The Psychology of Money 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.

In The Psychology of Money, award-winning author Morgan Housel 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 topics.

REVIEW

It has been quite some time since I’ve read this book. And it feels as though I’ve lost so much of what I got from it. So, in this review, I would like to acknowledge all those that I’ve enjoyed when I read this.

“Not all success is due to hard work, and not all poverty is due to laziness. Keep that in mind when judging people, including people.”

Probably, the most interesting thing about this book that I love the most is how it was not as textbook education as most of nonfiction/ self-help book. It was a shared story, in moments of people’s lives it showed us how to walk our feet in the financial journey.

Another thing is the simplicity of the book and how it is easily accessible to even the most financially ignorant person. Giving stories of other people as an example for reflection provided the readers a good grasp of what the situation might be and what possible outcome an action will have.

“Getting money is one thing keeping it is another.”

There is also an interesting reflection on why, despite our capacity, we cannot attain wealth—or, at least, a certain level of it.

This is an especially powerful and effective book that I would very much recommend to the younger, consumerism infested generation. It lays down a good foundation on financial literacy by having readers dive into real life stories. I find that people will see value in this short book and the highly accessible way that it proposed such a somewhat complicated idea to wrap your head around.

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