Why is everyone talking about The Psychology of Money?

Today, we will talk about The International Bestseller book The Psychology of Money. You might be thinking, "What is so special about this book?"

Well, it is definitely a remarkable book. Everyone should give it a try.

If you still haven't had a chance to read it, here is my short review of this book and the changes I brought upon myself after reading this book.

Introduction

The author of this book believes that doing well with money has little to do with how intelligent you are and a lot to do with how you behave.

Ordinary people with no financial education can be wealthy if they have some behavioural skills.

This fantastic book by Morgan Housel teaches us that money 💰 is not like Physics with rules and laws rather it is a Psychology with emotions 😊.

Why I selected this book 📗?

The best thing money can buy is financial freedom, and do you know 🤷‍♂️ the best part of being financially free?

It provides the freedom to only do the work you like with the people you like at the time you want for as long as you want, and this is what I wanted. Maybe not today, but someday for sure.

Another reason why I selected this book is that I wanted some insights into how I can manage my hard-earned money, and this book certainly fulfilled its purpose.

I'm very delighted I had the chance to devour this wonderful book.

Highlights 🎊

There are 20 chapters in the book, and each one has a brief yet captivating story. I found some chapters so powerful that I was awestruck.

Here are some of my favourite chapters:

1. Never Enough

   At a party given by a billionaire, Mr. X tells his buddy Mr. Y, that the host Mr. Z, had made more money in a single day than Mr. Y had earned from his wildly popular novel over its whole history. Mr. Y replies, “Yes, but I have something he will never have … enough.”

   Most people lack a sense of sufficiency. Even when they have a lot, they always want more.

   The author explains that there is little distinction between understanding Enough and Greed. In addition, the author discusses how to know when you've had enough.

   For me, this is one of the most important key lessons.

2. Luck & Risk

   The gist of this chapter is that nothing is as good or bad as it appears. If you believe your success is due to luck, you must also believe in luck's sibling risk.

   If you fail in some of your endeavours, forgive yourself, don't blame yourself too much and try to understand that risk was in your favour than luck. Besides, failures teach us more than successes, don't they?

3. Save money

   The author believes that building wealth has little to do with your income or investment returns, and a lot to do with your savings rate.

   We can save money by spending less and you can spend less if you desire less.

   Life is unpredictable, and saving can come in handy when you are in the worst financial situation of your life. Saving money can work wonders.

   Hence, make a habit of saving. You don't need a specific reason to save.

Changes 🌞 in my life

So, we are almost at the end and you might be thinking what changes did I bring upon myself after devouring this book? So here are a few:

• I formerly believed that because I didn't have enough money, I would never be able to save money. Never Enough, though, was the chapter that corrected my mistake. I started saving money from what I earned, which was the biggest and most significant change in my life.

• I signed up for a SIP (Systematic Investment Plan) and began making monthly investments.

• I currently maintain two bank accounts. One for my wife, and one for me. I deposit money into these two accounts on a monthly basis and will only use them in an emergency.

In a nutshell, I try to save as much as possible so that it will be useful when I am broke.

So this is what I think about this book. Do give it a try. You won't regret it.

Thanks 😊 a lot for reading. Hope to see you soon.