‘The Psychology of Money’ by Morgan Housel

By Himanshu dev Sharma on June 2, 2021 • ( 0 )

“The ability to do what you want, when you want, with whom you want, for as long as you want to, pays the highest dividend that exists in finance”

I loved this quote by Morgan Housel in his bestselling book ‘The Psychology of Money’ as it summarizes the life and money goals in one powerful sentence.

The secret of becoming and staying wealthy is to use the power of ‘Compounding’. Compounding effect requires decades of patience and paying the price of being there.

The story of the Janitor Ronald Read who became a millionaire is worth mentioning here. The essence is not in being in a higher income group but in ‘Saving’ every month.

Saving money brings another habit of not getting into greed and aspiring for accumulating things that don’t add up any value in your life.

The author points out that not all of your investments will be producing significant returns but a few only. Some of them may go wrong and that’s all normal.

It is also very significant to know that people evolve and change their course of life. So essentially, everyone is playing a different money game with his/ her own goals and should not be compared with or taken a clue from.

There are many psychological reasons like upbringing and feelings that play a bigger role in our money-related decisions. And, as long as we are comfortable with our money-related decisions and can sleep peacefully, we are doing fine.

The author is very emphatical in his assertions that if you are lucky, you will be getting higher returns than the market by being at the right place and at the right time.

The book is spellbinding and keeps you hooked till the end. A must-read by everyone as money shapes our life-course.

Thanks, Morgan Housel for writing on such an important topic.

#psychologyofmoney #morganhousel #moneyhabits