The Real Enemy Threatening Your Wallet
“Hey, my friend totally turned his life around with crypto!” “A coworker finally signed a contract for a house in Seoul by borrowing every last bit of money.”
When you hear news like this, alongside congratulations, a creeping sense of anxiety and impatience often arises. Have you ever felt this way? We live in an era smarter than any before, with access to all financial information at our fingertips. So why does the path to becoming wealthy still feel like a dense, impenetrable fog?
Here’s a voice that firmly tells you it’s not because you haven’t tried hard enough. It’s the wise whisper from the global bestseller Morgan Housel’s ‘The Psychology of Money.’ The core message this book delivers is shockingly simple: wealth is not about intelligence or effort, but about psychology.
In other words, the reason we don’t become rich isn’t about which stocks we buy or how the market behaves, but about the irrational instincts and biases deep within our minds.
By the end of this story, you might realize that your biggest enemy threatening your wallet was ‘yourself,’ and gain the courage to start a new journey toward true wealth.
First Trap: The Mirage of “Wealth for Show”
The Question Posed by “The Man Driving a Ferrari”
‘The Psychology of Money’ shares a fascinating story called “The Paradox of the Man Driving a Ferrari.” When a dazzling Ferrari speeds by on the street, we instinctively think, “Wow, that car owner must be amazing!”
But at that moment, what we picture isn’t the person behind the wheel. It’s ourselves driving that Ferrari looking cool.
This is a small tragedy of modern society dominated by social media. We admire others’ glamorous posts (luxury restaurants, designer bags, picturesque overseas trips), but what we really desire is not the person but what they enjoy. Before we know it, we start spending far beyond our income to create that “impressive” image — stepping hard on the ‘debt accelerator.’
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- Around us: It’s common to see people spending a large part of their salary on leasing luxury foreign cars and splurging tens of thousands of won on weekend Instagram-worthy ‘omakase’ meals. But this is like kicking away precious opportunities to save the ‘invisible money (seed money)’ needed to become truly wealthy. Real wealth grows quietly in places unseen by others, like bank balances or stock accounts. “Consumption for show” burns all that nourishment like a severe drought.
Mentor’s Warm Advice: If someone drives a fancy car, just admire the car. Say, “That car is really cool!” The moment you start idolizing the person, a dangerous temptation to pay for their car with your own money sprouts in your mind. Remember, true wealth isn’t flashy possessions but the freedom to choose your own life.
Second Trap: The Fear of “Being Left Behind”
When the Fear of “Sudden Poverty” Pushes Us to Recklessness
Humans have lived in groups for a very long time. It was much safer to follow the crowd than to be alone in an unfamiliar field. But this ancient survival instinct can become a shortcut to bankruptcy in today’s financial markets.
Especially in our society, the FOMO (Fear Of Missing Out) is deeply ingrained: “What if I’m the only one left behind?” When asset prices soar, instead of calmly sticking to our plans, we get swept up by the fear of “What if I end up broke?” This fear leads us to join dangerous trends like “debt investing” and “borrowing every last bit” at the market’s peak.
- Around us: Remember the 2021 frenzy in stocks and cryptocurrencies? Many rushed to open accounts and invested in coins they had never heard of before. Their decisions weren’t based on company value analysis but on “social proof bias” — “Everyone else is doing it.” Such irrational herd behavior sadly creates the “last ants” who suffer the biggest losses when the bubble bursts.
Mentor’s Warm Advice: The path most traveled in investing can be the most dangerous. When everyone is cheering and celebrating, take a step back and be cautious. When everyone is panicking and fleeing, quietly look for opportunities. Investing isn’t a popularity contest; it’s a somewhat lonely journey guided strictly by your own principles and standards.
Third Trap: The Impatient Desire for a “Big Win”
The Secret of the World’s Most Boring Millionaire
The most powerful and mysterious magic in ‘The Psychology of Money’ is compounding.
