Bradley's Reviews > The Psychology of Money
The Psychology of Money
by
by

This is very good mostly because it's very simple. Twenty common-sense ideas that are so absurdly obvious if you think about but are hardly ever engaged with, seriously, basically account for all successes and failures when it comes to money.
The more obvious points:
Professional traders are about as good at it as random non-professional investors.
Compound interest is an ungodly cheat mode.
Getting your head on right is much more important than anything else you could do.
Prepare for the idea that shit might get real, good or bad, and figure it into everything you do.
Honestly, it's a great book. You don't have to be super financially literate in order to BECOME financially literate.
And it shouldn't surprise anyone that the current system is designed to appear horribly complicated and chaotic in order to discourage all but the top tier, but it IS possible to simplify just about anything if you have the will.
Books like this are very valuable for that very reason.
The more obvious points:
Professional traders are about as good at it as random non-professional investors.
Compound interest is an ungodly cheat mode.
Getting your head on right is much more important than anything else you could do.
Prepare for the idea that shit might get real, good or bad, and figure it into everything you do.
Honestly, it's a great book. You don't have to be super financially literate in order to BECOME financially literate.
And it shouldn't surprise anyone that the current system is designed to appear horribly complicated and chaotic in order to discourage all but the top tier, but it IS possible to simplify just about anything if you have the will.
Books like this are very valuable for that very reason.
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Reading Progress
August 14, 2021
– Shelved
August 14, 2021
– Shelved as:
to-read
September 26, 2021
–
Started Reading
September 27, 2021
– Shelved as:
2021-shelf
September 27, 2021
– Shelved as:
non-fiction
September 27, 2021
– Shelved as:
psychology
September 27, 2021
–
Finished Reading
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However, this book is not about that at all. It's about how to set reasonable expectations in your investments. As for the psychology aspect -- and I went to school for this -- this book is applicable in more things than just money and investments.
It's about sustainability. Preventing self-harm. The power of compound interest.
All of these things are good for anyone. Early investment in yourself and where you want to end up is essential. If you have no money, that's fine. You can invest in people or knowledge or creativity and with practice it all becomes valuable with time.
In reality, the Psychology of Money is really about the psychology of good investment with a particular focus on tangibles.
The class warfare thing is no less valid, but one should not make the assumption that this particular book is like Rich Dad/Poor Dad bs.
It IS easy to get angry, however, so I know where you're coming from.
Then again, you might never get a job, and live off your parents fortune the rest of your life.
The point is, the rich get richer by being rich. It has nothing to do with how hard you work, or where you work. Working hard and climbing the corporate ladder may have worked in the early 20th century, if it ever did. It doesn't now. People start at the bottom, might make it to manager, or run a department; but you won't "climb the corporate ladder", get promoted all the way to the top.