Chapter 7 Summary of The Psychology of Money by Morgan Housel: Freedom > Wealth
In Chapter 7 of The Psychology of Money, Morgan Housel highlights a powerful truth that challenges many assumptions about wealth: despite being far richer than past generations, Americans are not necessarily happier. In fact, compared to much of the world, Americans—though extraordinarily wealthy—report being more stressed and worried during the day.
So, what’s missing? According to Housel, the answer isn’t more money—it’s freedom. He argues that “money’s greatest intrinsic value—and this can’t be overstated—is the ability to give you control over your time.” That’s the kind of wealth that matters: the ability to wake up and choose how to spend your day, free from the obligations that come from living paycheck to paycheck or chasing social status.
But instead of using wealth to buy freedom, many Americans have used it to buy more things and bigger things—homes, cars, devices—all of which often come with bigger bills and more stress. Ironically, this has resulted in less control over their time, not more.
Housel draws attention to a shift in the nature of work. In 1870, 46% of jobs were in manufacturing and 35% in crafts related to manufacturing—largely manual labor roles. Today, most Americans work in thinking jobs. These roles don’t end when you clock out. You might find yourself worrying about a project at 2 a.m., mulling over work while putting your child to bed, or checking emails during dinner. This mental carryover consumes your attention and invades your personal life, eroding the very freedom that wealth was supposed to offer.
The chapter also references 30 Lessons for Living by Karl Pillemer, in which a thousand elderly Americans were asked to share life lessons. Not one person said happiness came from making as much money as possible, from being wealthier than others, or from choosing a career based solely on earnings. Instead, they emphasized values like purpose, relationships, and control over their time.
Housel’s message is clear: wealth is not a goal in and of itself. It is a tool. And its most valuable use is in purchasing freedom—freedom to live according to your values, to prioritize your health and family, and to spend your time meaningfully. If we’re not careful, chasing money can actually lead us further away from happiness by stealing our most precious resource: time.
So instead of asking, “How can I earn more?” better questions might be, “What really is most important to me and gives me true happiness?” and “How can I use what I have to live better?”
At Provista Wealth we have a process to help you understand your core values, the things that are truly most important to you and then help you craft a plan to use your wealth, time, and resources to enhance those values.