Å·±¦ÓéÀÖ

Bradley's Reviews > The Psychology of Money

The Psychology of Money by Morgan Housel
Rate this book
Clear rating

by
4213258
's review

it was amazing
bookshelves: 2021-shelf, non-fiction, psychology

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.
47 likes ·  âˆ� flag

Sign into Å·±¦ÓéÀÖ to see if any of your friends have read The Psychology of Money.
Sign In »

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

Comments Showing 1-2 of 2 (2 new)

dateDown arrow    newest »

message 1: by Kristy (new)

Kristy I'm not sure why they call this book the psychology of money since, from the reviews of I've read, it has nothing to do with psychology at all. It sounds like another "how to get money" book, and those are useless. The stock market is based on luck, and has little to do with what you do it don't know (unless insider trading). The other problem is; nobody goes from the middle or lower class to rich anymore (unless they win the lottery or get very lucky in music or acting. Unfortunately, they often end up in a great deal of debt because they don't understand how taxes work). People are wealthy because their parents are wealthy. They receive opportunities that others do not, such as going to private schools and expensive universities with other rich people. They know the rich friends and families of their rich parents; who then will help you later in life to get a great job, internship, or other opportunity. Often having rich parents allows you to travel before and/or after college: meeting more people your parents or relatives know, or their kids, with connections and money. When you need or want a job, and you may not want or need one, all these connections mean you don't have to start at the bottom. You begin with a high salary and benefits in all likelihood. You might could go to college first, work hard or slack off, your parents can always pay for good grades.
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.


Bradley Believe it or not, I agree with you. Looking at reality as it is, I can't argue your point, especially with how inflation is being wielded like a class-warfare weapon.

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.


back to top