Warren Buffett made over 95% of his wealth after turning 65. But this magic happens slowly and boringly, like watching paint dry on a wall. So our minds wander, searching for a thrilling “big win” that brings huge profits quickly.
This impatience might be linked to our history of rapid economic growth and crises like the IMF bailout, which made short-term, high-volatility gains more familiar than slow and steady investing.
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- Around us: The MZ generation’s craze for theme stocks, frequent day trading, and high-risk leveraged products are results of this impatience. It’s human nature to be more attracted to a risky stock that might jump 20% tomorrow than a solid stock that doubles in 10 years. But these attempts are mostly expensive entertainment that fills brokerage pockets with frequent fees rather than true wealth-building. Becoming rich is not a 100-meter sprint but a lifelong marathon.
Mentor’s Warm Advice: Your ability to endure boredom will determine your wealth. Start today with even just 100,000 won. Invest monthly in index funds (ETFs) tracking the S&P 500 or KOSPI, and then forget about it. Ten or twenty years from now, that boring time will bring you magical rewards. Compounding is the most powerful yet most easily ignored force in the world.
Fourth Trap: When Old Maps Block New Paths
The Familiar Shadow of the “Real Estate Invincibility Myth”
We learn about the world through experience. Especially sweet successes become deeply ingrained standards for our behavior. Behavioral economics calls this the “availability heuristic,” a mental shortcut relying on the most easily recalled information.
The most powerful availability heuristic dominating our society for decades is the “real estate invincibility myth.” Our parents’ generation witnessed firsthand how saving salary and taking loans to buy a house led to growing assets over time. This strong success story has been passed down to the MZ generation, instilling a firm belief that “real estate is the ultimate investment.”
- Around us: Despite rising interest rates and demographic changes creating a very different economic environment, many young people still spend most of their income repaying real estate loans. They miss chances to diversify into promising assets (e.g., global quality stocks) and take the risk of putting all their eggs in one illiquid basket. This is less a rational choice and more a psychological bias of “it worked before, so it will work again.”
Mentor’s Warm Advice: You can’t explore new paths with an old map. There’s no guarantee your parents’ success formula will work for you. What we must learn from history is not a specific success formula but the fact that the world is constantly changing. Always keep an open mind, study various assets, and draw your own investment map suited to your era.
Fifth Trap: Becoming Rich vs. Staying Rich
What People Who Lose Everything Suddenly Have in Common
Making money sometimes requires optimism, boldness, and risk-taking courage. But staying rich requires the opposite: humility, a bit of pessimism, and the wisdom to say ’enough.’
Many who hit a lucky “big win” mistakenly believe their success is purely skill. They take bigger risks and eventually lose everything.
- Around us: The heartbreaking stories of young investors who made billions during the 2021 crypto boom but went bankrupt within a year illustrate this clearly. They knew how to “make money” but not how to “keep money.” The most important rule for staying rich is never to go bankrupt. Survival is paramount. Staying alive in the market to enjoy the magic of compounding is far more important than chasing risky high returns.
Mentor’s Warm Advice: Your financial goal should not be “the highest return.” It should be “a sustainable return that never breaks for life.” Once you reach your target return, have the courage to reduce risky assets and be content. No soccer team ever sends the goalkeeper forward to attack when leading 3-0 at halftime!
True Wealth Grows from Your Attitude
So far, we’ve traveled through five mental obstacles blocking the path to wealth. All these mistakes point to one truth: successful investing depends less on how much you know and more on how you behave.
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If reading this made you feel a bit uncomfortable, congratulations. It’s a positive sign that you’re ready to change. Instead of grand plans, why not start with small behavioral changes today?
Spend 10 minutes less on social media apps, ask your friend “What’s your investment philosophy?” instead of “What’s your return?”, and consistently buy index funds with even just 10,000 won.
These small, seemingly boring actions are the surest compass guiding you toward true wealth. Your greatest asset isn’t market information or stock tips. It’s your calmness that remains unshaken amid any market waves.
Now, it’s time to calmly write your own history of wealth.