Morgan Housel, an expert in behavioral finance, has introduced an unconventional method for evaluating one’s success: writing a reverse obituary. This exercise involves envisioning what one hopes their obituary will say and then aligning their actions with that vision. Housel discusses this concept in his latest book, “The Art of Spending Money,” drawing parallels to the mindset of investment titan Warren Buffett. Buffett, who highlighted similar themes in his shareholder letters, emphasizes that one should cultivate a legacy that holds meaning beyond material possessions.
Morgan Housel’s Perspective on Legacy and Spending
In his book, Housel showcases the importance of viewing spending as an art rather than a science. He asserts that financial decisions should not adhere to a universal strategy. Instead, it’s essential to recognize what truly matters in life.
Key Insights from “The Art of Spending Money”
- Spending is an individual journey that varies for each person.
- Material possessions should not dominate one’s financial priorities.
- Legacy involves community involvement and personal relationships over wealth.
Housel reflects on his own journey, sharing how his desires shifted from wanting luxury items, such as sports cars and large homes, to valuing family and community connections. He believes that assessing life through the lens of one’s desired obituary enables clarity on what truly holds value.
Influences from Warren Buffett and Other Leaders
Warren Buffett has been a guiding figure for many, including Housel. Buffett’s approach to life centers on recognizing lasting impact over fleeting material gains. He famously encourages individuals to write and live by their ideal obituaries.
Jeff Bezos has also alluded to similar reflections, highlighting the importance of reducing future regrets. His decision to leave a secure job was motivated by a desire to contribute positively to society. He, too, recognizes that people often wish they had focused more on relationships than wealth accumulation.
Conclusion: Aligning Actions with Values
Housel’s insights challenge conventional views on success and spending. By encouraging individuals to contemplate their legacies, he advocates for a deeper understanding of what constitutes a fulfilling life. As he states, focusing on what truly matters—relationships and community involvement—leads to more meaningful existence.
As the Fortune Global Forum approaches, discussing these themes of legacy and purpose becomes increasingly relevant. The event will take place in Riyadh on October 26–27, 2025, gathering CEOs and leaders to shape business’s future.
