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 behavior 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, 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 Psychology of Money" is a best-selling book that explores the complex relationship between humans and money. Written by Morgan Housel, a former columnist for The Wall Street Journal and The Motley Fool, this book takes a unique approach to understanding the role of money in our lives.
Housel argues that personal finance is not just about numbers and spreadsheets, but is deeply rooted in our psychology and behaviors. He shares fascinating stories and anecdotes about how people think about money, make financial decisions, and experience the impact of their choices.
The book is divided into three parts. The first part explores how we think about money and the mental models we use to understand it. Housel explains how our biases, beliefs, and experiences shape our attitudes towards money and influence our financial decisions.
The second part of the book focuses on how we manage money and make investments. Housel argues that successful investing is not just about finding the right stocks or strategies, but about managing our emotions and avoiding common behavioral mistakes.
The final part of the book explores the role of luck and risk in our financial lives. Housel emphasizes that luck plays a significant role in our financial success, and we must learn to distinguish between luck and skill.
Overall, "The Psychology of Money" is a compelling and thought-provoking read that challenges readers to think about money in a new way. Housel's insights and perspectives provide a fresh and practical perspective on personal finance, and his engaging writing style makes the book accessible to readers of all backgrounds. Whether you are a seasoned investor or a newcomer to personal finance, this book is an excellent resource for understanding the complex relationship between money and human behavior.
About the author
Morgan Housel
Morgan Housel is a partner at The Collaborative Fund. 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 fo