Morgan Housel’s book, The Psychology of Money teaches you how money can be a friend and help you make better financial decisions. He doesn’t pretend that humans are ROI-optimizing machines. Instead, he teaches you how your psychology can work in your favor and against you.
Morgan Housel is a Partner at The Collaborative Fund, and was a columnist for The Wall Street Journal and The Motley Fool.
He has been a winner of two times the Best in Business Award of the Society of American Business Editors and Writers. He also won the New York Times Sidney Award and was a finalist twice for the Gerald Loeb Award of Distinguished Business and Financial Journalism.
What is this Book Consist Of ?
Morgan Housel’s bestselling book, “The Psychology of Money” is a classic in personal finance. This book is clean and concise. It offers lots of wisdom and high quality content.
Morgan Housel tells 19 stories about the bizarre ways people view money in this book. This book focuses on observations about our relationship to money and reveals how our financial thinking drives our most important decisions in life.
This book teaches that being smart and being a good steward of your money is only part of the equation. It has much to do with your behavior. This book will inspire you to make smart decisions and live a rich life.
Learnings from Psychology of Money
Many people are focused on the hard numbers and simple truths when it comes to money. But they forget one important point: how you view money is crucial.
I have always been curious about how to change my money mindset and look at the relationship between money, mental health, and money. I was so excited to read the book ” The Psychology of Money” by Morgan Housel.
The book is divided into practical lessons that you can use to improve your finances. Four lessons from the book helped me to improve my money mindset, and help me invest more.
The best thing about the book was the writing style. It is simple without jargon and concepts, but supported by many anecdotes that you can relate to. The author ends with his personal method for managing his money. It’s not about sharing knowledge, but actually applying it. To manage your money more effectively, you don’t need to be extremely smart or intelligent. However, it is possible to demonstrate certain behaviors and discipline in your daily life.
What did I like ?
Morgan Housel, “The Psychology of Money”Morgan’s book focuses on how people see money and why they take out debt. It also explains how to create wealth and how to save it. Morgan’s book is different from other books about stock markets and interest rates.“To understand why people are buried in debt, it’s not necessary to study interest rates. You need to look at the history of greed and insecurity as well as optimism.”
According to the author, behavior is more important than any other factors in achieving financial success. He says that being successful with money is about your behavior, not how smart you are. You will be able to achieve your financial goals if you engage in the right behavior.
The book is divided into chapters that examine the individual’s attitudes towards money and how they affect their behavior.
My Favorite Chapters Which help me in understanding Money :
- Luck and Risk
- Confounding Compounding
- Nothing is free
- Wealth is what you don’t see
Overall the Book ‘Psychology of Money’ is a Great book for beginner who wants to learn about Money. It does not tell you some magic that will grow your money overnight. It just gives us the insight how money and market works.
Although, It was an entertaining, interesting read that reinforced my views on money.
For me, the main takeaway was that investment success is largely due to rare “tail events”. This is something I can only control if I continue investing. I will do my best to keep it that way.
Read the Book if :
- If you are a beginner in investing
- You want to learn About Money
- Want to learn how Market works.
Skip the Book if :
- You Already know about market and Money
My Favourite Quote From Psychology of Money
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