The Psychology of Money

(10 customer reviews)

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.

MORGAN HOUSEL is a partner at The Collaborative Fund and a former columnist at The Motley Fool and The Wall Street Journal. 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 for the Gerald Loeb Award for distinguished Business and Financial Journalism.

“Everyone should own a copy.”
—JAMES CLEAR
New York Times Bestselling Author of Atomic Habits

“Few people write about finance with the graceful clarity of Morgan Housel.”
—DANIEL H. PINK
#1 New York Times Bestselling Author of When, To Sell is Human, and Drive

“Housel’s observations often hit the daily double: they say things that haven’t been said before, and they make sense.”
—HOWARD MARKS
Co-founder and Co-chairman, Oaktree Capital Management

“That rare writer who can translate complex concepts into gripping, easy-to-digest narrative.”
—ANNIE DUKE
Author, Thinking in Bets

SKU: B08FHZ5L47 Category:

Description

Product details

  • ASIN

    :

    B08FHZ5L47
  • Publisher

    :

    Jaico Publishing House; 1st edition (18 September 2020)
  • Language

    :

    English
  • File size

    :

    2678 KB
  • Text-to-Speech

    :

    Enabled
  • Screen Reader

    :

    Supported
  • Enhanced typesetting

    :

    Enabled
  • X-Ray

    :

    Enabled
  • Word Wise

    :

    Enabled
  • Print length

    :

    252 pages

Additional information

ASIN ‏ : ‎

B08FHZ5L47

Publisher ‏ : ‎

Jaico Publishing House; 1st edition (18 September 2020)

Language ‏ : ‎

English

File size ‏ : ‎

2678 KB

Text-to-Speech ‏ : ‎

Enabled

Screen Reader ‏ : ‎

Supported

Enhanced typesetting ‏ : ‎

Enabled

X-Ray ‏ : ‎

Enabled

Word Wise ‏ : ‎

Enabled

Print length ‏ : ‎

252 pages

Best Sellers Rank:

#9 in Analysis & Strategy

Customer Reviews:

28,004 ratings

10 thoughts on “The Psychology of Money

  1. The premise of this book is that doing well with money has little to do with how smart you are and lot to do with how you behave. Very engaging and insightful. Few of the learning are as followsUsing your money to buy time and options has a lifestyle benefit few luxury goods can compete with.Spending money to show people how much money you have is the fastest way to have less money. Wealth is what you don’t see.There is difference between being rich and being wealthy. Rich is current income. You use this income to cover your basic expenses and desires. But wealth is hidden. It’s income not spent. It’s value lies in offering you options and flexibility.Compounding work best when you can give plan years or decades to grow. This is true for not only savings but careers and relationship. Endurance is key.There is no end to money. It is important to have the idea of having enough and then get satisfied. Having enough doesn’t mean too little

  2. One of the best most grounded books on money and investments I ever read. This book assumes that you are human and therefore likely to make errors of judgment and practical mistakes unlike some other books that probably assume that you are perfectly rational and logical about money. Great perspective along with being fairly easy to read and understand. Highly recommended. Congratulations to Morgan Housel this is a wonderful achievement.

  3. The expectations from this book were sky high. And, does it deliver. The key lessons on optimism and pessimism and long term aside – the two things that states with me:1. Expectations change even slower than reality. Everyone sees the world they have seen it before.2. Everyone plays the game of investment differently. You need to define your game.This is a fantastic book. It’s not a book about investments. It is a book about your mind, and mine and how it thinks about money, savings, expenditure and investments. And, it is brilliant. Pick it up now.

  4. If you read one book this year or in the next five years, just one book, let it be this one. Morgan wrote it from the heart. Its not so common sense, original and creative in its analyses and recommendations towards forging a path towards independence and financial freedom. Easily one of my best reads ever. Deserves to be read again and again and again….This book will join (and possibly overshadow) its illustrious forerunners in the pantheon of personal finance guides – The Richest Man in Babylon, Rich Dad Poor Dad.

