are rich, by my definition, that means that you have the money in the bank to buy the things that you want.I think if you are rich, by my definition, that means that you have the money in the bank to buy the things that you want.54:15
  826. You can make your mortgage payment, you can make your car payment, you can pay for your dinners out, whatever you want to do, that's rich.You can make your mortgage payment, you can make your car payment, you can pay for your dinners out, whatever you want to do, that's rich.54:22
  827. Wealthy is independent.Wealthy is independent.54:28
  828. It's money in the bank that you're not spending.It's money in the bank that you're not spending.54:30
  829. It is money.It is money.54:33
  830. It's things that you have not purchased.It's things that you have not purchased.54:34
  831. It's savings.It's savings.54:35
  832. It's investments that's sitting there not being spent, but it's giving you independence.It's investments that's sitting there not being spent, but it's giving you independence.54:37
  833. It's giving you financial independence and psychological independence, where you can live your life in your way without chasing what other people, what you think other people want out ofIt's giving you financial independence and psychological independence, where you can live your life in your way without chasing what other people, what you think other people want out of54:42
  834. you.you.54:53
  835. And there are some pretty astounding examples of the two sides of the spectrum.And there are some pretty astounding examples of the two sides of the spectrum.54:53
  836. I use this in the book, The Art of Spending Money.I use this in the book, The Art of Spending Money.54:57
  837. The Vanderbilt family was the richest family that the world had ever seen.The Vanderbilt family was the richest family that the world had ever seen.54:59
  838. Back in the 1800s, Cornelius Vanderbilt, if you adjusted for inflation, he had something like half a trillion dollars was his net worth.Back in the 1800s, Cornelius Vanderbilt, if you adjusted for inflation, he had something like half a trillion dollars was his net worth.55:05
  839. And some of the other very wealthy families, the Carnegie's, the Rockefellers, did a pretty good job at giving most of their money away to charity.And some of the other very wealthy families, the Carnegie's, the Rockefellers, did a pretty good job at giving most of their money away to charity.55:13
  840. The Vanderbilt's basically said, we're going to give it all to our kids and our grandkids and our great grandkids.The Vanderbilt's basically said, we're going to give it all to our kids and our grandkids and our great grandkids.55:21
  841. And their job is to live the biggest, most ostentatious life that you can possibly imagine.And their job is to live the biggest, most ostentatious life that you can possibly imagine.55:27
  842. And the biographies that came from there of those Vanderbilt heirs, which show, I think, without exception, that every single one of them was miserable.And the biographies that came from there of those Vanderbilt heirs, which show, I think, without exception, that every single one of them was miserable.55:32
  843. Every single, these are, you know, if you were a Vanderbilt heir in the early 1900s, the day that you were born, you got half a billion dollars trust fund.Every single, these are, you know, if you were a Vanderbilt heir in the early 1900s, the day that you were born, you got half a billion dollars trust fund.55:41
  844. And the only thing that was ever expected out of you in life was that you spend as big as you possibly can.And the only thing that was ever expected out of you in life was that you spend as big as you possibly can.55:50
  845. And every single one of them was miserable.And every single one of them was miserable.55:55
  846. There's a book called Fortune's Children written by one of the heirs.There's a book called Fortune's Children written by one of the heirs.55:58
  847. It was Arthur Vanderbilt.It was Arthur Vanderbilt.56:01
  848. And he talks about the history of his ancestors.And he talks about the history of his ancestors.56:02
  849. And it is one of the saddest books I've ever read because these people are people who maybe you and I and people listening would look at and say, you'reAnd it is one of the saddest books I've ever read because these people are people who maybe you and I and people listening would look at and say, you're56:06
  850. so lucky.so lucky.56:15
  851. That's, I can't believe how lucky you got.That's, I can't believe how lucky you got.56:16
  852. You just got a billion dollars the day you were born.You just got a billion dollars the day you were born.56:18
  853. And you read it and you say, like, I would not, I would never, I would never want that life because they were so, they were very rich.And you read it and you say, like, I would not, I would never, I would never want that life because they were so, they were very rich.56:20
  854. They were the richest people in the world, but they had no independence.They were the richest people in the world, but they had no independence.56:28
  855. Everything was dictated about even including who they were allowed to marry was dictated by kind of the social circle of their family.Everything was dictated about even including who they were allowed to marry was dictated by kind of the social circle of their family.56:31
  856. And to me, the most interesting part of the Vanderbilt family is that by this point today, virtually all the money is gone.And to me, the most interesting part of the Vanderbilt family is that by this point today, virtually all the money is gone.56:40
  857. There are a couple of Vanderbilt heirs that have some money, but the first Vanderbilt heir who got no inheritance, no trust fund was Anderson Cooper, the CNN post toThere are a couple of Vanderbilt heirs that have some money, but the first Vanderbilt heir who got no inheritance, no trust fund was Anderson Cooper, the CNN post to56:48
  858. most people his mother, Gloria Vanderbilt was kind of the last person to get a big trust fund.most people his mother, Gloria Vanderbilt was kind of the last person to get a big trust fund.56:58
  859. And Anderson Cooper has talked about this, that being the first Vanderbilt heir who didn't get much money was probably a good thing.And Anderson Cooper has talked about this, that being the first Vanderbilt heir who didn't get much money was probably a good thing.57:04
  860. He was the first person in his family in like 150 years who was told, you have to go figure it out for yourself.He was the first person in his family in like 150 years who was told, you have to go figure it out for yourself.57:11
  861. You have to build your own career, make your own money, figure out your own way.You have to build your own career, make your own money, figure out your own way.57:18
  862. And he's talked about this like he's probably the happiest person in his career.And he's talked about this like he's probably the happiest person in his career.57:22
