Understand & Apply the Psychology of Money to Gain Greater Happiness | Morgan Housel

Listen to this episode from Huberman Lab on Spotify. In this episode, my guest is Morgan Housel, an expert in private wealth generation and management and author of the bestselling book The Psychology of Money. We discuss how desiring, pursuing, saving, and spending money impact our psychology and perception of wealth. We explore why people tend to either overspend or oversave and examine the most common mistakes made in the pursuit of financial freedom. Additionally, we discuss how to best use money — and one’s relationship with it — as a tool to create psychological security, freedom, and a deeper sense of life purpose.We also delve into the impact of purchases, social media, and wealth signaling on our internal reward circuits, the dangers of using money as a gauge of career progress or self-worth, and the healthiest psychological stances to adopt while building wealth at any level. By the end of the episode, listeners will have gained numerous practical tools for making smarter financial decisions and should have a clearer understanding of the role money plays in their psychology, happiness, and life.Access the full show notes for this episode at hubermanlab.com.Pre-order Andrew's new book, Protocols: protocolsbook.comThank you to our sponsorsAG1: https://drinkag1.com/hubermanWealthfront**: https://wealthfront.com/hubermanBetterHelp: https://betterhelp.com/hubermanROKA: https://roka.com/hubermanFunction: https://functionhealth.com/huberman**This experience may not be representative of the experience of other clients of Wealthfront, and there is no guarantee that all clients will have similar experiences. Cash Account is offered by Wealthfront Brokerage LLC, Member Finra/SIPC. Promo terms and FDIC coverage conditions apply. Same-day withdrawal or instant payment transfers may be limited by destination institutions, daily transaction caps, and by participating entities such as Wells Fargo, the RTP® Network, and FedNow® Service. New Cash Account deposits are subject to a 2-4 day holding period before becoming available for transfer.Timestamps00:00:00 Morgan Housel00:02:13 Sponsors: Wealthfront & BetterHelp00:05:11 Spending Habits & Cynicism00:08:44 Tool: Money & Future Regrets00:16:07 Money Management Extremes; Credit & Hope00:23:17 Money as a Tool, Happiness, Independence & Purpose00:27:30 Sponsors: AG1 & ROKA00:30:11 Unstructured Time; Independence, Identify & Money; Addiction00:39:04 Longevity, Health & Money00:47:42 Ambition, Social Media, Fame & Social Debt00:53:37 Sponsor: Function00:55:24 Resume Virtues vs. Eulogy Virtues00:57:52 Compound Interest, Math vs. Behavior01:01:42 Dopamine & Time, Marshmallow Test & Distraction01:09:58 Motivation, Pleasure; Relationships01:14:38 Freedom, Tool: Savings & Independence01:19:06 Peak-End Rule, Autonomy & Independence; Elder vs. Elderly01:24:07 Familial Wealth & Identity; Entrepreneurs01:31:53 Life Purpose; Dogs; Social & Historical Comparison01:39:58 Social Comparison & Geography, Angst01:46:07 Carrot vs. Stick, Identity, Tool: Verb States & Energy01:56:43 Envy & Spending Money; Wealth & Birth Rates02:01:27 Tools: Parent Modeling; Resentment, Individual Goals02:07:15 Purpose, Happiness & Money02:13:05 Zero-Cost Support, YouTube, Spotify & Apple Follow & Reviews, Sponsors, YouTube Feedback, Protocols Book, Social Media, Neural Network NewsletterDisclaimer & Disclosures Learn more about your ad choices. Visit megaphone.fm/adchoices