The Psychology of Money

Timeless lessons on wealth, greed and happiness

By Morgan Housel

Lesson #3 - Never enough

When rich people do crazy things.

“There is no reason to risk what you have and need for what you don’t have don’t need.”

Things to remember:

1. The hardest financial skill is getting the goalpost to stop moving.
2. Social comparison is the problem here.
3. “Enough” is not too little.
4. There are many things never worth risking, no matter the potential gain.

• Reputation is invaluable
• Freedom and independence are invaluable
• Family and friends are invaluable
• Being loved by those who you want to love you is invaluable
• Happiness is invaluable

“And you best shot at keeping these things is knowing when it’s time to stop taking risks that might harm them. Knowing when you have enough.”