  863. Not that he's had a perfect life, but he's probably one of the happiest.Not that he's had a perfect life, but he's probably one of the happiest.57:25
  864. And I think that is again, like if you look at the richest people, because the Vanderbilt's were the richest people in the world and they had no wealth byAnd I think that is again, like if you look at the richest people, because the Vanderbilt's were the richest people in the world and they had no wealth by57:28
  865. my definition.my definition.57:35
  866. They had no independence.They had no independence.57:36
  867. They had no ability to live their own life.They had no ability to live their own life.57:37
  868. I think that's the difference between rich and wealthy.I think that's the difference between rich and wealthy.57:39
  869. But all comes back to what are you actually using money for?But all comes back to what are you actually using money for?57:42
  870. And the clearer you are about the drivers for why you're doing it, it changes what and how you're doing it.And the clearer you are about the drivers for why you're doing it, it changes what and how you're doing it.57:46
  871. Yes.Yes.57:53
  872. And it's so clear in my head, like would you rather earn $70 ,000 a year and your kids admire you, you've had a great marriage, you have barbecues withAnd it's so clear in my head, like would you rather earn $70 ,000 a year and your kids admire you, you've had a great marriage, you have barbecues with57:54
  873. your friends and you sit and laugh and you're in good health.your friends and you sit and laugh and you're in good health.58:04
  874. And would you rather have that life or make a million dollars a year and you're on your fifth divorce, your kids don't talk to you anymore, you're in terribleAnd would you rather have that life or make a million dollars a year and you're on your fifth divorce, your kids don't talk to you anymore, you're in terrible58:08
  875. health, you're being sued by all of your business partners.health, you're being sued by all of your business partners.58:15
  876. It's when you frame it like that, it's the most obvious thing in the world.It's when you frame it like that, it's the most obvious thing in the world.58:18
  877. Like would you rather have a good life and less money or more money and then when the worst life, if you frame it like that, it's obvious.Like would you rather have a good life and less money or more money and then when the worst life, if you frame it like that, it's obvious.58:21
  878. But still, even if you agree with that framing, it is so normal and natural to say, okay, but I'd still rather make a million dollars a year.But still, even if you agree with that framing, it is so normal and natural to say, okay, but I'd still rather make a million dollars a year.58:27
  879. Like the pull is still always there.Like the pull is still always there.58:36
  880. Well, because you think you're going to be the exception.Well, because you think you're going to be the exception.58:38
  881. Everybody does.Everybody does.58:40
  882. Everybody does.Everybody does.58:41
  883. So if you're in your 20s and you're just getting started, you haven't been a big saver, you're just got your first job out of college, Morgan, what is yourSo if you're in your 20s and you're just getting started, you haven't been a big saver, you're just got your first job out of college, Morgan, what is your58:42
  884. advice in terms of getting good with money?advice in terms of getting good with money?58:53
  885. A really simple tool that I came to this by realizing that most people's who are making financial mistakes and have a problem with money, it's not because of theA really simple tool that I came to this by realizing that most people's who are making financial mistakes and have a problem with money, it's not because of the58:56
  886. lack of intelligence, it's ignorance.lack of intelligence, it's ignorance.59:05
  887. And for most people, they actually have no idea how much money they're making or spending.And for most people, they actually have no idea how much money they're making or spending.59:07
  888. And if you ask them, like how much money do you make per month and how much money do you spend per month?And if you ask them, like how much money do you make per month and how much money do you spend per month?59:12
  889. Overall, most people in that situation either couldn't tell you or they would give you an answer that's false.Overall, most people in that situation either couldn't tell you or they would give you an answer that's false.59:17
  890. And I think the very basic, such boring advice that goes the longest is check your bank account balance every single day.And I think the very basic, such boring advice that goes the longest is check your bank account balance every single day.59:23
  891. It takes every day, every day, every day.It takes every day, every day, every day.59:32
  892. It takes 10 seconds.It takes 10 seconds.59:34
  893. It's not that hard.It's not that hard.59:36
  894. And just to give yourself some sense of how much money is coming in and how much is going out, just be cognizant of it.And just to give yourself some sense of how much money is coming in and how much is going out, just be cognizant of it.59:36
  895. I've never, people don't do this anymore, but back in a different generation, balancing your checkbook was always a big thing.I've never, people don't do this anymore, but back in a different generation, balancing your checkbook was always a big thing.59:42
  896. Most people don't do it anymore.Most people don't do it anymore.59:49
  897. But I remember it for my entire life since I've been a teenager, I've never had any desire to never need to do that because I know my bank accountBut I remember it for my entire life since I've been a teenager, I've never had any desire to never need to do that because I know my bank account59:50
  898. balance down to the dollar every day since I've been 16 or 17.balance down to the dollar every day since I've been 16 or 17.59:57
  899. And I think just having that awareness of what's going in and what's going out, it's the most basic advice.And I think just having that awareness of what's going in and what's going out, it's the most basic advice.60:02
  900. But for people who are new and starting out, nothing goes further than that.But for people who are new and starting out, nothing goes further than that.60:07
  901. It's not a lack of intelligence.Bukan kurangnya kecerdasan.60:10
  902. It's ignorance.Itu adalah kebodohan.60:12
  903. You just have to become aware of what you're spending and how much is coming in and how much is going out.You just have to become aware of what you're spending and how much is coming in and how much is going out.60:13
  904. That's the very first thing.That's the very first thing.60:17
  905. And what's the next thing?And what's the next thing?60:18
  906. The other thing is financial independence exists on a spectrum.The other thing is financial independence exists on a spectrum.60:19
