The Psychology of Money, Morgan Housel (9/10)

Rating: 9/10

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🚀 The Book in 3 Sentences

1. A short, concise, and comprehensive personal finance book
2. Probably my favorite book on money because of its plain pragmatism
3. Grounded in and focused on personal/behavioral economics > quant

🎨 Impressions

• Loved this book. Very simple, plain, concise, and to the point. It was short, and I read it in a few hours. Initially written as a series of blog posts, the book combines stories with valuable lessons to provide a guide on navigating the psychological forces that drive our financial choices.

🥰 Who Would Like It?

• Folks interested in personal finance and behavioral economics

☘️ Top Lessons

• Financial success is less about intelligence and expertise and more about having the right mindset and understanding your own biases
• Long-term thinking and patience are essential for building wealth and achieving financial stability
• Managing risk is crucial, as financial setbacks can have a more significant impact on your life than potential gains
• Each person's financial journey is unique, so it's essential to find a personalized approach to money management that aligns with your values and goals
• Constantly learning from both your own and others' experiences can help you make better financial decisions and adapt to changing circumstances

💬 Top Quotes

• The hardest financial skill is getting the goalpost to stop moving
• Doing well with money has little to do with how smart you are and a lot to do with how you behave
• The world is filled with people who look modest but are actually wealthy and people who look wealthy but live at the razor's edge of insolvency
• Good investing isn't necessarily about making good decisions. It's about consistently not screwing up
• Your personal experiences with money make up maybe 0.00000001% of what's happened in the world, but maybe 80% of how you think the world works