With a title like “The Psychology of Money,” you might expect the material within to be dense and heavy. However, the book is extremely approachable and digestible.
If you really care about growing your net worth, investing and making important decisions in your life (why wouldn’t you?), I really recommend this book. It will transform what you think about money and life. Below are a few big ideas from the book. Enjoy!
Go out of your way to find humility when things are going right and forgiveness/compassion when they go wrong. Because it’s never as good or as bad as it looks. The world is big and complex. Luck and risk are both real and hard to identify. Do so when judging both yourself and others.
Less ego, more wealth. Saving money is the gap between your ego and your income, and wealth is what you don’t see. So wealth is created by suppressing what you could buy today in order to have more stuff or more options in the future. No matter how much you earn, you will never build wealth unless you can put a lid on how much fun you can have with your money right now, today.
Excerpt From: Morgan Housel. “The Psychology of Money: Timeless Lessons on Wealth, Greed, and Happiness.”