  907. It's not black and white.It's not black and white.60:23
  908. So most people would say, we talked about this earlier, why save $20?So most people would say, we talked about this earlier, why save $20?60:24
  909. That doesn't seem like it's going to make any difference whatsoever.That doesn't seem like it's going to make any difference whatsoever.60:28
  910. So I'm not even going to save.So I'm not even going to save.60:30
  911. Every dollar that you save is a piece of your future that you own.Every dollar that you save is a piece of your future that you own.60:32
  912. Every dollar that you save is a little bit marginally more comfort that you're going to have if you get laid off, if you have a medical emergency, if yourEvery dollar that you save is a little bit marginally more comfort that you're going to have if you get laid off, if you have a medical emergency, if your60:35
  913. car breaks down, every single dollar is getting you to that place.car breaks down, every single dollar is getting you to that place.60:43
  914. So if you view independence as black and white, either I'm filthy rich or there's no reason to do it, then I understand why you would say why even save.So if you view independence as black and white, either I'm filthy rich or there's no reason to do it, then I understand why you would say why even save.60:48
  915. When you view it as every dollar that I save is a piece of my future that I control.When you view it as every dollar that I save is a piece of my future that I control.60:56
  916. It's a night of sleep in the future that's going to be a little bit better.It's a night of sleep in the future that's going to be a little bit better.61:01
  917. I think the desire to save becomes even more.I think the desire to save becomes even more.61:04
  918. And you don't feel like it's idle money, like you're saving money.And you don't feel like it's idle money, like you're saving money.61:07
  919. And it's just sitting there not being used.And it's just sitting there not being used.61:10
  920. It can give you pleasure today, right now.It can give you pleasure today, right now.61:12
  921. And I think some of the best financial decisions I've ever made was what I didn't do.And I think some of the best financial decisions I've ever made was what I didn't do.61:15
  922. I almost bought a house in my early 20s that I wouldn't have been able to afford, that would have locked me down to a region of the country thatI almost bought a house in my early 20s that I wouldn't have been able to afford, that would have locked me down to a region of the country that61:20
  923. I didn't want to stay in, that would have done all kinds of things that in hindsight would have been terrible.I didn't want to stay in, that would have done all kinds of things that in hindsight would have been terrible.61:27
  924. And the freedom, the independence that I had by renting earlier in my life of getting up and going, moving to where the jobs were, I look back at thatAnd the freedom, the independence that I had by renting earlier in my life of getting up and going, moving to where the jobs were, I look back at that61:32
  925. in hindsight as being an absolutely wonderful thing.in hindsight as being an absolutely wonderful thing.61:41
  926. Well, as I listened to you, what I'm realizing, it's also a matter of expectations.Well, as I listened to you, what I'm realizing, it's also a matter of expectations.61:43
  927. If you expected to be able to afford a house in your late 20s or early 30s, then of course you're going to think you failed.If you expected to be able to afford a house in your late 20s or early 30s, then of course you're going to think you failed.61:48
  928. But if you shift your expectations and say to yourself, if I'm patient, markets go up and down, inflation goes up and down, mortgage rates go up and down.But if you shift your expectations and say to yourself, if I'm patient, markets go up and down, inflation goes up and down, mortgage rates go up and down.61:56
  929. If I am patient, I will be able to figure this out.If I am patient, I will be able to figure this out.62:06
  930. And when the timing is right and when I can afford it, I will find the right house for me.And when the timing is right and when I can afford it, I will find the right house for me.62:10
  931. And that's the way that you manage the stress that you feel right now, because it's your expectation based on what society's telling you or your parents are telling youAnd that's the way that you manage the stress that you feel right now, because it's your expectation based on what society's telling you or your parents are telling you62:15
  932. that is making you miserable around the topic.that is making you miserable around the topic.62:24
  933. One of the other big lessons of your work is the importance of mastering saving money.One of the other big lessons of your work is the importance of mastering saving money.62:26
  934. And I had always made the mistake of thinking about making more money.And I had always made the mistake of thinking about making more money.62:32
  935. I got to make more money in order to have more money.I got to make more money in order to have more money.62:37
  936. And you really switched my thinking to focus on saving.And you really switched my thinking to focus on saving.62:40
  937. Can you talk about why saving is so important versus the obsession with making more?Can you talk about why saving is so important versus the obsession with making more?62:45
  938. Well, so much is just what you need to be happy and content.Well, so much is just what you need to be happy and content.62:51
  939. And for someone, I've always felt like my level of savings since I don't need that much to be happy.And for someone, I've always felt like my level of savings since I don't need that much to be happy.62:56
  940. We live, my wife and I live a good life, but not a very materially flashy life.We live, my wife and I live a good life, but not a very materially flashy life.63:03
  941. So we don't need that much to check the boxes in our life.So we don't need that much to check the boxes in our life.63:08
  942. And so I feel like that can be a superpower for your savings.And so I feel like that can be a superpower for your savings.63:12
  943. If you need $10 ,000 to be happy, but I only need $1 ,000 to be happy, I'm getting way more out of savings than you might.If you need $10 ,000 to be happy, but I only need $1 ,000 to be happy, I'm getting way more out of savings than you might.63:16
  944. And so once you realize that gap between expectations and reality is supercharging your savings, then it has a totally different feel.And so once you realize that gap between expectations and reality is supercharging your savings, then it has a totally different feel.63:25
  945. And so this is especially true when I was younger, where saving $100 or $1 ,000, that made an extraordinary difference in my life.And so this is especially true when I was younger, where saving $100 or $1 ,000, that made an extraordinary difference in my life.63:35
