The Psychology of Money is a book that you will not forget easily even after reading the final page. By picking it, I assumed it would be a usual finance book that discusses saving, investing and getting rich. However, as I happened to read every one of the chapters, I discovered that this book is so much more than that.
It teaches you the way to think about money, and in a very simple and human manner. Morgan Housel did not write the book to sound intelligent, he wrote it to make people see the light of the money without having to stress. And that is why I so related to it.
Among the most significant lessons that I received in the book is that money is not only about numbers, but also behavior. Two individuals may have the same salary but the results may be a lot different just because one has learned how to control emotions and the other one has not. I stopped to think when I read that.
I recall occasions where I behaved with money in an emotional way in my own life, the times when I ran into the store and purchased something everyone was purchasing or when I felt I was not getting enough to purchase. This book made me ponder over the way I handle money and how my behaviors help make my financial process.
Morgan Housel employs basic narratives to maintain the attention of the reader. One of the stories, which impressed me, was about a janitor who saved and quietly invested over a long period of time, and in the end grew extremely rich. At his side was a very learned individual and also had a nice job but spent aimlessly. In the end, the janitor was the one who had more money.
It made me smile when I read this as it reminded me that being wealthy is not about showing off, it is about being disciplined and patient. It provided me with some sort of motivation that I was not anticipating. I also understood that we can make anyone including myself rich, provided we learn how to remain patient and consistent.
The other concept that the book discusses is that of enough. The value of knowing when you have enough is one of the most effective principles of money. Most individuals end up in trouble due to lack of knowledge in knowing where to draw a line. They continue to pursue more despite the fact that they are already comfortable.
I thought about certain choices I have made before. I even craved more money at times when I did not need it but rather compared myself with other people. This section has made it seem as though Morgan Housel was addressing me. It taught me to curb my cravings, remain satisfied and develop gradually.
Also described in the book is the fact that money includes luck and risk. Two individuals may do all the right things but end up with different outcomes since life is not always predictable.
That idea made me relax a bit. Rather than taking the blame of all the wrong things or letting go of my temper when something goes wrong, I now know that life is a thing which happens. The thing is that it is important to learn something out of the experiences and to go on. It is such an easy lesson, and yet a powerful one.
I like best that the book is written in a conversational manner. I did not have a hard time grasping something. Morgan talks as a friend who is telling you some wisdom in life. It brought me at ease and boosted my morale. He inscribes such statements as, no one is crazy- this seems to remind us that people act variously with money due to the fact that we all have different backgrounds. I that found consoling and cool. It helped me to quit blaming myself on my old financial mistakes.
I liked also his focus on long-term thinking. He discusses the power of compounding, be it in investments, in habits, in patience, in consistency. When you begin to do little smart things on a daily basis, it will become big in the future.
This section of the book was very inspirational to me. It has made me begin to consider how I can develop bit by bit, rather than making a leap upon things.
The Psychology of Money is not a one time book; the book is a guide that one returns to. It imparts morals on humility, patience, gratitude and discipline. I was taught that the rich are silent; they do not have to speak.
You see what is rich, but you do not see what is wealthy, the savings, the discipline, the sacrifices, the wise decisions. This idea stayed in my heart.
This book will inspire you in case you happen to be an individual who desires to know more about money. It will guide you in case you want to become better with regards to your financial habits. And in case you desire a book to talk in plain language to you, it is the one.
Eventually, I was motivated, educated, and more assured of my financial future. In my opinion, any reader of this book will have new wisdom. Your age, your past or present economic status does not matter. The teachings within it are eternal. Indeed, as James Clear remarked, any person must have a copy.