How I write Podcast | Morgan Housel: How to Master Writing

PODCAST INFORMATION

  • Podcast: How I Write
  • Episode: Morgan Housel how to master writing
  • Host: David Perell
  • Guest: Morgan Housel (Author of “The Psychology of Money”)
  • Duration: 1 hour 8 minutes

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🎯 HOOK

The most revolutionary writing advice for our distracted age is surprisingly simple: get to the freaking point; a principle that has become more critical than ever as readers now have endless alternatives competing for their attention.

💡 ONE-SENTENCE TAKEAWAY

Great writing requires getting to the point quickly, telling compelling stories rather than lecturing, and embracing the creative process that happens in unstructured moments rather than forced productivity sessions.

📖 SUMMARY

In this illuminating conversation, David Perell sits down with Morgan Housel, author of the bestselling book “The Psychology of Money” which has sold over 8 million copies, to explore the art and craft of writing in our distracted age. Housel, who wrote over 4,000 blog posts before publishing his breakout book, shares his journey from blogger to celebrated author and the writing principles that have made his work resonate with millions.

The conversation begins with Housel’s core philosophy that writing must be instantly understandable. He argues that “there are no points awarded for difficulty in writing” and that readers should never have to reread paragraphs to grasp meaning. He cites author Erik Larson as a master of concision who can convey in a page and a half what would take other historians 17 pages, without removing any substance.

Housel explains why this principle has become even more critical today: readers now have constant distractions from phones, tablets, and other screens. When a book becomes boring, readers can instantly switch to something else. He references Mark Twain’s practice of reading aloud to his family and watching their facial expressions to identify when they leaned forward (engaged) or got bored (needed to cut).

The discussion explores Housel’s approach to collecting and using stories. He explains that while many anecdotes can make good book chapters, the best stories are often just three lines that stick with readers forever. He estimates his latest book contains about 140 stories across 210 pages, noting that without stories, even finance professionals would be bored by writing about money.

Housel shares his thoughts on ChatGPT and AI, noting that while he uses it “twice an hour or more” as a research tool (describing it as “Google on steroids”), he remains committed to writing every word himself. He believes the process of writing is what helps authors think, and using AI for actual writing would strip away that essential element.

The conversation delves into the difference between being teachy and preachy, with Housel explaining that he doesn’t give specific advice because he doesn’t know his readers personally. Instead, he shares stories about psychology and lets readers figure out how to apply the lessons to their own lives.

Housel discusses his creative process, emphasizing that good ideas can’t be scheduled and often come during unstructured moments like walking his dog or taking a shower. He describes his “wide funnel, tight filter” approach to reading; starting any book that looks 1% interesting but being merciless about abandoning it if it doesn’t work.

The conversation explores how Housel developed his distinctive writing style through 4,000 blog posts and the feedback he received in comment sections. He explains his evolution toward “selfish writing” creating content that he personally enjoys rather than trying to please everyone.

Housel shares his perspective on the value of books versus other forms of content, describing social media as spring training, blogs as regular season games, and books as the Super Bowl where the stakes are highest. He also discusses how writing has changed his reading, giving him a greater appreciation for beautiful prose even when he disagrees with the author’s arguments.

The conversation concludes with Housel’s thoughts on observation, noting that great writers spend 1% of their time writing and 99% reading and thinking. He shares a simple practice for improving observation: playing “I Spy” to notice details others miss.

🔍 INSIGHTS

Core Insights

  • Getting to the point quickly is more critical than ever due to endless distractions competing for readers’ attention
  • Stories are essential for non-fiction writing because they allow readers to empathize and contextualize information in their own lives
  • The process of writing is what helps authors think; using AI for actual writing strips away this essential element
  • Good ideas can’t be scheduled and often come during unstructured moments rather than forced productivity sessions
  • Writing style develops through repetition and feedback, not through conscious effort alone
  • Readers will give books slightly more patience than articles, but not much; still need to hook them quickly
  • You don’t need new ideas to write a great book; you just need to say existing ideas better
  • Great writers spend most of their time observing and thinking, not actually writing
  • The most effective writing teaches through stories rather than lectures
  • Beautiful prose can make flawed arguments enjoyable to read