  946. I think the wealthiest I've ever felt was when I had $5 ,000 in the bank.I think the wealthiest I've ever felt was when I had $5 ,000 in the bank.63:43
  947. And I remember just feeling it was such an unfathomable amount of money at that phase in my life.And I remember just feeling it was such an unfathomable amount of money at that phase in my life.63:48
  948. And I look back at it now, where that's a less meaningful amount of money to me now than it was back then.And I look back at it now, where that's a less meaningful amount of money to me now than it was back then.63:53
  949. But I look back at it now, I'm like, yeah, but I thought it was more extraordinary back then.But I look back at it now, I'm like, yeah, but I thought it was more extraordinary back then.64:00
  950. And isn't that kind of sad that made me feel so rich?And isn't that kind of sad that made me feel so rich?64:04
  951. I remember when I had $5 ,000, I was just being like, I can't even fathom how much this is.I remember when I had $5 ,000, I was just being like, I can't even fathom how much this is.64:08
  952. And now I don't get that feeling with that kind of money.And now I don't get that feeling with that kind of money.64:12
  953. And isn't that kind of sad?And isn't that kind of sad?64:15
  954. That's what happens when your expectations kind of spiral up.That's what happens when your expectations kind of spiral up.64:16
  955. So the idea that the power of your savings is completely dependent on the expectations of what you have and the lifestyle that you want to live, I think isSo the idea that the power of your savings is completely dependent on the expectations of what you have and the lifestyle that you want to live, I think is64:19
  956. a pretty powerful idea.a pretty powerful idea.64:27
  957. How do you switch the focus, though, from this obsession of making more to understanding the importance of saving?How do you switch the focus, though, from this obsession of making more to understanding the importance of saving?64:28
  958. I've always viewed it as, again, back to independence.I've always viewed it as, again, back to independence.64:37
  959. And if you are earning a high salary, but you need that money to pay your bills this year, you have no independence whatsoever.And if you are earning a high salary, but you need that money to pay your bills this year, you have no independence whatsoever.64:40
  960. But if you have lower expectations and a lower level of, I still a good life, not a completely frugal life, a good life, and your savings can cover someBut if you have lower expectations and a lower level of, I still a good life, not a completely frugal life, a good life, and your savings can cover some64:48
  961. portion of that, that's going to give you a better sense of contentment in there.portion of that, that's going to give you a better sense of contentment in there.64:56
  962. And so look, I want to earn more money.And so look, I want to earn more money.65:00
  963. I want to earn more money this year than I did last year.I want to earn more money this year than I did last year.65:02
  964. I want to earn more money next year.I want to earn more money next year.65:05
  965. I have that as well.I have that as well.65:06
  966. I think ambition is a wonderful thing.I think ambition is a wonderful thing.65:07
  967. But I also have a level of savings that would tell me that if I did not earn more money next year, even if my income collapsed next year, I'dBut I also have a level of savings that would tell me that if I did not earn more money next year, even if my income collapsed next year, I'd65:09
  968. be okay.be okay.65:17
  969. And particularly at this phase of my life with kids, nothing matters more than me to that.And particularly at this phase of my life with kids, nothing matters more than me to that.65:17
  970. If my career collapsed next year, we'd still have our house, we'd still have this level of savings that I've been saving for, for only 25 years, having the savingsIf my career collapsed next year, we'd still have our house, we'd still have this level of savings that I've been saving for, for only 25 years, having the savings65:21
  971. built up to which we're going to be okay.built up to which we're going to be okay.65:30
  972. Because income can be much more fickle than savings is, you know, most people over the course of your life, very high, very almost 100 % that at some pointBecause income can be much more fickle than savings is, you know, most people over the course of your life, very high, very almost 100 % that at some point65:33
  973. in your life, your income is going to fall to zero.in your life, your income is going to fall to zero.65:47
  974. It might be for a week, it might be for a year, might be for, you know, who knows how long it's going to last, but it will happen toIt might be for a week, it might be for a year, might be for, you know, who knows how long it's going to last, but it will happen to65:50
  975. you.you.65:54
  976. So income is much more fickle than savings.So income is much more fickle than savings.65:55
  977. And when that happens to you, and it will, maybe it already has, the savings that you've built up in the previous years is going to be the most valuableAnd when that happens to you, and it will, maybe it already has, the savings that you've built up in the previous years is going to be the most valuable65:57
  978. thing that you've ever imagined.thing that you've ever imagined.66:04
  979. Morgan, what do you recommend we do every time we get a paycheck or get paid?Morgan, apa yang Anda rekomendasikan kami lakukan setiap kali mendapat gaji?66:06
  980. I view savings as an expense, just as I would view rent or food or whatnot.Saya melihat tabungan sebagai pengeluaran, seperti sewa atau makanan.66:11
  981. Now, obviously, it is more subjective.Now, obviously, it is more subjective.66:17
  982. You don't have to save in the sense that you have to buy food.You don't have to save in the sense that you have to buy food.66:19
  983. But if, but once you view savings as a nice to have, it's, it's almost unavoidable that you're going to, you're going to avoid doing it.But if, but once you view savings as a nice to have, it's, it's almost unavoidable that you're going to, you're going to avoid doing it.66:22
  984. Once you view it as I don't need to do this, you're going to view it as I shouldn't do it then.Once you view it as I don't need to do this, you're going to view it as I shouldn't do it then.66:31
  985. So how do I think about it?So how do I think about it?66:36
  986. If I think about it as an expense?If I think about it as an expense?66:37
  987. I think about savings as the most valuable portion of my, of my financial life.I think about savings as the most valuable portion of my, of my financial life.66:38
  988. I think the idea that life is more fragile than we want to admit.I think the idea that life is more fragile than we want to admit.66:45
