A review by ciarazard
The Psychology of Money by Morgan Housel

informative medium-paced

5.0

 “Less ego, more wealth. Saving money is the gap between your ego and your income, and wealth is what you don't see."


The first book I've finished in 2024 after a slump — freaking FINALLY. It's a relatively quick read you can finish in one sitting, but it puts so many things into perspective. While initially I thought the points here were pretty common sense, I very quickly realized that they were addressing sneaky bad money habits that we often forget (or actively choose to ignore in pursuit of, you guessed it, ego!). I, myself, am guilty of so many things from this book. It's a nice wake-up call.

I highly recommend this to anyone who's been grappling with money challenges. The Psychology of Money SHOULD be a staple in everyone's shelf. Just don't expect it be a step-by-step field guide to managing your finances. In fact, the book repetitively hammers home this idea: "There is no single right answer; just the answer that works for you."

Allow me to also share some of the key lessons that resonated deeply with me:

  1. Humility in success, forgiveness during setbacks.
  2. Less ego = more wealth.
  3. Plan around risk and value the importance of margin for error.
  4. Time is the highest dividend. 
  5. Saving doesn't always necessitate justification.