As noted by Morgan Housel in his book "The Psychology of Money," the key to financial success is not knowledge but behavior. In contrast to the conventional mathematical view of money, Housel investigates 19 also demonstrated that individuals' approaches based on their own unique perspectives, feelings, and actions lead people to make decisions concerning finance.
The book provides insights into the psyche of money, enlightening readers to make rational and informed decisions in their finances, investments, and business ventures.
Housel is a partner of The Collaborative Fund and the bestselling author who wrote about "The Psychology of Money" and "Same as Ever." His books, translated into 50+ languages, have sold more than four million copies. Housel has earned numerous awards, including two Best in Business Awards and the New York Times Sidney Award. In 2022, MarketWatch recognized him among the 50 most influential market people. At present, Housel is serving on the board of directors at Markel.
One of the reviews available on LinkedIn is written by Jacki Zehner, who stressed that the premise Housel advocates to be highly attractive is because financial success relies more upon behavior than intelligence. Housel highlights the psychological aspects of 20 important flaws and biases that influence people's money choices. The reviewer lauded the book's neat organization, engaging storytelling, and effective debunking of money myths, especially in investing. It normalizes the challenges of managing money, encouraging self-reflection without judgment.
The author simplifies financial principles, emphasizing saving, investing early, and avoiding unnecessary spending. The review highlighted the book's discussion on controllable and uncontrollable factors in financial outcomes, addressing luck and risk. The reviewer's favorite section provides practical recommendations for making better financial decisions, promoting common-sense wisdom. The reviewer appreciated the book's focus on human nature, making it an engaging and motivating study of financial well-being.
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An article from Medium applauded "The Psychology of Money." The reviewer was initially skeptical but was won over by Housel's unique approach. Unlike typical finance gurus, Housel explores money through behavioral finance, delving into the psychological aspects of financial decisions. The review highlighted Housel's emphasis on the impact of behavior over intelligence, citing examples like the contrasting stories of a janitor and a Harvard MBA executive.
The book emphasizes individual differences, acknowledging diverse backgrounds, goals, and attitudes toward money. It introduces the concept of tails driving history and investing, underscoring the significance of small percentages in shaping outcomes. The importance of a positive batting average and lessons on luck, risk, compounding, fees, historical trends, and contentment are noted. The review concluded that the book offers a fresh perspective, providing a comprehensive understanding of the psychological aspects of money.
To conclude, "The Psychology of Money" is hailed as one of the best personal finance books, offering wisdom in a neat and crisp style. It emphasizes the role of behavior over intelligence in financial success, presenting 19 stories exploring people's unconventional money thinking.
Key takeaways include the difficulty of measuring luck and risk, the impact of social comparison, and the importance of compounding. Readers should delve into this engaging and practical book, noting its brevity compared with other lengthy finance reads. Quotes from the book underscore its valuable insights into investment, wealth, and decision-making.
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