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A review by ferch
The Psychology of Money by Morgan Housel
informative
lighthearted
fast-paced
4.0
I think I expected more from this book because it was so recommended, though the book does have some good insights. Also, most of this advice I already knew, “being rich and staying rich and different things”, “don’t spend money to impress”, “save money for the long-run”.
I did like the psychologic part of it “your financial decisions are not your fault but a result of your background and experiences that relate to the financial time you were born into; your feelings (greed/fear) control your impulses and restrain your actions.” That was really good because it forces you to think about your paradigmas and they way your vision is limited from the actual truth.
Also, it encourages you not to blame yourself from your fear of lossing money and it gives you good examples of historical financial crisis and ups in the market that are emotional scars on money.
I also like how it talks about luck and misfortune as random factors that you have to take into account. “Don’t overestimate others’ success nor your own.” And how it approaches investing stocks in a new way “all risks and losses are the price for long-term success” (I had kind of heard about this form Ali Abdaal but it was better explained.) It also talks about leaving room for error while investing and saving for unexpected expenses.
I did like the psychologic part of it “your financial decisions are not your fault but a result of your background and experiences that relate to the financial time you were born into; your feelings (greed/fear) control your impulses and restrain your actions.” That was really good because it forces you to think about your paradigmas and they way your vision is limited from the actual truth.
Also, it encourages you not to blame yourself from your fear of lossing money and it gives you good examples of historical financial crisis and ups in the market that are emotional scars on money.
I also like how it talks about luck and misfortune as random factors that you have to take into account. “Don’t overestimate others’ success nor your own.” And how it approaches investing stocks in a new way “all risks and losses are the price for long-term success” (I had kind of heard about this form Ali Abdaal but it was better explained.) It also talks about leaving room for error while investing and saving for unexpected expenses.