The Psychology of Money: You’ll Change

Apr 24

Have you ever considered how much your goals and desires might change over time? In this episode, we dive into Chapter 14 of Morgan Housel's book, The Psychology of Money, exploring the concept that our future selves are often unpredictable. We tend to underestimate the extent to which our personalities and aspirations will evolve, and as we reflect on our past decisions, we may realize that what once seemed ideal may no longer align with who we are becoming. This is why it’s crucial to avoid extremes in financial planning, instead aiming for a balanced approach that accommodates life's inevitable changes.

By embracing the reality of evolving preferences and priorities, we can make more informed decisions that prioritize long-term fulfillment over short-term gains. From savings and careers to relationships, the key lies in endurance and flexibility. Let go of sunk costs and rigid expectations, allowing yourself the freedom to adapt and thrive in an ever-changing world.

What You’ll Learn:

Why we have to accept change.
The importance of allowing yourself room to grow.
How to avoid the extreme ends of financial planning.
The importance of acknowledging that you have changed—and will continue to change.
How to avoid sunk cost fallacy in financial planning.

Ideas Worth Sharing:

“We should avoid the extreme ends of financial planning.” - Fiat Wealth Management
“We should come to accept the reality of changing our minds.” - Fiat Wealth Management
“We talk about how the world around us is changing all of the time, but I think we could start talking more about how we—ourselves—are changing. We change, and we are going to continue to change.” - Fiat Wealth Management