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A review by rhs1103
The Psychology of Money: Timeless Lessons on Wealth, Greed, and Happiness by Morgan Housel
5.0
Reread the concluding chapters as a few ideas have really stuck with me.
1. Manage your money in a way that helps you sleep at night.
Money is about emotion, not just rationality. It's not about performance or status—it’s about peace of mind, strength, stability, and security.
Having a bedrock of savings makes you feel good. Spending is about having fun and fun shouldn’t come at the expense of feeling good—otherwise it turns into stress.
2. Save to feel good and 'stay in the game' but forget arbitrary rules about rates.
For me, it’s less about hitting a specific percentage and more about asking:
Do I have enough money to achieve my goals?
What are my goals?
One of them is just feeling good and feeling protected against the uncertain.
Framing it this way feels far more motivating.
3. Celebrate progress.
At 33, I’ve achieved what my 23-year-old self always dreamed of: an independent, healthy lifestyle, living in a neighborhood I love, with an income that allows me to essentially buy what I want. I feel like I've done well by the younger version of myself and I wish I could have provided to them then what I have provided to me now.
Future Goals
My goals now are tied to the life I want to build, potentially with a partner:
A large emergency fund.
An apartment deposit to split with a partner.
Three big international trips before I turn 40.
A dog.
Maybe a 4-day workweek.
Longer term, family.
Habits that work for me
Enforced savings through super has lead to my largest source of wealth and has prompted me to use salary sacrifice to achieve some of my longterm goals. Redirecting income growth to savings has made that pain free. The next steps is to apply that same model to a low-cost index fund outside of super.
Housel’s central message that money is about freedom is ultimately one grounded in emotional wellbeing. To feel strong and free.
1. Manage your money in a way that helps you sleep at night.
Money is about emotion, not just rationality. It's not about performance or status—it’s about peace of mind, strength, stability, and security.
Having a bedrock of savings makes you feel good. Spending is about having fun and fun shouldn’t come at the expense of feeling good—otherwise it turns into stress.
2. Save to feel good and 'stay in the game' but forget arbitrary rules about rates.
For me, it’s less about hitting a specific percentage and more about asking:
Do I have enough money to achieve my goals?
What are my goals?
One of them is just feeling good and feeling protected against the uncertain.
Framing it this way feels far more motivating.
3. Celebrate progress.
At 33, I’ve achieved what my 23-year-old self always dreamed of: an independent, healthy lifestyle, living in a neighborhood I love, with an income that allows me to essentially buy what I want. I feel like I've done well by the younger version of myself and I wish I could have provided to them then what I have provided to me now.
Future Goals
My goals now are tied to the life I want to build, potentially with a partner:
A large emergency fund.
An apartment deposit to split with a partner.
Three big international trips before I turn 40.
A dog.
Maybe a 4-day workweek.
Longer term, family.
Habits that work for me
Enforced savings through super has lead to my largest source of wealth and has prompted me to use salary sacrifice to achieve some of my longterm goals. Redirecting income growth to savings has made that pain free. The next steps is to apply that same model to a low-cost index fund outside of super.
Housel’s central message that money is about freedom is ultimately one grounded in emotional wellbeing. To feel strong and free.