  989. Careers are more fragile than we want to admit.Careers are more fragile than we want to admit.66:50
  990. The economy and geopolitics are more fragile than we want to admit is why you should save.The economy and geopolitics are more fragile than we want to admit is why you should save.66:52
  991. If we all lived in a world where we knew exactly how, what our income and expenses would be in the future, this would all be very easy, but weIf we all lived in a world where we knew exactly how, what our income and expenses would be in the future, this would all be very easy, but we66:57
  992. don't.don't.67:05
  993. It's a constant chain of unknowns and surprises in your personal life and throughout the broader country, the broader world.It's a constant chain of unknowns and surprises in your personal life and throughout the broader country, the broader world.67:05
  994. And that's why savings is mandatory.And that's why savings is mandatory.67:12
  995. And I just like, I think everyone has a desire, it has an obligation to manage their health.And I just like, I think everyone has a desire, it has an obligation to manage their health.67:14
  996. You have to manage your health.You have to manage your health.67:20
  997. You can't just put it off.You can't just put it off.67:22
  998. It's going to affect you whether you like it or not.It's going to affect you whether you like it or not.67:23
  999. I think money falls in that bucket or two as well.I think money falls in that bucket or two as well.67:25
  1000. Even if you don't have any desire to learn about money or finances, you have an obligation to learn about it and to respect it because it's going to impactEven if you don't have any desire to learn about money or finances, you have an obligation to learn about it and to respect it because it's going to impact67:27
  1001. your life whether you like it or not.your life whether you like it or not.67:34
  1002. Here's one way that I have started treating savings like an expense.Here's one way that I have started treating savings like an expense.67:36
  1003. Use the 10 % rule.Use the 10 % rule.67:41
  1004. No matter what you're getting paid, save 10%.No matter what you're getting paid, save 10%.67:43
  1005. So if you're working a restaurant shift and you get 50 bucks in tips, save $5.So if you're working a restaurant shift and you get 50 bucks in tips, save $5.67:46
  1006. That's the 10 % rule.That's the 10 % rule.67:51
  1007. If you watch somebody's dogs this weekend and somebody's paying you $100 to watch the dogs over the weekend, save $10.If you watch somebody's dogs this weekend and somebody's paying you $100 to watch the dogs over the weekend, save $10.67:53
  1008. That's the 10 % rule.That's the 10 % rule.68:00
  1009. And that's how you can make savings a habit, no matter how little or how much you make.And that's how you can make savings a habit, no matter how little or how much you make.68:01
  1010. Anything is exponentially better than nothing.Anything is exponentially better than nothing.68:06
  1011. And I remember when I was younger, when I was a teenager, saving $5, saving 10.And I remember when I was younger, when I was a teenager, saving $5, saving 10.68:10
  1012. I remember transferring $15 from my checking account to my savings account.I remember transferring $15 from my checking account to my savings account.68:17
  1013. And that might seem completely worthless to people, but it made sense to me back then of, like, that's a meal in my future that I have now that IAnd that might seem completely worthless to people, but it made sense to me back then of, like, that's a meal in my future that I have now that I68:21
  1014. didn't have before.didn't have before.68:31
  1015. It's like anything is better than nothing is the most important rule of thumb.It's like anything is better than nothing is the most important rule of thumb.68:32
  1016. Is there a simple and effective way to make saving money a habit?Is there a simple and effective way to make saving money a habit?68:37
  1017. Anytime in finance that you can automate it as well.Anytime in finance that you can automate it as well.68:43
  1018. So automating your bank and say every paycheck, you're going to move $50 to savings, whatever it might be, and making it automatic.Otomatisasi bank Anda untuk memindahkan uang ke tabungan setiap gaji.68:46
  1019. The more that you can take behavior out of the system, because we're all flawed, we're all emotional, we're all biased, we've all got social pressures, I do, you do,The more that you can take behavior out of the system, because we're all flawed, we're all emotional, we're all biased, we've all got social pressures, I do, you do,68:53
  1020. everybody does.everybody does.69:02
  1021. The more that you can take a motion out and put automation in, the better you're going to do over time.The more that you can take a motion out and put automation in, the better you're going to do over time.69:03
  1022. And for the person who's still thinking, I mean, what's the point?Untuk orang yang masih bertanya, apa gunanya?69:08
  1023. I can barely pay my bills.Saya hampir tidak dapat membayar tagihan saya.69:11
  1024. What do you want them to know?Apa yang ingin Anda mereka ketahui?69:14
  1025. The first thing I want you to know is I feel you, I empathize with you, I don't judge you.The first thing I want you to know is I feel you, I empathize with you, I don't judge you.69:16
  1026. I'm sure you're a good person and you should not be embarrassed about it because there are tens or hundreds of millions of other people in your shoes.I'm sure you're a good person and you should not be embarrassed about it because there are tens or hundreds of millions of other people in your shoes.69:20
  1027. So knowing that you're not alone, I think is an empowering thing for most people because a lot of people look at their lack of savings, look at their poorSo knowing that you're not alone, I think is an empowering thing for most people because a lot of people look at their lack of savings, look at their poor69:27
  1028. financial skills, and they feel guilt, shame, and embarrassment, and you shouldn't.financial skills, and they feel guilt, shame, and embarrassment, and you shouldn't.69:35
  1029. This is a very, very common thing.This is a very, very common thing.69:41
  1030. It doesn't mean you're a bad person.It doesn't mean you're a bad person.69:43
  1031. But the second thing you should know is that it is in your control.But the second thing you should know is that it is in your control.69:44
  1032. I use this in the psychology of money.I use this in the psychology of money.69:47
  1033. It's an astounding story.It's an astounding story.69:49
  1034. This guy named Ronald Reed.This guy named Ronald Reed.69:50
  1035. Ronald Reed came from the most humble, if not impoverished background that you can imagine.Ronald Reed came from the most humble, if not impoverished background that you can imagine.69:52
  1036. And even as an adult, he spent his entire career as a janitor and a gas station attendant.And even as an adult, he spent his entire career as a janitor and a gas station attendant.69:57
