20th February 2026
The late investor Charlie Munger was known for his prolific wisdom.
Perhaps his wisest insight of all came when he was asked to reflect on the source of his own happiness: “The first rule of a happy life is low expectations. If you have unrealistic expectations you’re going to be miserable your whole life.”
His words echo an old aphorism, which says that low expectations are the key to life.
Morgan Housel once wrote: “Actual circumstances don’t make much difference. What generates all the emotion is just how big the gap is between expectations and reality. Everyone, everywhere, doing almost any task, is just in pursuit of finding some space between expectations and reality.”
So, by definition, if you keep your expectations perpetually very low, you’ll always be happy.
Science also does seem to support this general idea.
In a series of brain imaging experiments, researchers at the University College, London found that happiness isn’t driven primarily by how well things are going, but by whether outcomes exceed or fall short of what was expected.
In my experience, this model is mostly correct, but it feels incomplete.
Life can’t just be about keeping your expectations low on all things at all times.
It’s too passive. It completely ignores your capacity to take action to shape the world around you.
Achievments don’t happen without the expectation of a higher scale. I’d rather Aim for the moon and land among the stars, than not aim at all.
I prefer having low expectations of how people will respond in any relationship, but that doesn’t mean I have to respond the same way, its their Karma versus mine.
But in all other aspect of life, I have high expectstions from myself – I set the bar higher.
So, here’s the model that feels more complete to me, at least:
Low expectations for things outside your control.
High expectations for things within it.
You should never have low expectations for yourself.
I have a high expectation from what I will do and achieve in my life but a low expectation of how others will contribute in my life.
You don’t control the hand you’re dealt, but you always control how you play it. Low expectations for the hand, high expectations for what you do with it.
That doesn’t mean it’ll always work out. Sometimes you’ll do everything within your control and life will insist on doing the opposite – the typical life stuff.
It does mean you’ll be at the wheel on your own journey to happiness.
I’ll conclude by offering my own version of Charlie Munger’s timeless wisdom:
The first rule of a happy life is low expectations for things outside your control and high expectations for things within it. If you have high expectations for the world and no expectations for yourself, you’re going to be miserable your whole life.
Hence, Aim High – Expect low & stay blessed forever.