  5. See guys this book is for those who have had a lot of Thier skin in the game of stock market and thought of creating wealth from it.First level of investor is the one who knows money can be made in the mkt, but doesn’t know how and starts to trade without any knowledge.Second level investor have made profit or loss on his capital and starts to find out where did he has gone wrong and starts learning about some basic concepts such as PE ratio.Third level of investor starts finding value in whatever the scrip he has been following and starts finding justification that it is costly or cheap and buy or sell them.Fourth level investor follows and checks if the price have gone up or not very often and loses faith if it doesn’t go up after he bought it, and if price doesn’t go up he sells it and looks for another one.in a short span of months. Again goes back to drawing board and finds what went wrong.Then come the whole talk of buffetology and starts to find companies like that and invest in them if he felt that it was cheap.But everyone forgets that buffet is buffet because of his principles and patience which helped him in compounding for very long time such as 70-80 years which very few do it. That’s when actually psychology matters and thats what Morgan tries to tell us in this book that more that analysis of the scrip, conviction that you calculated and the patience to hold it at least for several decades remains intact only then the wealth would be created or else you would be just a person among a crowd doing nothing but ordinary things in life. And explains that the world is actually big and we are just a blip in it. It gives us all a great humility and convinces us to be humble and show gratitude to others.

  6. I made a mistake in reading this book, I judged it as I have read books like thinking slow and fast and I compared this book with that book , so a comparison was formed by my mind. Later on after realising my biases, I reread again and in truth I got new insights. This book is exceptionally wonderful as it is one of its kind which teaches the importance of money and the market system through a different approach. Try to read it and it’s not going to disappoint you.

  7. The book dwells on human emotions and behaviour in realtion to money and money matters. The writing of Morgan Housel is lucid, short, simple and easy to read. There are 20 Chapters, each about 10 -15 pages and each chapter is informative and educative. There are no high end funda about investing and the emphasis is on the need to identify your comfort zone. Further, it also emphasis that volatality is a reality of the market and staying the course (admist all the volatality) and allowing your investment to compound is the best way to get the most out of your investments. On the subject of Behavioural Finance – this would easily hold a place along with Your Money and Your Brain of Jason Zweig and Thinnking Fast and Slow by Daniel Kahneman, as recommended reads. A word of praise about the publishers – Jaico Books, for bringing the Book at a very affordable price to Indian readers, without much time gap between its publication in UK.

  8. I have read many books on personal finance, investments, money etc. but I have not come across a book as interesting as “The Psychology of Money” by Morgan Housel. There are 20 chapters in the book and each one of them have their own valuable message. The book is interesting in many ways. First of all, it communicates many complex concepts in very simple terms. For instance, a concept like “Bubble” which is often discussed in the world of finance is described by Housel as “The formation of bubble isn’t so much about people irrationally participating in long term investing. They are about people somewhat rationally moving towards short-term trading to capture momentum that has been feeding on itself”. This is just one example. The book is full of pearls of wisdom. There is nothing that can match a statement like “The only way to win in a Las Vegas casino is to exit as soon as you enter”.Let me come to some of the most amazing insights that the book provides. The book talks about difference between getting wealthy and staying wealthy. The author says that many people acquire wealth but fail to preserve wealth and hence it is important to learn how to preserve wealth. As per Housel,” Preserving wealth requires humility, and the fear that what you have made can be taken away from you just as fast. It requires frugality and an acceptance that at least some of what you have made is attributable to luck, so past success cannot be relied upon to repeat indefinitely.” The author talks in detail about role of luck in investing at many places in the book. He quotes his conversation with Robert Schiller, winner of Nobel Prize in Economics, to whom he once asked, “What do you want to know about investing that we can’t know?”. In response to this question Schiller said, “The exact role of luck in successful investing”.The author keeps on surprising with his wonderful understanding of money in different chapters of the book. But the exclusive chapter on saving, which is chapter 10, has many interesting aspects about savings. Emphasizing significance of savings, the author says “The first idea- simple, but easy to overlook-is that building wealth has little to do with your income or investment returns, and lots to do with your savings rate.” He adds that you don’t need a specific reason to save. He has also mentioned something which is an eye opener. Past a certain level of income, what you need is just what sits below your ego. The author also highlights the need for knowing what is enough, when it comes to money.In brief, you must read this book irrespective of how much you understand about money. There is something for everybody in this book.

  9. It’s not just a money book, it’s a book about1. Our behaviour towards money.2. Our actions and the reason behind our specific actions when it comes to money.3. It tells us how our upbringing, the society where we belong and our circle impacts us.4. Luck and what luck is, when it comes to investing and making money……….This is one book that we should keep in our personal library and let our kids/parents read it accidentally. Then discuss the topics on dining table in a light mood.I consider myself lucky to get this book in my early 30s.

  10. This is a must read for the youngsters of today… or anyone who has still not started saving for the future. Morgan Housel beautifully communicates the idea of saving the money and how! Me, at 48, get inspired to the core to save more and spend less. He has the knack of explaining difficult stuff in such a simple language. 5 Stars from me. Take my word for it: you’ll love it!

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