  1037. And when he died, he left millions of dollars to charity.And when he died, he left millions of dollars to charity.70:02
  1038. And everyone was like, where did the janitor, millions of dollars, like what in the world happened here?And everyone was like, where did the janitor, millions of dollars, like what in the world happened here?70:06
  1039. And the answer was, he saved what little he could, $10 here, $20 there, maybe $100 here, he invested in the stock market, he left it alone for like 70And the answer was, he saved what little he could, $10 here, $20 there, maybe $100 here, he invested in the stock market, he left it alone for like 7070:10
  1040. years.years.70:19
  1041. And that's it.And that's it.70:20
  1042. That's the whole story.That's the whole story.70:21
  1043. And that's all you need.And that's all you need.70:22
  1044. If you have the right behavior, if you have the right mindset, you don't need much else to even achieve extraordinary returns over time.If you have the right behavior, if you have the right mindset, you don't need much else to even achieve extraordinary returns over time.70:24
  1045. You know, one of the big lessons from your work for me is also this idea that enough is better than more.You know, one of the big lessons from your work for me is also this idea that enough is better than more.70:31
  1046. And I'm reading from your blockbuster bestseller, The Art of Spending Money.And I'm reading from your blockbuster bestseller, The Art of Spending Money.70:38
  1047. This is page 36.This is page 36.70:44
  1048. Desiring less can have the same impact on your well -being as gaining more money.Desiring less can have the same impact on your well -being as gaining more money.70:46
  1049. And desiring less does not mean giving up.And desiring less does not mean giving up.70:52
  1050. It doesn't mean you don't know how to spend money and have a good time.It doesn't mean you don't know how to spend money and have a good time.70:55
  1051. I think it's quite the opposite.I think it's quite the opposite.70:59
  1052. To be content with what you have is the deepest way to enjoy the house you've purchased, the clothes you wear, and the vacations you take.To be content with what you have is the deepest way to enjoy the house you've purchased, the clothes you wear, and the vacations you take.71:01
  1053. Talk to us about that.Talk to us about that.71:12
  1054. Having enough does not mean you have no aspirations for more.Having enough does not mean you have no aspirations for more.71:14
  1055. I want to work very hard this year and earn as much money as I can.I want to work very hard this year and earn as much money as I can.71:17
  1056. I want to do that next year and the year after that.I want to do that next year and the year after that.71:21
  1057. But with as much emphasis, with as much strategy and will, I want to think about my expectations and keep my expectations in check.But with as much emphasis, with as much strategy and will, I want to think about my expectations and keep my expectations in check.71:23
  1058. And when you realize that wealth is what you have versus what you want, and the wider that gap is, the worse you're going to feel, the narrower that gapAnd when you realize that wealth is what you have versus what you want, and the wider that gap is, the worse you're going to feel, the narrower that gap71:32
  1059. is, the better you're going to feel.is, the better you're going to feel.71:41
  1060. You can mix aspirations for wanting more with contentment, with what you have, and appreciation for what you have as well.You can mix aspirations for wanting more with contentment, with what you have, and appreciation for what you have as well.71:42
  1061. How do you do that?How do you do that?71:50
  1062. You have to go out of your way to think about it all the time because it's not normal and natural.You have to go out of your way to think about it all the time because it's not normal and natural.71:50
  1063. What is normal and natural in everyone's knee -jerk reaction is, I want more, and once I have more, I'm going to be happier about it.What is normal and natural in everyone's knee -jerk reaction is, I want more, and once I have more, I'm going to be happier about it.71:55
  1064. The idea of being gracious and having gratitude for the world that we live in, for what we have rather than what we don't have, for me, it takes effortThe idea of being gracious and having gratitude for the world that we live in, for what we have rather than what we don't have, for me, it takes effort72:01
  1065. to do that.to do that.72:10
  1066. Every therapist, every psychologist would tell you how powerful gratitude is.Every therapist, every psychologist would tell you how powerful gratitude is.72:11
  1067. It sounds kind of mushy and wishy -washy.It sounds kind of mushy and wishy -washy.72:16
  1068. How can that possibly be a thing?How can that possibly be a thing?72:19
  1069. Nothing in psychology, I think, is more powerful than keeping your expectations in check and being gracious for what you already have.Nothing in psychology, I think, is more powerful than keeping your expectations in check and being gracious for what you already have.72:21
  1070. There's a great quote from Stephen Hawking, the great scientist who, of course, had ALS and had absolutely no control over his body.There's a great quote from Stephen Hawking, the great scientist who, of course, had ALS and had absolutely no control over his body.72:27
  1071. He could not even speak.He could not even speak.72:35
  1072. He was in a wheelchair for almost his entire adult life.He was in a wheelchair for almost his entire adult life.72:36
  1073. He gave this interview with The New York Times several years before he died.He gave this interview with The New York Times several years before he died.72:39
  1074. In the interview, he was talking about how unbelievably happy he was and how grateful he was to be able to do this research and how great his life was.In the interview, he was talking about how unbelievably happy he was and how grateful he was to be able to do this research and how great his life was.72:43
  1075. If there's any of us who have the right to complain about life, it's somebody like Stephen Hawking.If there's any of us who have the right to complain about life, it's somebody like Stephen Hawking.72:51
  1076. If there's anyone who has the right to wake up and say, I was dealt an unfair hand in life and I'm so jealous of you and me, it's him.If there's anyone who has the right to wake up and say, I was dealt an unfair hand in life and I'm so jealous of you and me, it's him.72:56
  1077. He wasn't.He wasn't.73:04
  1078. He was so happy.He was so happy.73:05
  1079. The New York Times asked him, they said, what's your secret to happiness?The New York Times asked him, they said, what's your secret to happiness?73:07
  1080. He said, my expectations were reduced to zero when I was 21.He said, my expectations were reduced to zero when I was 21.73:10
