This my book summary of The Psychology of Money by Morgan Housel. This episode is also available as a blog post at: https://jsilva.blog/2021/07/12/psychology-of-money-summary/
These are my favorite quotes from The Psychology of Money:
Your personal experiences with money makeup maybe 0.00000001% of what’s happened in the world but maybe 80% of how you think the world works.
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.
There is no reason to risk what you have and need for what you don’t have and don’t need.
The hardest financial skill is getting the goalpost to stop moving.
Money’s greatest intrinsic value, and this can’t be overstated, is its ability to give you control over your time.
Using your money to buy time and options has a lifestyle benefit few luxury goods can compete with.
When most people say they want to be a millionaire, what they really mean is “I want to spend a million dollars,” which is literally the opposite of being a millionaire.
The world is filled with people who look modest but are actually wealthy, and people who look rich who live at the razor’s edge of insolvency.
You can build wealth without a high income but have no chance of building wealth without a high savings rate.
At every stage of our lives, we make decisions that will profoundly influence the lives of the people we are going to become. -Daniel Gilbert
Thinking of market volatility as a fee, rather than a fine, is an important part of developing the kind of mindset that lets you stick around long enough for investment gains to work in your favor.
Most people, when confronted with something they don’t understand, do not realize they don’t understand it.