Page 103 - Morgan Housel - The Psychology of Money_ Timeless Lessons on Wealth, Greed, and Happiness-Harriman House Limited (2020)

Let me convince you to save money.
COBACOBA

It won’t take long.

But it’s an odd task, isn’t it?

Do people need to be convinced to save money?

My observation is that, yes, many do.

Past a certain level of income people fall into three groups: Those who
save, those who don’t think they can save, and those who don’t think they
need to save.

This is for the latter two.

The first idea—simple, but easy to overlook—is that building wealth

has little to do with your income or investment returns, and lots to do
with your savings rate.

A quick story about the power of efficiency.

In the 1970s the world looked like it was running out of oil. The calculation
wasn’t hard: The global economy used a lot of oil, the global economy was
growing, and the amount of oil we could drill couldn’t keep up.

We didn’t run out of oil, thank goodness. But that wasn’t just because we
found more oil, or even got better at taking it out of the ground.

The biggest reason we overcame the oil crisis is because we started building
cars, factories, and homes that are more energy efficient than they used to
be. The United States uses 60% less energy per dollar of GDP today than it
did in 1950.³² The average miles per gallon of all vehicles on the road has