THE PSYCHOLOGY OF MONEY-REVIEW

THE PSYCHOLOGY OF MONEY: Timeless lessons o  wealth, greed and happiness is written by MORGAN HOUSEL.

Morgan was a financial columnist and nowadays he is a partner at Collaborative Fund.

He writes about business, finances, psychology. You can read out his articles on his website. 

In this book as the name suggests Morgan talks about the psychology of money.

Let's talk about why you need to read this book:

1. If you are an investor, then you definitely need to read this. 

2. If you want to invest, then you are the right person to take this one. 

3. If you think only money is important then this is for you.

Now, there are some points from the book which I really found interesting and worth giving a read.

1. Most of the time, decisions people take for our money are crazy. But no one crazy right. Most of the decisions are taken on the dinner table but not how the worlds work. Some things seem crazy to you but for someone, they are not crazy.
2. Luck and risk are siblings. They are the reality that every outcome in life is guided by forces other than individual effort. There is no such thing called to be a good or bad decision. Every decision comes up with luck and risk. The world is big and complex so luck and risk play their roles in it.
3. Know what is enough for you. Set financial goals. Don’t just run after money. Many things are not worth taking a risk no matter how high the potential gain is.
4.If you want to be a good investor or want good enough returns, compounding is the key. Don’t interrupt your money and keep the compounding effect work.
5.There is a difference between getting wealthy and staying wealthy. If you want to stay wealthy, remember it is not because of the one decision but the number of decisions taken over the period of time. It is not necessarily about making good decisions all the time. But making decisions when things go wrong. Planning is more important. If Plan A fails then apply Plan B.
6.Be okay if things will not go good. You may be wrong half of the time but still can make fortune.
7.Controlling your time, freedom is the most valuable asset. Use the money to buy your time. Freedom gives you time for the things you actually want to do and these things are greater than anything else.
8. Don’t spend money to show. Wealth is not what you see but it is what you not see.
9. Save money. You don’t need a reason to save. Just save.

10. Try to be reasonable then baldly rational.
11. No, a single thing comes free. If you planning success, be ready to pay for it. It could be anything.
12. Remember that there is always room for error. So when you make a decision, there are chances it will not go as you have planned.
13. Long term planning for your financial goals isn’t easy. As you grow, you change, so does the goals. So think wisely before making any decision.
14. Don’t imitate people in financial decisions those have entirely different goals and life. Make your own decision on what works for you best.

REVIEW: This book will change your perspective about money. In this world where everyone is trying to imitate people and lose their own identity should definitely need to read this book. One lesson that I really like is, money-making is a game and it takes time, courage, desire, patience to play the game.  There are things which money can't buy. Parents and happiness are one of those. This is the reality check for all of us. It is short reading. Just go and grab this book.