Ego vs savings: The Ultimate Money Hack!

Aspire Compass

Hey there

Welcome to Edition #10 of Aspire Compass!

We’re wrapping up our Psychology of Money series with a game-changing lesson—the one that hit me hardest. Let’s dive into the final (and most powerful!) takeaway from Morgan Housel’s masterpiece.  

Here’s the lesson: "Save as much as you can

This lesson changed my entire perspective on saving. and i believe it can do the same for you.

Forget everything you think you know about saving. Housel flips the script:  

“Savings = Needs – Ego”

Here’s the breakdown:  

• Needs: Essentials you can’t live without (rent, groceries, bills).  

• Ego: The sneaky stuff we buy to “feel rich” (that shiny new phone, luxury car, or designer shoes).  

💸 Most of us save like this:  

 Income – Expenses = Savings 

But Housel says that’s backward. 

The magic formula? 

 💡Needs – Ego = Savings 

The less you feed your ego, the more you grow your savings. Simple, but life-changing.  

 🔑Why This Works

Ego is expensive: Every “look-how-successful-I-am” purchase chips away at your future wealth.  

Control your needs: Stick to essentials.  

Starve your ego: Ask, “Am I buying this to survive… or to impress?” 

The result? Your savings skyrocket

and you’re free to build real wealth—not just flashy stuff

💡 Your Action Plan

1. Audit your spending: Label every purchase as “Need” or “Ego.”  

2. Slash the ego: Cut one non-essential purchase this week.  

3. Automate savings: Treat savings like a “need” (because it is!).  

Remember: Wealth isn’t about what you spend—it’s about what you keep. 

🗨️Let’s Reflect!

What’s one “ego spend” you could ditch today? Hit reply—I’d love to hear your goal!

Final thoughts on the psychology of Money

Thank you for joining me on this 10-day journey we’ve explored some incredible money lessons from this book. If you haven’t read it yet, I highly recommend it! Unlike technical investment guides, The Psychology of Money focuses on the mindset behind financial success—a must-read for anyone looking to build lasting wealth.

Let me know your thoughts! Which lesson resonate with you the most? Hit reply and share your insights

That’s it

Stay curious, stay grounded,  

[Arif Hasan] 

Aspire Compass 

P.S. Craving more wisdom? Grab a copy of The Psychology of Money – it’s not about stocks or crypto, but about rewiring your money mindset.

 📌Important Disclaimer:

This newsletter is for information and educational purposes only, the above are not financial advice. We are not associated with any of the listings from above (unless mentioned otherwise). Do your own due-diligence.