The Psychology of Money: Timeless Lessons on Wealth, Greed, and Happiness Audible Audiobook – Unabridged
Audible Audiobook, Unabridged
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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.
Money - investing, personal finance, and business decisions - is typically taught as a math-based field, where data and formulas 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 own unique view of the world, ego, pride, marketing, and odd incentives are scrambled together.
In The Psychology of Money, award-winning author Morgan Housel 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 topics.
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|Listening Length||5 hours and 48 minutes|
|Audible.in Release Date||08 September 2020|
|Best Sellers Rank|| #2 in Audible Books & Originals (See Top 100 in Audible Books & Originals) |
#1 in Money Management
#1 in Investing & Trading
#4 in Analysis & Strategy
Reviewed in India on 31 May 2023
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Being from a third world country, My views regarding money were very much different.
Still,money is a subject which every person in this world sees as an object of wealth, greed & happiness. Hard work & dedication is one of the main principles to it.
What you get is how you think of it.
Here are some aspects I searched out to be useful and actionable :
> It’s never as good or bad as it seems in finance. Going out of your way to find Humility when things seem right and Forgiveness/Compassion when things go wrong is the way to find peace with money.
Respecting the power of money mixed with luck and risk will help you focus on the things that you can control.
To be honest -> I am still to find it, I take calculated steps to find peace with my money. I am a bit whimsical when it comes to money. Need to control my urges
> Saving money is the gap b/w your ego and your income. Wealth is something created by suppressing the urge to buy now; so as to have more stuff in future.
‘No matter how much you earn today, it won’t create wealth unless you discard the thought of how much fun you can have with your money today.’
Save, just save. You don’t need to a specific reason.
> Manage your money in a way that helps you sleep at night. It is different for different people. Some won’t sleep until they see higher returns on their money; for others it may be investing conservatively. To each their own.
> For every investor, the single most powerful thing is to increase the time horizon. It pushes results closer to what people deserve. We can be wrong half the time, and yet make a fortune. It’s OK to be have lots of things wrong, you’re human. Chillax.
> Using money to gain control over your time & the ability to do that gives you independence. What you want, when you want, how you want, with who you want, for as long as you want to, pays the highest dividend in money matters.
> Being nicer & less flashy with money helps infinitely. No one else’s as much impressed of your possessions as you are. What you most Want is Respect & Admiration, which can ONLY be achieved by Kindness & Humility, not horsepower and chrome.
> Defining the cost of success & paying it is obvious coz nothing worthwhile comes free. Uncertainty, doubt & regret are common costs of money world. We must view costs as fees, not fines. Getting one thing for another is a way of life in finance.
> Worship room for error is a conservative hedge that gives us endurance. It happens by the gap b/w what could happen in future versus what you think that should happen in future. Incentives are huge motivators in life. So, try to get more out of life.
> Avoid extreme ends of financial decisions at all costs helps us get over a feeling of regret as we evolve. All our goals & desires change over time.
In our childhood & youth, we crave to consume.
In our adulthood, we crave to consume and provide.
In our retirement zone, we try to consume again.
Consumption and Creation are parts of life.
Minimize the wastage of money.
> Conservative risks taking help us, it pays off in time. Being reasonable, not overly rational, helps the most in our financial decisions. They are mostly taken, not in boardrooms or on spreadsheets, but at the dining table, with family.
> Define the game you are playing & make sure your actions are not being influenced by others who’re playing a different game. Keeping the ball in your court is crucial.
Respect the mess coz smart & reasonable people can disagree on your decisions, as they vary in their thought process.
Reviewed in India 🇮🇳 on 31 May 2023
Reading this book and getting valuable knowledge is amazing. My question is that how this psychology works for a student who are in his 20s coming from a lower financial background works. Like i am a medical student and i want to be financially independent as soon as possible. So how should i start my journey without disturbing my studies. I have no skills but i can work hard as much as i can but i don’t know how to start and. From where ?
Love from INDIA
Top reviews from other countries
The book uses plain English, easy to read and to understand.
He exposed many myths and fake assumptions in the business world, especially the dilemma of luck vs. talent.
It is fascinating to know for example that Bill Gates studied in the only high-school in the US that by luck had a computer in 1968, one in a million chance.
The chapter 19 is like a summary of major ideas but there are some interesting ideas to think about and we may agree or disagree with it:
1. "You are one person in a game with 7 billion other people and infinite moving part", so we underestimate significantly the role of luck and world complexity.
2. "Saving is income minus ego" so be careful with your ego spending!
