The Psychology of Money, by Morgan Housel, is the best book ever published on the subject of money. Please read if you want to understand more about money and how to make money with it. This is an absolute must-read.
Morgan Housel offers his knowledge via 19 short tales in The Psychology of Money, which will help you comprehend the most essential part of everyone’s life, money, in a straightforward and informative manner.
This book covers a variety of topics related to money, including Personal Finance, Investment, Savings, and much more.
Best Quotes from The Psychology of Money
Money is everywhere, it affects all of us, and confuses most of us.
To grasp why people bury themselves in debt you don’t need to study interest rates; you need to study the history of greed, insecurity, and optimism.
We all think we know how the world works. But we’ve all only experienced a tiny sliver of it.
Controlling your time is the highest dividend money pays.
The more the Internet exposes people to new points of view, the angrier people get that different views exist.
There is no reason to risk what you have and need for what you don’t have and don’t need.
There are many things never worth risking, no matter the potential gain.
Aiming to be mostly reasonable works better than trying to be coldly rational.
Good investing is not necessarily about making good decisions. It’s about consistently not screwing up.
Spending money to show people how much money you have is the fastest way to have less money.
Planning is important, but the most important part of every plan is to plan on the plan not going according to plan.
There are a million ways to get wealthy, and plenty of books on how to do so. But there’s only one way to stay wealthy: some combination of frugality and paranoia.
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Having a strong sense of controlling one’s life is a more dependable predictor of positive feelings of wellbeing than any of the objective conditions of life we have considered.
Doing something you love on a schedule you can’t control can feel the same as doing something you hate.
Realize that not all success is due to hard work, and not all poverty is due to laziness. Keep this in mind when judging people, including yourself.
Success is a lousy teacher. It seduces smart people into thinking they can’t lose.
Things that have never happened before happen all the time.
Independence, to me, doesn’t mean you’ll stop working. It means you only do the work you like with people you like at the times you want for as long as you want.
Endurance is key. And when you consider our tendency to change who we are over time, balance at every point in your life becomes a strategy to avoid future regret and encourage endurance.
Doing well with money has little to do with how smart you are and a lot to do with how you behave.
Growth is driven by compounding, which always takes time.
The line between “inspiringly bold” and “foolishly reckless” can be a millimeter thick and only visible with hindsight.
The highest form of wealth is the ability to wake up every morning and say, “I can do whatever I want today.
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The wisdom in having room for error is acknowledging that uncertainty, randomness, and chance—“unknowns”—are an ever-present part of life.
Everything has a price, but not all prices appear on labels.
Everything in finance is data within the context of expectations.
Focus less on specific individuals and case studies and more on broad patterns.
Optimism sounds like a sales pitch. Pessimism sounds like someone trying to help you.
Savings can be created by spending less. You can spend less if you desire less. And you will desire less if you care less about what others think of you.
Financial success is not a hard science. It’s a soft skill, wher how you behave is more important than what you know.
Your success as an investor will be determined by how you respond to punctuated moments of terror, not the years spent on cruise control.
One of the most powerful ways to increase your savings isn’t to raise your income. It’s to raise your humility.
Expecting things to be bad is the best way to be pleasantly surprised when they’re not. Which, ironically, is something to be optimistic about.
The correct lesson to learn from surprises is that the world is surprising.
The wisdom in having room for error is acknowledging that uncertainty, randomness, and chance—“unknowns”—are an ever-present part of life.
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