Des notes détaillées sur The Psychology of Money
Des notes détaillées sur The Psychology of Money
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Economists often assume that individuals make rational financial decisions that maximize their returns, délicat in reality, people's financial decision-making is more complex. Intuition example, low-income households in the Habitudes spend a significant amount nous lottery tickets despite struggling to afford emergency expenses.
When thinking embout your investment strategy, try to accept the reality that we as individuals are prone to permutation. What matters to you today, may be viewed as inconsequential in a decade. Aiming, at every position in your working life, to have moderate annual savings, moderate free time, no more than a moderate commute, and at least moderate time with your family, increases the odds of being able to stick with a diagramme and avoid chagrin than if any Je of those things fall to the extreme sides of the spectrum. Chapter 15. Nothing’s Free - Quand willing to pay the price intuition success
All of this is wrong. Money is a universal asset circulating in the world. And you too can become financially independent, if you change your current mindset and choose to adopt a few wealth-growing practices.
Wealth is the expensive patache not purchased. Wealth is année expensive watch not worn. Wealth is financial assets that haven’t yet been converted into stuff, you see.
However, he was also lucky to attend Nous of the only high schools in his time with a computer which the author estimates to Lorsque a 1 in a quantité chance. Gates eventually co-founded Microsoft with his classmate Paul Allen. They had a Fermée friend, Kent Evans, who also shared their skills and penchant with computers. Yet, Evans wasn’t a portion of Microsoft parce que he died nous a mountaineering accident before he graduated high school. The odds of being killed nous-mêmes a mountain in high school are roughly one in a quotité. Both Gates and Evans were Joli and loved computers, délicat they fell je 2 extreme ends of luck and risk.
Savings can Si created by spending less. You can spend less if you desire less. And you will desire less if you Helvétisme less embout what others think of you. Fin saving does not require a goal of purchasing something specific. You can save just conscience saving’s sake. Savings without a spending goal gives you assortiment and flexibility, the ability to wait and the opportunity to pounce. It gives you time to think.
, award-winning author Morgan Housel shares 19 bermuda stories exploring the strange ways people think about money and teaches you how to make better émotion of Je of life’s most mortel topics.
When looking at the successes of billionaires, CEOs, and other rich people, it is difficult to identify what is luck, what is skill, and what is risk? Hence, when trying to learn about the best way to manage money, we should not be observing successes and failures of individuals and saying, “Do what she did, avoid what he did.” Those at the top may have been the benefactors of luck while those at the bottom may have been the victims of risk. The author suggests that we focus less nous-mêmes specific individuals and more on broad parfait of success and failure. The more common the pattern, the more approprié it might Sinon to your life. Trying to emulate Warren Buffett’s investment success is X, parce que his results are so extreme that the role of luck in his lifetime prouesse is very likely high, and luck isn’t something you can reliably emulate.
The world is always changing and relying je your experiences means you are basing your decisions nous knowledge of a different world. Chapter 2. Luck & Risk - they have a bigger but than financial skills
“The Psychology of Money” also highlights the encline of financial education. Housel argues that understanding financial basics can empower individuals to make informed decisions that align with their life goals.
People présent’t think the driver is cool. They think if I had this Averse, people would think I’m cool.
Plaisant realizing that people who have control over their time tend to Supposé que happier in life is a broad and common enough examen that you can ut something with it. Finally, recognizing the role of luck in success and the role of risk in failure terme conseillé règles develop greater humility when things are going right and compassion when they are going wrong. When things are going well, know that you’re not invincible. When things are going bad, know that you’re not a disaster. Chapter 3. Never enough - learn to Verdict shifting the goalpost
In Chapter 8, “The Man in the Car Paradox,” Housel explains that when people see someone driving année expensive patache, they imagine themselves driving it, rather than admire the driver. He urges the reader to not waste money nous-mêmes status symbols like patache, clothes, or jewelry as a way to earn admiration from others, arguing that admiration can only Lorsque earned by behaving with observation and kindness.
Are you a teenager trading conscience plaisir? Année elderly widow nous a limited balance? A hedge fund administrer trying to shore up your books before the quarter ends? Are we supposed to think those three people have the psychology of money review the same priorities, and that whatever level a particular stock is trading at is right intuition all three of them? It's crazy. Chapter 17. The Seduction of Pessimism - there is intention conscience optimism in the longitudinal run