The Psychology Of Money By Morgan Housel
Timeless Lessons on Wealth, Greed, and Happiness’ review in under 5 minutes.
Money’s greatest intrinsic value—and this can’t be overstated—is its ability to give you control over your time.”
Morgan Housel's award-winning book, "The Psychology of Money: Timeless Lessons on Wealth, Greed, and Happiness," is one of the best books on personal finance. This book is neatly written and contains a lot of wisdom and high-quality content.
Anyone interested in becoming better at managing money should read ‘The Psychology of Money.' This book will help you develop your thinking about money in a fast-paced and fascinating way.
Unlike other novels that are too long, you can finish this one in a week.
Key Takeaways: 'The Psychology of Money' is chock-full of intriguing concepts and useful advice. The following are a few examples.
Both luck and risks are hard to quantify.
The act of comparing oneself to others is an issue. All joy is stolen by comparison. Always keep in mind that there is always a bigger fish, it should be humbling.
Give yourself a chance to win by utilizing long tails.
Compounding is only effective if you give it enough time to work.
The ultimate type of wealth is the ability to do what you want when you want.
Don't be swayed by people who flaunt their money. It's tough to tell how wealthy someone appears at first glance.
Get rid of your ego. Wait for the ideal moments to present themselves. These are only possible if you save.
Instead of being rational, be reasonable. Reasonable is more realistic.
Investing isn't a difficult science.
Deal with market volatility. Accept it and live with it.
You must run your own race.
Best Quotes
“In theory, people should make investment decisions based on their goals and the characteristics of the investment options available to them at the time. But that’s not what people do.”
Money’s greatest intrinsic value—and thus can’t be overstated—is its ability to give you control over your time.”
“One of my deeply held investing beliefs is that there is little correlation between investment effort and investment results.”
“But there’s only one way to stay wealthy: some combination of frugality and paranoia.”
“And short-term traders operate in an area where the rules governing long-term investing—particularly around valuation—are ignored because they’re irrelevant to the game being played.”
“You are one person in a game with seven billion other people and infinite moving parts. The accidental impact of actions outside of your control can be more consequential than the ones you consciously take.”
“Using your money to buy time and options has a lifestyle benefit few luxury goods can compete with.”
“After spending years around investors and business leaders I’ve come to realize that someone else’s failure is usually attributed to bad decisions, while your own failures are usually chalked up to the dark side of risk.”
Morgan Housel is a partner at The Collaborative Fund and a former Motley Fool and Wall Street Journal contributor.
He is a two-time recipient of the Society of American Business Editors and Writers' Best in Business Award, a winner of the New York Times Sidney Award, and a two-time finalist for the Gerald Loeb Award for Distinguished Business and Financial Journalism. He currently resides in Seattle with his wife and two children.
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