  1081. That's when he got his disease.That's when he got his disease.73:14
  1082. He said, everything else since then has been a bonus.He said, everything else since then has been a bonus.73:16
  1083. It just made him, in that dealing with that tragedy, made it much easier for him to exercise gratitude for what he did have.It just made him, in that dealing with that tragedy, made it much easier for him to exercise gratitude for what he did have.73:19
  1084. Now, obviously, I hope to not be in that situation.Now, obviously, I hope to not be in that situation.73:28
  1085. I hope you not.I hope you not.73:31
  1086. I hope nobody is in that situation, but it's unavoidably true that when you experience that trauma, whatever the trauma might be, it can be losing a job, it canI hope nobody is in that situation, but it's unavoidably true that when you experience that trauma, whatever the trauma might be, it can be losing a job, it can73:32
  1087. be divorced, whatever it is, that it can push you closer towards appreciating what you do have.be divorced, whatever it is, that it can push you closer towards appreciating what you do have.73:40
  1088. How do you take that quote, everything was reduced to zero, so anything else that happened became a bonus and use that philosophy to change your mindset about money?How do you take that quote, everything was reduced to zero, so anything else that happened became a bonus and use that philosophy to change your mindset about money?73:46
  1089. For somebody, because there was so much that you just shared that I think is super important, and I want the person listening who maybe has no savings, who's livingFor somebody, because there was so much that you just shared that I think is super important, and I want the person listening who maybe has no savings, who's living73:58
  1090. paycheck to paycheck, to be able to take everything that you've shared with us and really use these two tools, because what you're saying is, whether it's constantly comparing yourselfpaycheck to paycheck, to be able to take everything that you've shared with us and really use these two tools, because what you're saying is, whether it's constantly comparing yourself74:07
  1091. to other people, or having outsized expectations for where you are, or the power of being grateful and just stopping for a minute, that you are where you are, andto other people, or having outsized expectations for where you are, or the power of being grateful and just stopping for a minute, that you are where you are, and74:18
  1092. that you can change your behaviors based on everything that you've shared with us today, that that's a foothold to be able to work with.that you can change your behaviors based on everything that you've shared with us today, that that's a foothold to be able to work with.74:30
  1093. How do we apply this to flip our mindset right away?How do we apply this to flip our mindset right away?74:40
  1094. I'm going to read the story many years ago about a family, husband, wife, and two or three kids, and their house burned down, burned completely to the ground, theyI'm going to read the story many years ago about a family, husband, wife, and two or three kids, and their house burned down, burned completely to the ground, they74:43
  1095. lost everything, the house that they had grown up in and imagine their future being in, and when their house burned down, everyone is distraught and in tears, we lostlost everything, the house that they had grown up in and imagine their future being in, and when their house burned down, everyone is distraught and in tears, we lost74:50
  1096. everything, and the mom gathers everyone together and says, guys, everything that we need to be happy is right here, the five of us, this is all that any ofeverything, and the mom gathers everyone together and says, guys, everything that we need to be happy is right here, the five of us, this is all that any of74:59
  1097. us ever need to be happy, it's right here, we have each other, we've lost everything material, but none of that mattered, everything we have is right here, and Ius ever need to be happy, it's right here, we have each other, we've lost everything material, but none of that mattered, everything we have is right here, and I75:07
  1098. think there is some version of that in everybody's life, regardless of what your family situation is, that you have all the tools that you need right now to bethink there is some version of that in everybody's life, regardless of what your family situation is, that you have all the tools that you need right now to be75:15
  1099. as happy as you are capable of becoming, it's not to discount your problems, it's just that everything is the gap between expectations and reality, and you have those toolsas happy as you are capable of becoming, it's not to discount your problems, it's just that everything is the gap between expectations and reality, and you have those tools75:23
  1100. right now, and I think if you go out of your way to not compare yourself to what you don't have, but to appreciate what you do have at anyright now, and I think if you go out of your way to not compare yourself to what you don't have, but to appreciate what you do have at any75:32
  1101. level of life, I think you get a little bit closer to that feeling of what you're trying to get to, which is contentment, and rather than waking up andlevel of life, I think you get a little bit closer to that feeling of what you're trying to get to, which is contentment, and rather than waking up and75:43
  1102. saying, what don't I have, and what hole is that going to fill, you're waking up and being like, look, I'm pretty grateful for the control that I have oversaying, what don't I have, and what hole is that going to fill, you're waking up and being like, look, I'm pretty grateful for the control that I have over75:50
  1103. my emotions, I'm grateful for the hope that I have in the future, I'm grateful that I can control those thoughts without them being dictated by society and move aheadmy emotions, I'm grateful for the hope that I have in the future, I'm grateful that I can control those thoughts without them being dictated by society and move ahead75:56
  1104. from there.from there.76:04
  1105. I love it, it's also a way to double down on what you are capable of doing once you get out of your own way.I love it, it's also a way to double down on what you are capable of doing once you get out of your own way.76:05
  1106. Right.Right.76:11
  1107. Maureen, if the person who's listening wants to change the story they tell themselves about money, what is the story that you would say, this is what you should sayMaureen, if the person who's listening wants to change the story they tell themselves about money, what is the story that you would say, this is what you should say76:11
  1108. to yourself from this point forward?to yourself from this point forward?76:20
  1109. Money can make you happier.Money can make you happier.76:22
