The Psychology Of Money

Morgan Housel's The Psychology of Money contains timeless lessons on wealth, greed, and happiness. The book was published in the year 2020. It offers a unique perspective on the use of money and how people's weaknesses with money stem from their relationship with it.

The author demonstrates that wealthy people make the most irrational financial decisions, and the goalpost moves as people earn more money. As a result, knowing when to spend enough and be satisfied is critical. The book also explains the car paradox, in which people do not think others in expensive cars are cool, but instead imagine themselves in that car. The book is one of the best books on financial freedom to read.

Important Takeaways:

• The author uses people's money relationships and perspectives to explain why they are afraid of investing and reinvesting.
• The book cites businessman Warren Buffet as an example of the power of compounding.
• According to the author, a tight budget, flexible thinking, and a flexible timeline can help people make good investments.
• The author advises readers not to be misled by people's apparent wealth.

Author: Morgan Housel

Link to buy: https://www.amazon.com/dp/0857197681?tag=wallstreetmoj-20&linkCode=ogi&th=1&psc=1