The Psychology Of Money Summary
Know what you own, and know why you own it
Peter Lynch
Some of the life aspects need behavior development rather than intelligence. Confused, right? I can explain. So here is my review of the book, The Psychology of Money by Morgan Housel. Let us discuss the top five takeaways of this book one by one.
First one pays the price; that means every investment has its benefits and losses. Our money decisions depend upon our financial DNA. Wait a minute. What is financial DNA? We often judge people on their investments. For example, if someone spends too much on brands like Gucci and Chanel, we would say he is such an extravagant person. On the other hand, if someone is conservative about money, we would say, He is such a miserly person. But the truth says we often have financial strategies linked to our past experiences, upbringing, and environment. It’s just like your DNA and genes controlling your body’s functioning and traits. a visual representation of recency bias.
It all depends on the way you look at your money. Do you really need to expend on something extraordinary, or is it just part of social pressure? What was your first turning point that made you think about your expenditures, and what makes you so desperate about making money?
Ignore the noise and stay invested
Always remember one strategic approach towards your investments. The base of every output depends on your early investment and long-term patience and hold. Time is the actual asset.
Let’s take an example of crypto. When it was first launched, it was criticized, and the Bitcoin on its very first launch cost just $0.003, which is round about 8,372,261.01. Now people look at it as a serious investment. Never take a decision when you really don’t need it. Do you make decisions on the basis of emotions or facts?
The Psychology Of Money Details
| Title | The Psychology of Money |
| Author | Morgan Housel |
| Publishing Date | January 1, 2020 |
| Genre | Motivational books, self help, money psychology, investments, profit, growth |
| Rating | 5 stars |
FAQs
What is the main point of The Psychology of Money?
You don’t have to be a genius to accumulate wealth. What is most important is how patient, disciplined, and consistent you are – and not necessarily how intelligent.
Some individuals become wealthy by chance, while others lose all that they have even after doing everything correctly. Don’t follow others blindly. Know that luck and risk are real and they are mighty.
Pursuing more and more money without knowing your limit is risky. Be satisfied, and learn how to say, “This is enough for me.”
What is the moral of the story The Psychology of Money?
The Psychology of Money is not just about figures, investing, or becoming rich. It’s a book on why and how we think and feel about money. Morgan Housel elaborates that good finance decisions are not just about what you know, but about how you behave. And how we act with money has a great deal to do with our life experiences, emotions, and state of mind
