I finished reading The Psychology of Money, so I like to share my top 3 messages from this book.
Financial success is not a hard science, It’s a soft skill, where how you behave is more important than what you know
Realize that not all success is due to hard work, and not all poverty is due to laziness. Keep this in mind when judging people, including yourself
Become OK with a lot of things going wrong. You can be wrong half the time and still make a fortune
The followings are all the lines, that didn’t make it to my top3.
- We’re just playing a different game. Don’t take random advice on the news
- You’re not a spreadsheet. You’re a person. A screwed up, emotional person
- Extraordinary important about managing money: the importance of room for error
- Admit that the world is a SURPRISE
- AT some point you have to choose between being happy or being “right”
- Nobody is CRAZY, we just see the world through a different lens
- Studying history makes you feel like you understand something. But until you’ve lived through it and personally felt its consequences, you may not understand it enough to change your behavior
- The further back in history you look, the more general your takeaways should be
- The hardest financial skill is getting the goalpost to stop moving
- The big takeaway from ice ages is that you don’t need tremendous force to create tremendous results.
- There are a million ways to get wealthy, and plenty of books on how to do so. But there is only one way to stay wealthy, some combination of frugality and paranoia
- Exercise is like being rich. You think, “I did the work and I now deserve to treat myself to a big meal” – Wealth is turning down that treat meal and actually burning net calories
- How much should you pay for google stock today? The answer depends on who YOU are
- The illusion of control is more persuasive than the reality of uncertainty
- Less ego, more wealth