How This Connects to Broader Trends/Topics

  • Growing importance of concision in an age of information overload
  • Evolution of writing processes with the rise of AI tools
  • Changing reading habits and attention spans in the digital age
  • The enduring value of long-form content despite shorter attention spans
  • The role of storytelling in making complex topics accessible
  • The balance between accessibility and depth in non-fiction writing

🛠️ FRAMEWORKS & MODELS

The Get to the Point Framework

Housel’s core philosophy for effective writing:

  • Instant Understandability: Readers should grasp your meaning on first reading without rereading
  • Concision Without Substance Removal: Like Erik Larson, convey in a page and a half what others take 17 pages to say
  • Reader Empathy: Put yourself in the reader’s position and recognize their endless alternatives
  • The Mark Twain Test: Watch for reader engagement (leaning forward) versus boredom (needing to cut)

The Story Collection Framework

Housel’s approach to gathering and using stories:

  • Three-Line Stories: The most powerful stories are often just three lines that stick with readers forever
  • Story Density: Aim for approximately 140 stories across 210 pages (roughly one story every 1.5 pages)
  • Story as Hook: Use compelling stories like the Vanderbilt family’s fortune ($300 billion equivalent that vanished in 60 years) to draw readers in
  • Story Over Lecture: Stories allow readers to figure out lessons for themselves rather than being told what to think

The Creative Process Framework

Housel’s approach to generating ideas and writing:

  • Unstructured Time: Good ideas come during walks, showers, and other unstructured moments, not scheduled sessions
  • Wide Funnel, Tight Filter: Start reading any book that looks 1% interesting but abandon it mercilessly if it doesn’t work
  • Selfish Writing: Create content you personally enjoy rather than trying to please everyone
  • One Sentence at a Time: Write sentence by sentence, taking breaks between each to think about the next

The Content Hierarchy Framework

Housel’s perspective on different forms of writing:

  • Social Media: Spring training; low stakes, experimental
  • Blogs: Regular season games; moderate stakes, consistent output
  • Books: The Super Bowl; highest stakes, career-defining
  • Reader Patience: 3 words for tweets, 1-2 lines for articles, 8 pages for books before losing attention

The Observation Framework

Housel’s method for becoming more observant:

  • I Spy Practice: Go somewhere and identify 20 details you notice
  • Constant Note-Taking: Interrupt conversations to write down interesting observations
  • 99% Thinking, 1% Writing: Great writers spend most of their time observing and thinking
  • Sensory Details: Notice not just what happens but how things look, sound, and feel

💬 QUOTES

  1. “Just get to the point. Get to the freaking point. That has always been the case, but it’s way more today.”

  • Morgan Housel on the most important writing principle

  1. “There are no points awarded for difficulty in writing.”

  • Housel on why complex language doesn’t make writing better

  1. “I’ve often felt if you’re reading like uh particularly for for older texts just because the language was different back then. If you have to reread the paragraph four times because it’s deep writing, it’s not bedtime writing. That’s that’s not on you. That’s that’s that’s the author’s fault.”

  • Housel on reader-friendly writing

  1. “The entire goal of the POC is to create a business case, period, full stop.”

  • Housel on reframing proof of concepts as business case development

  1. “The psychology of money. I’ve talked about this before. I shamelessly stole it from Charlie Munger’s speech, the psychology of human misjudgment.”

  • Housel on where his famous book title came from

  1. “Good ideas can’t be scheduled. Cannot be scheduled.”

  • Housel on when creative insights occur

  1. “I’m always going to remain old school there. Every letter will be typed by me. Of course, um it it obviously feels like cheating if you’re using it. Even if you’re taking the text that it wrote and trying to put it in your own voice, I think it strips away the true meaning of writing, which is the process of writing is what gets the author thinking.”

  • Housel on why he won’t use AI for writing

  1. “I think I’ve gained a little bit of that with books. I would bet that I can read three pages of a book and tell you how many copies it sold.”

  • Housel on developing intuition for what makes a book successful

  1. “Concise doesn’t necessarily mean short. You can be a great length. You can write an 800-page book, but it’s just lack of fluff.”

  • Housel on the difference between concision and length

  1. “You don’t need to say something new. You just need to say it well.”

