10 Top Lessons From the Book “The Psychology Of Money”
A MUST MUST MUST MUST READ BOOK
1. No One’s Crazy
Your personal experiences with money make up maybe 0.00000001% of what’s happened in the world, but maybe 80% of how you think the world works. ( Take an example of today )
2. Luck & Risk
Luck and risk are both the reality that every outcome in life is guided by forces other than individual effort.
Luck is what happens when preparation meets opportunity.
3. Never Enough
Life isn’t any fun without a sense of enough. Happiness, as it’s said, is just results minus expectations.
There is no reason to risk what you have and need for what you don’t have and don’t need.
4. Confounding Compounding
If something compounds, if a little growth serves as the fuel for future growth
A small starting base can lead to results so extraordinary they seem to defy logic.
5. Getting Wealthy vs. Staying Wealthy
There are a million ways to get wealthy …
but there’s only one way to stay wealthy: some combination of frugality and paranoia.
Getting wealthy: take a lot of risks
Staying wealthy: you cannot take any risk.
The highest form of wealth is the ability to wake up every morning and say, ‘I can do whatever I want today.
The ability to do what you want, when you want, with who you want, for as long as you want, is priceless.
7. Man in the Car Paradox
No one is impressed with your possessions as much as you are. You need to keep this in mind.
8. Wealth is What You Don’t See
Spending money to show people how much money you have is the fastest way to have less money.
The only way to be wealthy is to not spend the money that you do have.
9. Save Money
Building wealth has little to do with your income or investment returns, and lots to do with your savings rate.
Independence, at any income level, is driven by your savings rate.
10. Tails, You Win
Long tails, the farthest ends of the distribution of outcomes, have a tremendous influence on finance
where a small number of events can account for the majority of outcomes.
Ebook Download Link: The Psychology Of Money
Let me know if you need such lessons from other books as well. I hope you will give this book a read.