  1110. Having more money, spending more money can make you happier, just not in the way that you probably think and not as much as you probably think, that you canHaving more money, spending more money can make you happier, just not in the way that you probably think and not as much as you probably think, that you can76:24
  1111. use it as a tool to live a better life.use it as a tool to live a better life.76:32
  1112. And that is a great thing.And that is a great thing.76:34
  1113. It can also be much more commonly a yardstick of status to measure yourself against others by.It can also be much more commonly a yardstick of status to measure yourself against others by.76:36
  1114. We've repeated that multiple times because I think it's the most important thing today in this era about money, is that because it's so easy to measure, it's so easyWe've repeated that multiple times because I think it's the most important thing today in this era about money, is that because it's so easy to measure, it's so easy76:42
  1115. to quantify.to quantify.76:50
  1116. And our society has made it so that that is the level of success, that your net worth is equal to your self -worth.And our society has made it so that that is the level of success, that your net worth is equal to your self -worth.76:51
  1117. And it's obviously a broken and damaging story.And it's obviously a broken and damaging story.76:57
  1118. And once you exercise controlling your expectations, controlling your emotions, being, having gratitude for what you do have, I think that's the ultimate, that's the ultimate wealth for me.And once you exercise controlling your expectations, controlling your emotions, being, having gratitude for what you do have, I think that's the ultimate, that's the ultimate wealth for me.77:00
  1119. It's not necessarily about what your net worth is.It's not necessarily about what your net worth is.77:11
  1120. It's your ability to control what you think and be grateful for what you do have.It's your ability to control what you think and be grateful for what you do have.77:14
  1121. If the person who's spent this time together with us takes one action today from everything that you've shared, what do you think the most important thing to do comingIf the person who's spent this time together with us takes one action today from everything that you've shared, what do you think the most important thing to do coming77:19
  1122. out of this conversation?out of this conversation?77:29
  1123. Realize that other people are not thinking about you as much as you are.Realize that other people are not thinking about you as much as you are.77:31
  1124. That you and your goals are often attached to wanting to impress other people, but they're not paying attention because they are busy worrying about themselves.That you and your goals are often attached to wanting to impress other people, but they're not paying attention because they are busy worrying about themselves.77:35
  1125. That's the first step to controlling your expectations.That's the first step to controlling your expectations.77:44
  1126. Once you can control your expectations, you get much closer to what I think the ultimate goal is, which is being content with your money.Once you can control your expectations, you get much closer to what I think the ultimate goal is, which is being content with your money.77:47
  1127. Well, the most important thing for me right now is to thank you.Well, the most important thing for me right now is to thank you.77:53
  1128. You and your work have made a huge difference in my life.You and your work have made a huge difference in my life.77:58
  1129. And so thank you, thank you, thank you for what you do.And so thank you, thank you, thank you for what you do.78:02
  1130. And thank you for being here with us today.And thank you for being here with us today.78:04
  1131. Thank you, Mel.Thank you, Mel.78:06
  1132. This has been fun.This has been fun.78:06
  1133. Thank you for having me.Thank you for having me.78:07
  1134. You're welcome.You're welcome.78:08
  1135. And I also want to thank you.And I also want to thank you.78:08
  1136. Thank you for making the time to listen to something that is going to improve your financial life.Thank you for making the time to listen to something that is going to improve your financial life.78:10
  1137. He talked a lot about independence and what I heard in that was freedom.He talked a lot about independence and what I heard in that was freedom.78:16
  1138. And when you apply the simple things that he told you to do, I promise you you're not only going to gain more independence, you are going to feel freer.And when you apply the simple things that he told you to do, I promise you you're not only going to gain more independence, you are going to feel freer.78:21
  1139. And one more thing, in case no one else tells you this, as your friend, I wanted to be sure to tell you that I love you and I believeAnd one more thing, in case no one else tells you this, as your friend, I wanted to be sure to tell you that I love you and I believe78:30
  1140. in you and I believe in your ability to create a better life.in you and I believe in your ability to create a better life.78:36
  1141. There's no doubt in my mind if you and I apply everything that Morgan taught us today, we will create and we will live a better life.There's no doubt in my mind if you and I apply everything that Morgan taught us today, we will create and we will live a better life.78:40
  1142. Alrighty, I will be waiting for you in the very next episode.Alrighty, I will be waiting for you in the very next episode.78:48
  1143. I'll welcome you in the moment you hit play.I'll welcome you in the moment you hit play.78:52
  1144. I'll see you there.I'll see you there.78:54
  1145. And thank you for watching all the way to the end.And thank you for watching all the way to the end.78:55
  1146. I love being here with you on YouTube.I love being here with you on YouTube.78:58
  1147. And I know you're thinking, okay, Mel, tell me what I should watch next.And I know you're thinking, okay, Mel, tell me what I should watch next.79:00
  1148. But first I got to tell you something.But first I got to tell you something.79:03
  1149. Hit subscribe.Tekan berlangganan.79:04
  1150. Got it.Got it.79:05
  1151. Good.Good.79:06
  1152. Thank you for supporting me.Thank you for supporting me.79:06
  1153. Thank you for supporting the team.Thank you for supporting the team.79:07
  1154. Now let me recommend the next video she watched.Now let me recommend the next video she watched.79:09
  1155. You're going to love this one.You're going to love this one.79:11
  1156. And I will welcome you in the moment you hit play.And I will welcome you in the moment you hit play.79:12
  1157. I'll see you there.I'll see you there.79:15

Terukur di klip ini

Kecepatan
218 kata per menit — lebih cepat dari 76% katalog
Tingkat CEFR
B1
Bentuk singkat di sini
gonna ×12, wanna ×4, kinda
Kata yang perlu diketahui
subscribed, yolo, quantify, biographies, externally, stoplight
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