You know, “The trick is to be reasonable, not rational” is one of those lines that sticks with you. It’s a subtle but powerful distinction that changes how you approach money, business, and even life. Let’s break down why this is so brilliant.
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Meaning
At its core, this quote is about understanding that people are emotional creatures, not coldly logical spreadsheets. Being rational is about pure, unfeeling math. Being reasonable is about what works in the messy, unpredictable real world with real people.
Explanation
Okay, so here’s the thing I’ve seen play out again and again. A “rational” decision looks perfect on paper. The numbers add up, the logic is flawless. But it ignores the human element—fear, greed, ego, the need for safety, the desire for peace of mind.
Being “reasonable,” on the other hand, is about accepting that reality. It’s the acknowledgment that the theoretically optimal choice might be emotionally unbearable, or that a small financial inefficiency is a worthwhile price to pay for a good night’s sleep. It’s about sustainability over theoretical perfection. It’s the difference between a plan that *should* work and a plan that a human being can actually stick with.
Quote Summary
Reading Level55
Aesthetic Score60
Origin & Factcheck
This wisdom comes straight from Morgan Housel’s fantastic 2020 book, *The Psychology of Money*. It’s a modern classic for a reason. You sometimes see this idea floating around without attribution, but it’s Housel’s original phrasing and a central theme of his work on behavioral finance.
Attribution Summary
Where is this quotation located?
| Quotation | The trick is to be reasonable, not rational |
| Book Details | Publication Year: 2020; ISBN-10: 0857197681; ISBN-13: 978-0857197689; Pages: 256 (approx.) |
| Where is it? | Approximate chapter: Reasonable > Rational |
Context
In the book, Housel uses this concept to explain why the most successful financial strategies aren’t always the most mathematically complex. He argues that the best plan is the one you won’t abandon during a market crash, even if a robot would tell you to hold. It’s about tailoring your strategy to your own psychology, not to a textbook.
Usage Examples
Let me give you a couple of scenarios where this hits home.
- For an Investor: Selling 10% of a skyrocketing stock to lock in gains might not be “rational” if you believe it will go higher. But it’s perfectly reasonable if it lets you sleep soundly and avoid panic-selling later.
- For a Business Leader: Keeping a slightly larger cash reserve than strictly necessary isn’t the most “rational” use of capital from a pure ROI perspective. But it’s deeply reasonable because it gives you the optionality and resilience to survive a surprise downturn.
- For Anyone, Really: Paying off a low-interest mortgage early is often called “irrational” by financial pundits. But if it brings you profound peace and a sense of freedom? That’s a reasonable life decision.
This quote is for anyone making decisions where human emotion is a factor—so, you know, everyone.
To whom it appeals?
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FAQ
Question: So is being rational bad?
Answer: Not at all. Rationality is a fantastic tool. The point is not to be *irrational*, but to recognize that pure rationality has limits when applied to human behavior. Use rationality as a guide, but let reasonableness be the final judge.
Question: Can you give a simple analogy?
Answer: Sure. A rational diet is 100% optimized for macros and nutrients. A *reasonable* diet includes the occasional piece of birthday cake because it makes life worth living and the diet sustainable in the long run.
Question: How does this apply to arguing with people?
Answer: Aha, great question. You can be rationally right in an argument, with all the facts on your side, and still lose because you were unreasonable in your delivery and ignored the other person’s feelings. Winning the battle but losing the war, as they say.
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