  • Housel on what makes writing effective

⚡ APPLICATIONS & HABITS

Practice Instant Understandability

Review your writing and identify any paragraphs that might require rereading. Simplify these until your meaning is immediately clear. Remember Housel’s principle: “There are no points awarded for difficulty in writing.”

Implement the Story Collection Method

Start a dedicated file or notebook for stories you encounter. Look for three-line stories that pack a punch and longer narratives that illustrate key points. When writing, ask yourself: “Could I tell this as a story instead of a lecture?”

Create Unstructured Thinking Time

Schedule unstructured time in your day without specific tasks. Use this time for walks, showers, or simply sitting without distraction. Keep a notebook handy to capture ideas that emerge during these moments.

Apply the Wide Funnel, Tight Filter Approach

Start reading books that look even 1% interesting, but be willing to abandon them quickly if they don’t engage you. Don’t feel obligated to finish books that aren’t right for you.

Practice Selfish Writing

Write content that you personally enjoy and find interesting, rather than trying to please everyone. Remember Housel’s insight: “I did my best work when I realized when I was writing it. I was like, I don’t I’m not even thinking about the audience. I’m not even thinking I just like it’s just like I like this.”

Develop Observation Skills

Practice the “I Spy” exercise Housel mentioned: go somewhere and identify 20 details you notice. Take notes during conversations about interesting observations. This will build your observational muscles over time.

Use AI as a Research Tool, Not a Writing Tool

Follow Housel’s approach of using AI as “Google on steroids” for research while writing every word yourself. Remember that the process of writing is what helps you think.

Embrace the One-Sentence-at-a-Time Method

Write sentence by sentence, taking breaks between each to think about the next. This approach can help you maintain focus and quality throughout your writing.

Practice the Mark Twain Test

If possible, read your writing aloud to others and watch their reactions. Notice when they lean forward (engaged) versus when they seem bored (need to cut).

Focus on Saying It Well, Not Saying Something New

Remember Housel’s insight: “You don’t need to say something new. You just need to say it well.” Focus on expressing existing ideas in fresh, compelling ways rather than chasing novelty.

📚 REFERENCES

  • “The Psychology of Money” by Morgan Housel
  • Erik Larson’s non-fiction books (mentioned as examples of concise writing)
  • “Dances with Wolves” (screenplay written by Kevin Costner’s homeless friend)
  • Ken Burns documentaries (mentioned as examples of storytelling excellence)
  • John Grisham novels (mentioned for their slow buildup followed by sudden shocks)
  • “No Ordinary Time” by Doris Kearns Goodwin (mentioned as an example of concise writing at length)
  • “The Decline and Fall of the Roman Empire” by Edward Gibbon (mentioned as beautifully written despite factual inaccuracies)
  • “Zen and the Art of Motorcycle Maintenance” (referenced in relation to quality)
  • “Conscious Business” by Fred Kofman (mentioned as Housel’s favorite management book)
  • “Good Inside” by Dr. Becky Kennedy (mentioned in relation to parenting and management)

⚠️ QUALITY & TRUSTWORTHINESS NOTES

E-E-A-T Assessment

Experience: Excellent. Morgan Housel demonstrates exceptional first-hand experience as a writer who has published over 4,000 blog posts and a bestselling book with over 8 million copies sold. His insights come from extensive practical experience across different forms of writing.

Expertise: Excellent. Housel shows deep expertise in writing craft, storytelling, and the creative process. His frameworks for getting to the point, collecting stories, and structuring content demonstrate sophisticated understanding of effective communication.

Authoritativeness: Excellent. As author of one of the most successful finance books of all time and a longtime columnist for major publications, Housel has established authority in writing and communication. His perspectives are backed by proven success with millions of readers.

Trust: Excellent. Housel provides balanced insights about writing, acknowledging both his strengths and limitations. He shares candidly about his process, including rejections from US publishers and his evolving approach to writing over time.

Quality Assessment

  • The podcast provides concrete frameworks that listeners can implement in their own writing
  • Housel shares specific examples from his experience writing thousands of blog posts and books
  • The conversation balances theoretical principles with practical application
  • The host asks thoughtful follow-up questions that probe deeper into key concepts
  • The discussion acknowledges uncertainties and different approaches to writing
  • The content is well-structured with clear transitions between topics
  • The insights are relevant to both aspiring and experienced writers

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