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Just finished reading #ThyPsychologyOfMoney by @morganhousel
Here& #39;s my interpretation from those 20 chapters of wisdom. Hope it helps you
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Here& #39;s my interpretation from those 20 chapters of wisdom. Hope it helps you
A #Thread
A #Thread" title="Just finished reading #ThyPsychologyOfMoney by @morganhouselHere& #39;s my interpretation from those 20 chapters of wisdom. Hope it helps you https://abs.twimg.com/emoji/v2/... draggable="false" alt="đ" title="LĂ€chelndes Gesicht mit lĂ€chelnden Augen" aria-label="Emoji: LĂ€chelndes Gesicht mit lĂ€chelnden Augen">A #Thread" class="img-responsive" style="max-width:100%;"/>
Chapter # 1
What we think about money and finance is mostly reflection of our own personal experience with it.
It is mostly driven by emotions than real facts.
They are based on our personal narratives which has or hasn& #39;t worked for us in the past.
What we think about money and finance is mostly reflection of our own personal experience with it.
It is mostly driven by emotions than real facts.
They are based on our personal narratives which has or hasn& #39;t worked for us in the past.
Chapter # 2
There is some role of luck and risk in people& #39;s success or failures.
Several outcomes in life are guided more by risk and luck than our individual efforts.
Focus less on individuals and more on broad patterns.
Nothing is as good or as bad as it seems.
There is some role of luck and risk in people& #39;s success or failures.
Several outcomes in life are guided more by risk and luck than our individual efforts.
Focus less on individuals and more on broad patterns.
Nothing is as good or as bad as it seems.
Chapter # 3
Don& #39;t risk what you have and need for what you don& #39;t have and don& #39;t need. Don& #39;t risk what is important for you for something not important.
- Warren Buffett
Don& #39;t keep on changing your goalpost and learn to be content with what you have.
Don& #39;t gamble your life
Don& #39;t risk what you have and need for what you don& #39;t have and don& #39;t need. Don& #39;t risk what is important for you for something not important.
- Warren Buffett
Don& #39;t keep on changing your goalpost and learn to be content with what you have.
Don& #39;t gamble your life
Chapter # 4
If a little growth serves as fuel for future growth, the final results can be astonishing due to compounding magic.
Good investing is not to get highest returns once. It& #39;s about earning decent returns for a very long period of time and let compounding happen.
If a little growth serves as fuel for future growth, the final results can be astonishing due to compounding magic.
Good investing is not to get highest returns once. It& #39;s about earning decent returns for a very long period of time and let compounding happen.
Chapter # 5
There are several ways to be wealthy but there& #39;s only one way to stay healthy i.e. be frugal.
Try to be financially unbreakable.
Don& #39;t be in great rush to become wealthy fast. You might loose what you already got.
There are several ways to be wealthy but there& #39;s only one way to stay healthy i.e. be frugal.
Try to be financially unbreakable.
Don& #39;t be in great rush to become wealthy fast. You might loose what you already got.
Chapter # 6
Genius is being able to do average things when people around you are going crazy.
Pilot& #39;s jobs are hours of boredom punctuated by moments of terror.
If you are best in business, you will be right 6 out of 10 times.
Can be wrong half of time & still make a fortune
Genius is being able to do average things when people around you are going crazy.
Pilot& #39;s jobs are hours of boredom punctuated by moments of terror.
If you are best in business, you will be right 6 out of 10 times.
Can be wrong half of time & still make a fortune
Chapter # 7
The highest form of wealth is to wake up in morning and say, "I can do whatever I want today."
Money gives control over your time and this gives you happiness
6 months emergency expenses means less scared of your boss
Your kids want you much more than your money.
The highest form of wealth is to wake up in morning and say, "I can do whatever I want today."
Money gives control over your time and this gives you happiness
6 months emergency expenses means less scared of your boss
Your kids want you much more than your money.
Chapter # 8
People will admire you more for your humility and kindness than what you try to show through flashy lifestyle.
People think that they will be admired more if they own fancy cars and huge houses, which is not right.
Be kind, humane and generous to get respected.
People will admire you more for your humility and kindness than what you try to show through flashy lifestyle.
People think that they will be admired more if they own fancy cars and huge houses, which is not right.
Be kind, humane and generous to get respected.
Chapter # 9
We should not just try to look wealthy but try to be wealthy.
Wealth offers your options, flexibility and growth.
