The Savings Expert: “Do Not Buy A House!” Do THIS Instead! - Morgan Housel

If you're buying a house because you (beep) , d- don't do it. Run for your life.

Mr. Morgan Housel. He's the author of The Psychology of Money, one of the best-selling business books of this decade.

He can help anyone build wealth and change their life. The world is split between people who don't know how to start making money and people who don't know when to stop making money. And if you are stuck in a low-income job, you feel like you don't have the opportunity to generate wealth, but once you realize that opportunities are available for everybody, you can choose where you wanna live, what job you want, when you retire, because you can be rich.

Prove it.

People like Ronald Read, and he was a janitor.

What does it take to amass Mr. Read's $8 million fortune?

He has a fascinating story of somebody who became rich despite not having the skills that you normally associated with wealthy people. Then there's Warren Buffett, who's worth $100 billion, but the real secret to their success? Investing. My parents are a great example of this. We were very poor, no financial background, and they have, like, minimal financial interest, but now they'd probably be in the top 3% of professional investors. If you wanna do well with money, you don't need to be a genius. If you have endurance and you're investing, you're gonna be filthy rich. But when most people say, "I wanna be a millionaire," what they actually mean is, "I wanna spend a million dollars. I want some nice clothes, a bigger house, the nicer car." Ask yourself, what is your relationship with money? If your expectations rise faster than your income, you're never gonna be happy with your money. That's the problem.

So if I have 100 pounds, what's the first thing that I should do?

I keep it as painfully simple as I can. So...

Ladies and gentlemen, you're about to meet the man whose book changed my entire life as it relates to money and finance. About four or five years ago, my brother, who's a investment banker, said, "Steve, there's one book I need you to read about wealth, investing, and money, and finance," and he passed me a book called The Psychology of Money. That book changed my fortunes. It is the reason I've been a successful investor, and it's the reason I've been able to hold onto my wealth and build it. It's this man, and that's the reason why you need to stay tuned and listen to this episode. (upbeat music) Morgan, you wrote what I would consider to be the greatest book on money and finance ever written. I say that because I remember when I came into money when I was, uh, 25, 20, no, 27, 27, 28 years old, and my brother turned to me and said, "There's one thing I ask of you." He said, "You have to read this book called The Psychology of Money. It will stop you losing all of the money you've just earned from your career." And it changed my life. I've talked about it for years and years ever since, and that's why I was so keen to have this conversation with you, because I really believe if people choose to listen to this conversation, it stands the chance of changing those two. So let's begin. Why? Of all the things that you could do with your life, Morgan, why are you writing books about the subject matter that you explore? What is the reason?