12 great quotes about money and personal finances Featured
Photo by Morgan Housel on Unsplash
One of the foremost writers in the personal finance space today is Morgan Housel, author of the bestselling book The Psychology of Money and many essays under The Collaborative Fund blogs. He has also contributed widely to The New York Times and The Wall Street Journal. We like his writing because his advice is usually simple and practical and applies to us all!
To give you a sense of the best of his thinking, we’ve pulled together 12 great Morgan Housel quotes about money, each followed by a short explainer. We hope you enjoy them.
- “Having no FOMO might be the most important investing skill.”
My personal favourite. Don’t focus on what others are doing when investing. Instead build a financial plan and an investment strategy that is right for you, and then stick to it.
- “If your expectations grow faster than your income you’ll never be happy with your money no matter how much you accumulate.”
As your income grows through salary increases, promotions or career advancements, manage your own expectations, particularly around lifestyle spending. Don’t let these get ahead of higher income, or you’ve only trouble and disappointment ahead.
- “For many people the process of becoming wealthier feels better than having wealth.”
Similar to sport where the training, sweat and effort that goes into winning gives more satisfaction than the winning itself, the satisfaction of wealth is in the effort of building it, not in having it.
- “There is an optimal net worth for most people, after which not only does happiness stop increasing but more money becomes a social and psychological liability. The number is different for everyone, but is probably lower than most people think.”
This is really insightful… financial freedom comes when you have enough money to live the life you want, not some meaningless number. Having significantly more than that often brings a new set of headaches.
- “Doing well with money has a little to do with how smart you are and a lot to do with how you behave.”
Financial success isn’t about IQ, it’s about habits, discipline, and consistency. Smart people can make foolish money choices if they let emotions drive decisions. Over time, good behaviour beats brilliance.
- “Wealth is what you don’t see.”
True wealth isn’t the flashy car or big house. Instead it’s the investments, savings, and financial freedom you can’t see. Many people look rich but aren’t; genuine wealth is often invisible.
- “The hardest financial skill is getting the goalpost to stop moving.”
As income rises, so do expectations. This is back to the theme that real satisfaction comes from defining “enough”, otherwise you’ll forever chase the next upgrade in your life. A financial plan helps you focus on purpose, not just progress.
- “Money’s greatest intrinsic value, and this can’t be overstated, is its ability to give you control over your time.”
Money buys options: time with family, flexibility, independence. That’s the real return on wealth, not luxury but freedom. A good plan aligns money with your life priorities.
- “Saving money is the gap between your ego and your income.”
If you can live comfortably below your means, you create space for saving and investing. Managing lifestyle inflation is one of the simplest but most powerful ways to build wealth.
- “Compounding only works if you can give an asset years and years to grow. It’s like planting oak trees—you can’t force them to grow quickly.”
This is picking up on a similar quote from the 95 year old investment guru, Warren Buffett. Patience is the secret weapon of successful investors. The longer you stay invested, the more compounding does the heavy lifting. Time in the market beats timing the market.
- “Every financial plan is wrong, but having one puts you ahead of most people.”
The future is uncertain, your financial plan will always change. But having a roadmap keeps you grounded and adaptable. The process of planning is often more valuable than the plan itself.
- “The most important part of every plan is planning on your plan not going according to plan.”
Markets, life events, and goals shift. Building flexibility and resilience into your financial plan ensures you can adapt rather than react.
We hope there is a quote or two in there that really resonates with you, and that will help you become a wiser and better investor.
Photo by Morgan Housel on Unsplash