Book 123 of 141

    From the library

    The Psychology of Money

    Morgan Housel, 2020

    In one paragraph

    Fix broken money scripts, build self awareness, choose steady compounding over flashy risk. Best read in early twenties.

    Also tagged

    Finance
    Psychology

    Where this sits in the operating system

    Behavioral Psychology Awareness

    Continuous Improvement & Feedback Loops

    Long-term Compound Thinking

    Mental Models & Decision Frameworks

    Conservative Margins

    Mental Models & Decision Frameworks

    Key insights

    Doing well with money has little to do with intelligence and a lot to do with behaviour under uncertainty.

    Room for error is the most important line item, because survival is what lets compounding happen at all.

    Tails drive everything. A small number of events produce most of the outcome, in portfolios and in careers.

    Recognise it early

    The failure and the correction sit side by side deliberately. Read the left column asking whether any of it is already true of you.

    What goes wrong

    Pursuing perfect financial knowledge without good behavior

    Success is about how you behavefocus on sustainable behaviors

    Constantly raising financial goals and expectations

    Hardest skill is getting goalpost to stop movingdefine enough

    Spending money to display wealth rather than build it

    Wealth is what you don't seefocus on accumulation not display

    Trying to optimize rather than survive financially

    Staying in the game makes the biggest differenceprioritize survival

    Judging others' money decisions without understanding their experience

    Recognize everyone's decisions make sense based on their unique experiences

    The same idea, argued differently

    Thomas J. Stanley

    Robert Kiyosaki

    James Clear

    Ron Chernow

    The full breakdown

    Before you close this

    Naming the specific moment you will act roughly doubles the odds you do.

    Reference

    Author
    Morgan Housel
    Published
    2020
    Category
    Business
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