The Psychology of Money
In recent years, Morgan Housel’s The Psychology of Money has taken the world of investing and personal finance by storm. In this book, Morgan weaves together psychology, economic history, short stories, and many brilliant money quotes into a masterclass on how to think about your own personal finances in the context of your life in a straightforward, approachable style.
Some of Morgan’s best public writing from the Collaborative Fund blog (which you can find here: https://www.collaborativefund.com/blog/authors/morgan/) is included in the book, so readers who are already familiar with his work there will find a lot to enjoy.
Morgan mainly emphasizes the following ideas:
- The astounding power of compounding
- The difference between affluence and riches
- The value of frugality
- Having one’s own personal goalposts stop shifting
- Thinking in the long term
- Avoiding financial and personal disaster through careful risk management
I highly recommend this book to anyone looking to build or refine their understanding of personal finance, whether they are just starting out on their investing journey or are already bona fide Investors.
In a later post, I will explore in depth some of the main book concepts
