Phycology and Money
- Morgan Housel
 |
| Phycology and Money Book Review |
Book Name: "Phycology and Money
"
Author: Morgan Housel
Published: September 8, 2020
Page: 255
Personal rating: 4.5/5
Amazon Review: 71,646 global Reviews.
Genre of Book: Business/Finance
Phycology and Money book by Morgan Housel
Introduction
What do you do with the money you earn?
Focus on that.
Avoid paying attention to what other people do or will do
with their money.
According to the author,
What steps are you taking to earn money?
And how are your spending steps after earning money.
Moreover, you are becoming a rich or poor personality.
How much you are saving, investing and spending.
People don't depend on the formula of money in money
matters.
Different types of decisions are taken depending on
individual decisions.
And almost every person's decision about money is made in
the light of his own decision.
Many people make many wrong decisions about money.
It does not mean that they do not understand money.
We were born in a
different generation.
Being people in different environment,
Raised by parents with different views,
whose financial status is not the same,
The financial conditions of different countries are also
different and their luck plays a very big role with them.
Those born in poor families,
The fate of a person born in a rich family from
them,
Absolutely much better.
In investing money.
According to the
author, luck and risk are two brothers.
These two things are a truth that we must believe.
And both of these depend on a person's hard work.
In 1968 there were 303 million students,
14 million were in America but 300 students were only at
Lakeside School.
Where students could use computers,
And among those 300 lucky people was Bill Gates.
Luck and risk are everywhere,
But you have to understand the situation and take action.
In 1929 the impact of the depression on the special economy
was noticeable,
At that time, some have made crores of rupees in the stock
exchange by taking risks and some have lost everything.
Making money and keeping money are completely different
steps.
To raise money, you must take risks.
Whatever money you have, God can take it away at any time.
This fear or restraint will prevent you from abusing
yourself.
You have to admit that,
It is not your hard work that will make you rich.
Wealth is definitely the result of the great mercy of
Allah.
What we see before our eyes,
We calculate the wealth of others with that theory. We
don't even see other people's bank statements.
I make a big comment about others just by looking at a big
car or house.
But estimation of real property cannot be done in this way.
There are people like that.
Those who buy cars
worth crores of rupees through EMI to show off to others,
That means that person is really a rich person.?
There are some people whose financial condition is very
good.
Still want more of them.
This mindset has down many millionaires.
According to the author
“Ambition is good but greed is the cause of
unhappiness”
We often belittle
ourselves by socially comparing ourselves to others.
And because of that
greed, many people buy illegal ways,
As a result, they
have a lot of meaning,
Honor, wealth
despite being imprisoned in the iron wall.
In his new book, Phycology and Money, Morgan Housel
explores the role that psychology plays in our financial lives.
He argues that our emotions, biases, and beliefs influence
our financial decision-making more than we realize.
Housel provides readers with practical advice for
overcoming these psychological obstacles and becoming better investors.
He also shares stories and case studies from his own life and career to
illustrate his points.
If you're looking for a book that will change the way you
think about money, Phycology and Money is a must-read.
Themes and Takeaways
In his book, Phycology and Money, Morgan Housel explores
the psychological factors that influence our relationship with money.
He covers a wide range of topics, from the role of money in
our lives to the way we think about it and make decisions around it.
Housel offers readers a fresh perspective on money and its
impact on our happiness and well-being.
Here are some of the key themes and takeaways
from the book:
1. Money is a tool, not a goal.
2. Our relationship with money is shaped by our childhood
experiences and family attitudes towards money.
3. We tend to underestimate the role of luck in financial
success (and failure).
4. We place too much emphasis on short-term gains and not
enough on long-term security.
5. We often make bad financial decisions because we're
influenced by emotions like fear, greed, and regret.
6. We can improve our financial well-being by learning to
manage our money more effectively and making informed choices about spending
and saving.
How the Book is Organized
The book is organized into four sections:
(1) an introduction to psychology and money,
(2) how our brains are wired to think about money,
(3) common psychological biases that lead us to make bad
financial decisions, and
(4) how to use psychology to make better financial
decisions.
The Author's Background
Morgan Housel is a partner at the Collaborative Fund, a
venture capital firm.
He is also a columnist for The Wall Street Journal and The
Motley Fool.
Housel has a degree in finance and economics from the
University of Southern California.
Housel grew up in a middle-class family in the Seattle area
and was always interested in money and investing.
He started his first business when he was 11 years old,
mowing lawns in his neighborhood.
Housel eventually sold that business to his brother for
$1,000.
After college, Housel worked as an investment banker for a
few years before moving to San Francisco to work for a startup.
He then transitioned to writing about personal finance and
investing.
In his book, Phycology and Money, Housel shares his unique
perspective on how our psychology affects our relationship with money.
He explores topics such as why we spend money we don't
have, why we are bad at saving, and why we are often irrational when it comes
to investing.
Housel's goal is to help readers better understand their
own financial behavior so they can make smarter decisions with their money. If you're
looking for an insightful and entertaining read on personal finance
What Readers are Saying
"This book is a must read for anyone who wants to
understand the psychology of money. Housel does an excellent job of explaining
how our emotions and biases influence our financial decisions." -John D.
"A fascinating and thought-provoking look at the role that
psychology plays in our relationship with money. Housel offers insights and
stories that will change the way you think about your finances." -Karen H.
"If you want to understand why you make the financial
decisions you do, read this book. Housel's insights into the psychology of
money will help you make better choices with your money." -Bill S.
7.Conclusion
The book "Phycology and Money" by Morgan Housel is a great read for anyone interested in personal finance. T
he book covers a
wide range of topics,
from saving money to investing,
and does so in an
engaging and accessible way.
If you're looking for a book that will help you
better understand your finances and how to make the most of them,
I highly
recommend giving "Phycology and Money" a try.
Have you read “Phycology and Money”?
Did you like this book?
What did you like and what didn’t you like in it?
Let me know what you think in the comments below!
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