In the world of finance, success metrics often revolve around portfolio performance, market-beating returns, and accumulated wealth. However, for legendary investor Warren Buffett and renowned financial writer Morgan Housel, the ultimate measure of success follows a surprisingly introspective—even morbid—approach that transcends traditional financial benchmarks.
Housel, author of the bestselling book “The Psychology of Money,” recently shared his perspective on financial success that echoes Buffett’s long-held philosophy. Both men measure achievement not by the dollars in their accounts but by how they’ll be remembered and the relationships they’ve cultivated.
“The best measure of financial success isn’t how much money you make, but your ability to live a life that aligns with your personal values,” Housel explained during a recent interview. “Buffett has been saying this for decades, though few actually internalize what it means.”
This approach, sometimes called a “reverse obituary” exercise, involves imagining what others might say about you after you’re gone. For Buffett, who despite his $100+ billion fortune still lives in the same Omaha home he purchased in 1958, wealth accumulation has always been secondary to creating lasting impact and maintaining meaningful relationships.
“Buffett measures success by what he calls an ‘inner scorecard’ rather than an ‘outer scorecard,’” notes financial historian James Burton from the Institute for Economic Research. “It’s about self-evaluation based on personal standards, not external validation.”
The philosophy becomes particularly relevant in today’s high-pressure financial environment, where social media constantly showcases others’ apparent success. The Buffett-Housel approach offers a refreshing counter-narrative to “keeping up with the Joneses” mentality.
“What’s fascinating about both Buffett and Housel is their ability to simplify complex financial wisdom into actionable life philosophy,” says Rebecca Chen, behavioral economist at Cambridge Financial Studies. “They’ve recognized that wealth without purpose or relationship leads to diminishing returns in terms of actual happiness.”
This perspective doesn’t dismiss the importance of financial security. Rather, it reframes financial planning as a means to enable a well-lived life rather than an end goal itself. Buffett famously quipped that the ultimate luxury his wealth provides is independence—the freedom to do what he wants, when he wants, with whom he wants.
Housel takes this concept further by emphasizing that true wealth stems from controlling your time and maintaining your peace of mind. “The ability to do what you want, when you want, with whom you want, for as long as you want, is priceless. If you have that ability, you’re rich beyond measure,” Housel wrote in a recent newsletter.
Financial advisors have begun incorporating these philosophical elements into their practice. “We now ask clients to define what ‘enough’ means to them,” explains financial planner David Rosenberg. “It completely changes the conversation from ‘maximize returns at all costs’ to ‘what life do you actually want to live?'”
Both Buffett and Housel emphasize that financial decisions should support life goals rather than become the goals themselves. This might mean choosing a lower-stress job with more family time over a higher-paying position with constant demands, or prioritizing experiences over accumulating possessions.
The approach doesn’t dismiss ambitious financial goals. After all, Buffett built Berkshire Hathaway into one of the world’s most successful companies. Instead, it suggests evaluating success through a more holistic lens that includes relationships, personal growth, and contribution to others.
“Money is only a tool,” Housel often reminds readers. “It’s what you do with it and how it enables your ideal life that matters.”
For those seeking to apply this philosophy, the first step involves clarifying personal values and defining what “enough” means in concrete terms. The second step requires regular reflection on whether financial decisions align with those values.
As more people grapple with financial anxiety despite historical prosperity, the Buffett-Housel perspective offers a valuable recalibration. By focusing on the life we want to live and the legacy we hope to leave, financial decisions become clearer and often simpler.
In the end, as Buffett himself has said, “The only question is, do you have enough, and do you feel good about what you’re doing with it?” It’s a question worth considering, regardless of the size of your portfolio.
