Book review of Psychology of Money

Book review of Psychology of Money

Book review of Psychology of Money: Psychology of money is a self-help book written by Morgan Housel. Psychology of money was published in September, 2020. Here I'm going to do book review of Psychology of Money by Morgan Housel. 

"Morgan Housel" About the author

Morgan Housel is a partner at The Collaborative Fund and a former columnist at The Motley Fool and The Wall Street Journal. 

He is a two-time winner of the Best in Business Award from the Society of American Business Editors and Writers, winner of the New York Times Sidney Award, and a two-time finalist for the Gerald Loeb Award for Distinguished Business and Financial Journalism.

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Psychology of Money review

Timeless lessons on wealth, greed, and happiness doing well with money isn’t necessarily about what you know. It’s about how you behave. And behaviour is hard to teach, even to really smart people. 

How to manage money, invest it, and make business decisions are typically considered to involve a lot of mathematical calculations, where data and formulae tell us exactly what to do. But 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 unique view of the world, ego, pride, marketing, and odd incentives are scrambled together. In the psychology of money.

In less than 200 pages Morgan Housel succeeded through several short stories about money and business management to provide learned lessons. In this book the author also mentioned some quotes related to money and psychology like.. 

"Money’s greatest intrinsic value - and this can’t be overstated - is its ability to give you control over your time.”

“Using your money to buy time and options has a lifestyle benefit few luxury goods can compete with"

“But there’s only one way to stay wealthy: some combination of frugality and paranoia.”

“You are one person in a game with seven billion other people and infinite moving parts. The accidental impact of actions outside of your control can be more consequential than the ones you consciously take.”

The book uses plain English, easy to read and to understand. He exposed many myths and fake assumptions in the business world, especially the dilemma of luck vs talent.

It is fascinating to know for example that Bill Gates studied in the only high-school in the US that by luck had a computer in 1968, one in a million chance.

In this book the author 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 matters.

The chapter 19 is like a summary of major ideas but there are some interesting ideas to think about and we may agree or disagree with it:

Conclusion

This is a fantastic book. It's not a book about investments. It is a book about your mind, and mine and how it thinks about money, savings, expenditure and investments.

I hope you are satisfied with my book review of Psychology of Money by Morgan Housel, please feel free tu write in the comment section and share with your friends and family. thank you for your time. enjoy reading.