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The Morgan Housel Podcast

A Few Laws of Getting Rich

The Morgan Housel Podcast

Morgan Housel

Business

4.91.1K Ratings

🗓️ 12 October 2023

⏱️ 18 minutes

🧾️ Download transcript

Summary

Measuring wealth is easy. You just count it up. Measuring some of the downsides of wealth is so much harder and more nuanced. They can be so nuanced and hard to measure that many people won’t even believe they exist. A downside to wealth? How could that possibly be? 

Let me propose that the absurdity of talking about the downside of wealth is part of why wealth doesn’t tend to make people as happy as they thought it would. 

When the benefits of money are so obvious but the downsides are so subtle, the downsides you didn’t anticipate can be more jarring than the benefits you expected. 

I want more money, of course. Almost everyone does, albeit for different reasons. 

This is not an anti-wealth list -- just a collection of subtle downsides that are easy to ignore, and so common you may as well call them the only true laws of getting rich.

Transcript

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0:00.0

Welcome back.

0:07.0

I found this statistic the other day. I added it up. It was not that hard to find but there are 13 divorces

0:18.4

among the 10 richest men in the world.

0:21.5

I repeat that.

0:23.0

Among the ten richest men in the world, there are a combined 13 divorces.

0:28.0

And seven of the top ten richest men in the world have been divorced at least once.

0:33.0

Now, correlation is not causation, and that sample size is tiny, of course.

0:40.0

But a statistic that is so much worse than the national average on a topic that is so fundamental to happiness,

0:50.0

all among a group of people whose lives are envied by so many other people is interesting, isn't it?

0:56.0

I've always thought it was. It kind of blew my mind.

1:00.0

Look, there are a million ways to get rich, most of which involve exploiting very specific opportunities

1:06.6

to say nothing of luck and that sort of thing.

1:09.6

So universal rules about how to get rich are very hard to come by. But losing money or losing

1:16.9

happiness when you have money or becoming a slave to your money or your money

1:21.5

interfering with the happiness in your family. Those

1:24.9

stories tend to have common denominators. Some of those stories are so common that

1:29.2

you can call them laws. This episode is called a few laws of getting rich. Now, measuring wealth is very easy.

1:39.2

You just count it up. You count their net worth. Very easy.

1:45.0

Measuring some of the downsides of wealth, though, is so much harder and more nuanced.

1:48.0

So you can measure your net worth,

1:50.0

but how do you measure a life that's going to lead you

1:52.0

to get divorced multiple times?

...

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