The Psychology of Money
Timeless lessons on wealth, greed, and happiness
Editorial Review
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.
Book Reviews
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In 2007, when the world was staring into the teeth of the biggest economic catastrophe in three generations, very few economists had any idea there was any trouble lurking on the horizon. Three years into the mess, economists now offer remedies that strike most people as frankly ridiculous. We are told
Today we live in a trying economic environment. Every day, popular financial advisors exhaust us to hunker down, play it safe, and protect ourselves from an uncertain future. To the voices who promote fear and doubt, understanding the psychology of wealth will provide you with balance, wisdom, and optimism.
There is a new reality out there–a new normal. What was once certain–that you would be able to retire comfortably; that you would pay for your kids’ education; that your home would appreciate in value–is no longer a sure thing. So much has changed on the financial landscape that it’s hard
Wisdom to Share
Some people are born into families that encourage education; others are against it. Some are born into flourishing economies encouraging of entrepreneurship; others are born into war and destitution. I want you to be successful, and I want you to earn it. But 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.
Money’s greatest intrinsic value—and this can’t be overstated—is its ability to give you control over your time.
Use money to gain control over your time, because not having control of your time is such a powerful and universal drag on happiness. The ability to do what you want, when you want, with who you want, for as long as you want to, pays the highest dividend that exists in finance.
Planning is important, but the most important part of every plan is to plan on the plan not going according to plan.
Napoleon’s definition of a military genius was, “The man who can do the average thing when all those around him are going crazy.
Be nicer and less flashy. No one is impressed with your possessions as much as you are. You might think you want a fancy car or a nice watch. But what you probably want is respect and admiration. And you’re more likely to gain those things through kindness and humility than horsepower and chrome.
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