3 "Happiness is results minus expectations", so be careful with your expectations!
3. "Individual wealth is what you don't see, hidden" so big house, fancy car or Instagram photos are spends or debts of Individual, the visible part you see, not their wealth.
4. "Customer is always right" and "customers don't know what they want", both accepted business wisdom.
5. Napoleon’s definition of a military genius was, “The man who can do the average thing when all those around him are going crazy.”
Some points I would argue with, such as the medical and pharma model being great. Simply I would say, not a single disease has ever been cured ever and cancer rates have gone from 1 in 4 to 1 in 2.
The book is ironically quite pertinent to the Covid plandemic and Housel highlights how the world is often run by a few psychotic individuals such as Hitler. Today we have Gates and co.
Chapters are short and concise which stops you losing interest.
In any event, the title is an abuse of the word. The descriptions of occasionally observed behaviours are no more "psychology" than the Mungo Jerry line of "Life's for living - yeah! - that's our philosophy" is philosophy.
These useful tips and insights are padded out to book length with platitudes and excessive self-reference from the author.
I'm tempted towards 1*, but there is at least some value in the tips and insights given.
Vemos diariamente pessoas nos dizendo como ficar milionários fazendo investimentos. Morgan Housel dá uma dica muito importante: descubra qual jogo cada um está jogando e tente identificar se o jogo da pessoa que está te dando conselhos é diferente do seu.
Você vive fazendo o jogo de surfar no "momento" dos investimentos que hoje estão em alta e fazer uma "grana rápida" ? Você investe pensando em qual horizonte de tempo: meses, anos, década, ou no dia de hoje?
Como você lida com riscos?
As ações são voláteis, você é do tipo que tenta driblar esta volatilidade, comprar na alta e vender na baixa? Você tem dificuldade em lidar com as perdas, e assim que seu portfólio sofre uma queda, começa a tomar medidas emergenciais? Você investe de maneira que se tudo der errado acabou, ou vai ainda ter um plano e conseguir seguir em frente?
Talvez este livro seja para você. Housel prega uma mudança completa de mentalidade. O que ele busca trazer é uma forma de te dar autonomia, controle sobre o que fazer, quando fazer, como fazer, mantendo uma segurança apesar da inerente volatilidade dos investimentos.
Seguem duas outras lições que, num primeiro momento, foram mais marcantes para mim:
Riqueza vs. ser rico (rich people vs. wealthy people)
Você precisa aprender o que é o suficiente para você e a restringir seus gastos a partir deste ponto. Os estudos mostram, que quando atinge certo padrão de vida, gastar mais dinheiro te traz muito pouca felicidade a mais. É um mindset, mas é exatamente o oposto do que todo o marketing que somos bombardeados o tempo todo diz para a gente. É o oposto do que o Instagram fica tentando esfregar na nossa cara ao estimular constantes comparações. Para salvar um percentual significativo da sua renda com consistência e guardar ao longo dos anos e décadas, é essencial que você pare de aumentar seus gastos simplesmente porque aumentou sua renda e "pode" gastar mais.
Você possui seus vícios e manias, não é um robô que consegue disciplinadamente executar tudo que é bom para você sem qualquer falha ou recaída. Por isso, Housel fala sobre deixar espaço para coçar as coceiras. Assim como um nutricionista precisa incorporar um respiro em suas dietas (aquele domingo ou viagem quando você pode comer à vontade), você precisa entender aquela mania sua. É trocar de carro mais do que deveria? Trocar a mobília da casa? Trocar o celular todo ano? Tenha um espaço para isso e mantenha a mentalidade do "suficiente" para todo o resto.
Não faça a besteira de ler alguns reviews e achar que entendeu o que este livro ensina. Para mim o Housel está no mesmo nível dos ganhadores do Nobel D. Kahneman e R. Thaler. A diferença sendo que ao invés de realizar experimentos para ampliar o conhecimento, Housel é especialista em investigar o conhecimento disponível, juntar os pontos e tornar a informação acessível e acionável. O livro é carinho (chegamos a 70 reais em um ebook!), mas o investimento se paga muitas vezes. Caso queira algo gratuito você pode também ler o blog do Housel (o blog chama collaborativefund, procure no Google, porque a Amaozn não permite links aqui). Eu sou um grande fã e este é, sem dúvida, seu melhor trabalho até hoje. Uma verdadeira obra de arte.
There was a little bit of psychology, and some interesting anecdotes, and it was quite a good book, but not what I was expecting or looking for.