I decided to re-read the book titled " The Psychology of Money" by Morgan Housel.
Morgan Housel
The book was inspiring as usual. So, I decided to share and remind us of the powerful and the wonderful lesson learned from the award winning book.
Lesson learned from the book "The Psychology of Money".
- Your most valuable asset it time.
The book talked about how time is very valuable to you. Advise made on maximising your time, make good financial decisions with and not wasting it for any reason.
As we all know money be spent and earned back, but time wasted cannot be gotten back. Time is absolutely finite.
- Savings and investments is very important.
The book talked about why it is very important to save and invest early.
And also it talks about the need to set long-term goals, the power of compounding profits and why it is required to build solid wealth and get your financial freedom.
- Your emotions can affect your financial decisions.
This part of the book dwelled more the psychological part of money, which is emotions and why it can affect our financial decisions.
When we understand how our emotions works and how it make us to take bad financial decisions, then we will know how to control it in a rational way.
- Risk and uncertainty is part of investment.
There is no investment that does not carry risks or uncertainties.
Instead of trying to eliminate risks totally in an investment, which is not possible, find a possible and easier way to manage your risk and always think of the long-term when you are investing.
- The importance of flexibility when it comes to money.
When it comes to the journey of financial success the roads are not smooth, there are many mistakes to be made.
The book talked about why it is important to learn from our mistakes, adapt easily to changes, adjust our strategies when needed and be flexible with our dealings with money.
- Financial habits.
The book also talk about why it is very necessary to build a strong financial habits.
Some of the financial habits are;
- saving
- investing
- budgeting
- and avoiding reckless spending...
All this habits can combine to make you financially success.
To be financially successful, you need to have a strong relationship with money, understand it's psychology and how it works.
This book is one of the best out there, if you haven't read it you are missing a lot, go get it.
That will be all for now...