The Psychology of Money was recommended by many people. It’s not a book that tells you which stocks to invest in; it tells you that you should invest and the earlier you start investing the better with a long term view in mind. Morgan emphasises the power of compounding and also to save even if you’re not saving for anything specific because that will eventually lead you to financial freedom. I think it’s insightful and easy to read with many important lessons.
The book emphasises on the point that your behaviour around money has more influence over how well yo do with your money. It has little to do with how smart you are.
Some of my favourite takeaways form this book:
– We might think someone is crazy for how they spend their money but it will make perfect sense to them. What works for them won’t necessarily work for you.
– There’s danger in never having enough.
– The importance of sticking with investment for the long run.
– Using money to control your time and do the things you want to do.
What I like about this book is that all the main takeaways are explained in a concise way that doesn’t bore you to death with infinite pages of explanation. They are short and to the point.
Morgan has divided the book into 20 simple chapters, each describing what he considers to be the most important and often counterintuitive features of the psychology of money.