The Psychology of Money

Behaviour is hard to teach, even to smart people, and money-investing, personal finance, and business decisions are typically taught as a math-based field. In The Psychology of Money, award-winning author Morgan Housel shares 19 short stories exploring the strange ways people think about money and teaches you how to make better sense of one of life's most important topics.

Format: Paperback
Length: 256 pages
Publication date: 08 September 2020
Publisher: Harriman House Publishing

Timeless lessons on wealth, greed, and happiness

It's not always about having a lot of money; it's about how you handle it. Even the smartest people can have trouble changing their behaviour when it comes to money. We're often taught that money is a math problem, with data and formulas telling us exactly what to do. But in reality, financial decisions are made in everyday situations, surrounded by personal experiences, perspectives, emotions, and other factors.

In his book "The Psychology of Money," award-winning author Morgan Housel shares 19 captivating stories that shed light on the weird ways people think about money. He teaches us how to make sense of this crucial aspect of life, helping us to navigate financial decisions with greater wisdom and clarity.

One of the key insights from "The Psychology of Money" is that money is not just a numerical value; it's a deeply emotional and psychological phenomenon. Our beliefs, attitudes, and experiences shape how we perceive and value money, and these factors can often override logical reasoning. For example, Housel shares the story of a woman who grew up in poverty and became a successful entrepreneur, but who still felt insecure about her wealth. She believed that her success was a fluke and that she was destined to fail again.

Another important lesson from the book is that we often make financial decisions based on short-term gains rather than long-term benefits. We're tempted by the promise of quick riches, but we may overlook the potential risks and consequences of our choices. Housel shares the story of a young man who invests in a risky stock, hoping to make a quick profit, but ends up losing everything he has.

To make better financial decisions, Housel suggests that we need to develop a more holistic approach to money. We should focus on building wealth, rather than just accumulating money, and we should consider the impact of our choices on ourselves, our families, and the world around us. He also emphasises the importance of developing a strong sense of self-control and resisting the urge to chase after fleeting sensations of pleasure or success.

One of the most powerful aspects of "The Psychology of Money" is its ability to bring financial concepts to life in a relatable and engaging way. Housel uses humour, storytelling, and personal anecdotes to make complex financial topics accessible to a wide audience. He breaks down complex financial concepts into simple, actionable steps, helping us to apply them to our own lives.

In conclusion, "The Psychology of Money" is a must-read for anyone who wants to improve their financial well-being. By understanding the emotional and psychological factors that influence our money decisions, we can make more informed and responsible choices that will lead to greater wealth and happiness. Whether you're a seasoned investor or someone just starting out, this book offers valuable insights and practical strategies for building a more prosperous financial future.

Weight: 278g
Dimension: 215 x 136 x 23 (mm)
ISBN-13: 9780857197689