Psychology of money

https://www.goodreads.com/book/show/41881472-the-psychology-of-money Morgan Housel

• https://www.reddit.com/r/Fire/comments/rzx5ki/the_psychology_of_money_by_morgan_houselone_idea/
• https://www.reddit.com/r/books/comments/10f7sr1/key_take_aways_from_the_book_the_psychology_of

in the real world people don't make financial decisions on a spreadsheet. They make them at the dinner table, or in a meeting room, where personal history, your own unique view of the world, ego, pride, marketing, and odd incentives are scrambled together.

1. No one is crazy:

Doing well with money has a little to do with how smart you are and a lot to do with how you behave. And behavior is hard to teach, even to really smart people.

“People born in different generations tend to have varying views of money and this affects everything, including how they invest. ”

“We can do almost nothing about luck and risk and how they affect our finances.”

2. Stop chasing money

“On the one hand capitalism helps you accumulate wealth that can be transferred to your kids after you're dead. That's the good part. The other side of the coin is that it fosters envy. The type of envy that turns you into a perpetual money chaser.”

You may think you're working hard for yourself or your family, but you could be decepting yourself denying you're doing it for the envy of a neighbor or of a colleague. The Elephant in the Brain

Controlling your time is the highest dividend money pays.

3. Play a long term game

You need more than skill to sustain wealth. Skills can bring you the first moneys, but success will make you relentless.

4. Happiness

what made them happy was having meaningful relationships, spending quality time with family, and being part of something bigger than themselves. When you realize that several scientific researches support these points, you will want to take it seriously Books/drive

5. Don't aim to be rich, aim to be wealthy

“Wealth is the money you save and invest. It's the assets you own. And that's the thing people don't see. What most people see is the display of riches and anyone can appear to be rich. Matter of fact, many people who look rich are actually broke.”

“it doesn't make sense to impress people at your own expense. Focus on building wealth, not showcasing riches you can't afford.”

Conclusions

Investors must have no sunk cost. Join an investment club. What's the use of the money if you can't enjoy it?