Wealth is ability to afford things and still not buying if don& #39;t add value to your life.
We should not just try to look wealthy but try to be wealthy.
Wealth offers your options, flexibility and growth.
Wealth is ability to afford things and still not buying if don& #39;t add value to your life.
Chapter # 10
Wealth creation has more to do with habit of saving than anything else.
Desire less, Spend less and care less of what others think of you.
People& #39;s ability to save is in their control based on what they desire.
Money is more related to behavior than finance
Wealth creation has more to do with habit of saving than anything else.
Desire less, Spend less and care less of what others think of you.
People& #39;s ability to save is in their control based on what they desire.
Money is more related to behavior than finance
Chapter # 11
Because humans are not machines, we don& #39;t always need to be mathematically right.
When making money decisions, be more reasonable than rational.
Because humans are not machines, we don& #39;t always need to be mathematically right.
When making money decisions, be more reasonable than rational.
Chapter # 12
Don& #39;t rely too much on historical data when making financial decisions as what has not happened before may happen in future.
The world is changing like never before hence be ready to expect the unexpected.
Don& #39;t rely too much on historical data when making financial decisions as what has not happened before may happen in future.
The world is changing like never before hence be ready to expect the unexpected.
Chapter # 13
Plan as if your plan may fail
When investing, do not underestimate the purpose of margin of safety as the reality can be much more worse than you planned originally.
Plan as if your plan may fail
When investing, do not underestimate the purpose of margin of safety as the reality can be much more worse than you planned originally.
Chapter # 14
We should accept the reality of changing our minds.
In the long run, we experience and learn more things, which changes our views.
Financial goeals when you knew less needs to be changed if required.
We should accept the reality of changing our minds.
In the long run, we experience and learn more things, which changes our views.
Financial goeals when you knew less needs to be changed if required.
Chapter # 15
Every job looks easy when you are not the one doing it.
There is a cost to everything, in markets that fee is cost of learning.
Mostly the volatility is the fee you pay for your returns.
Every job looks easy when you are not the one doing it.
There is a cost to everything, in markets that fee is cost of learning.
Mostly the volatility is the fee you pay for your returns.
Chapter # 16
Do not try to copy anyone as everyone has different risk appetite, financial goals and skills.
Work on your own strategy which suits your own personality and skillset.
Do not try to copy anyone as everyone has different risk appetite, financial goals and skills.
Work on your own strategy which suits your own personality and skillset.
Chapter # 17
People get influenced more by negativity than positivity.
Pessimists are considered smarter and eventually get more attention.
Optimists don& #39;t think that everything will be great but they know that odds of good outcome will be in their favor in long run.
People get influenced more by negativity than positivity.
Pessimists are considered smarter and eventually get more attention.
Optimists don& #39;t think that everything will be great but they know that odds of good outcome will be in their favor in long run.
Chapter # 18
The more you want something to be true, the more likely you are to believe a story that overestimates the odds of it being true.
Not everyone knows everything in the world however we form our own narratives to fill the gaps in our knowledge.
The more you want something to be true, the more likely you are to believe a story that overestimates the odds of it being true.
Not everyone knows everything in the world however we form our own narratives to fill the gaps in our knowledge.
Chapter # 19 - All together now
Have less Ego in life & be less flashy
Increasing your time horizon will give you biggest edge over others
Be half times wrong and still make a fortune
Save Save and Save without any reason
There& #39;s a cost of success
Worship room for error
Have less Ego in life & be less flashy
Increasing your time horizon will give you biggest edge over others
Be half times wrong and still make a fortune
Save Save and Save without any reason
There& #39;s a cost of success
Worship room for error
Chapter # 20 - Confessions
Risk is good as it pays off over time.
You may not become the best investor of the world however avoid to be the worst in the world.
Investing through index funds are safest way to invest in equity.
Risk is good as it pays off over time.
You may not become the best investor of the world however avoid to be the worst in the world.
Investing through index funds are safest way to invest in equity.
If you liked the summary, request you to go through this book for more such insights and valuable money lessons.
I highly recommend this book to learn some basic human financial behavior adpects.
Happy reading and learning to youhttps://abs.twimg.com/emoji/v2/... draggable="false" alt="đ" title="Folded hands" aria-label="Emoji: Folded hands">
I highly recommend this book to learn some basic human financial behavior adpects.
Happy reading and learning to you
