A practical summary of The Psychology of Money by Morgan Housel—timeless lessons on wealth, behavior, and financial decision-making. Money is something that most people find really interesting. It's really important to us because we need it to live. We can't help being attracted to it and it has a big effect on us. Good morning LinkedIn connections today my book reviews on The Psychology of Money by Morgan Housel. This book is for everyone, regardless of age. Whether you're a 20-something just starting out, a 30-something looking to build wealth, a 40-something seeking to deepen your knowledge, a 50-something preparing for retirement, or a 60-something ready to enjoy your golden years.
✳ Financial success is not a hard science, it's a Soft Skill where how you behave is more important than how you know ✳
This book teaches the reader about how humans behave when dealing with money. How
#pride , #fear #greed , and #anxiety can influence a person and make them commit a mistake when money is the subject. How longevity in investment is a crucial factor behind your success. How easily we judge someone as crazy, based upon their actions and not considering the fact that different experiences shape one's opinion about how the world works. We all know that for a successful career Hard Work is significant but besides it, there are many other factors that play a key role and one of them is Risk&Luck. They both are siblings, as without the other one can't be studied.
With the rise of e-commerce and the gig economy, individuals can now leverage technology to earn money in various ways.
However, creating wealth depends more on your saving rate than on your return on investment. It's important to understand the concept of ✴ ENOUGH ✴ in financial terms and to focus on staying wealthy rather than just getting wealthy. Small achievements over time can lead to big rewards in the future. This book highlights freedom, reasonableness, and the power of compounding, using practical examples to promote wealth accumulation and preservation.
✳ Maximizing returns isn't the goal, consistency is. If you invest $10,000 and earn a 10% return, you'll have $11,000. But if you consistently earn 8% returns over 10 years, you'll have $21,589.
✳ Prioritizing control over your time and options is key. investing in a low-cost index fund allows you to have more control over your investments and frees up time you would have spent researching individual stocks, while still providing a consistent return over the long term. The Psychology of Money,
✳ Successful investing is about handling moments of terror. Rakesh Jhunjhunwala (Warren Indian) stayed invested in the Indian stock market during the 2008 financial crisis, holding on to undervalued stocks for the long term and looking for opportunities to buy more. His patience and discipline ultimately paid off with significant returns in the years following the crisis.
✅ Lesson: Our financial decisions are not just based on knowledge, but also on our personal relationship with money. Understanding our own psychology is key to making better financial decisions
