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No one is crazy — they're just playing a different game
💡 Your money decisions are shaped by your unique life experience — so are everyone else's, which is why nobody is really crazy.
People do seemingly insane things with money — but Housel argues no one is actually crazy. Every financial decision makes sense to the person making it in that moment, based on their unique experiences of how the world works.
Someone who grew up during high inflation invests differently than someone who came of age when prices were stable. A person who lived through the Great Depression treats risk differently than a 1990s day trader. Your personal experience with money is maybe 0.00000001% of what's happened in the world, yet it shapes 80% of how you think it works.
The lesson: judgments you make about others' 'reckless' or 'paranoid' choices ignore that they've lived a different life, with different fears and lessons. Recognizing this makes you humbler about your own beliefs — and slower to copy strategies built for someone else's game.
Source: The Psychology of Money: Timeless lessons on wealth, greed, and happiness — Morgan Housel