Understanding money is mastering psychology - Deepstash
Lessons I’ve Learned From Studying Money for 10 Years

Lessons I’ve Learned From Studying Money for 10 Years

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Understanding money is mastering psychology

Understanding money is mastering psychology

Studying money has nothing to do with being rich and famous. It has more to do with psychology. 

Stock markets trade on sentiment. Humans buy assets and sell them too. You’ll be terrible with money if you don’t understand your own psychology. My psychology works best when I aim for the long term and take away most of the decision-making ability.

Learn about psychology and you can master your mind when it comes to money and the right strategy for you.

You can give all your money away and use it for good

Money is pointless if it’s not put towards something good.

The people who have the most money — like Warren Buffett and Bill Gates — give it all away and use it for good. They understand that leaving money to their family is a burden if they weren’t the ones who earnt it.

Warren Buffett

Be fearful when others are greedy and greedy when others are fearful.

WARREN BUFFETT

You will be tempted by bad investments

It doesn’t matter how smart you are. You will make bad investment decisions.

The companies that should make money don’t. And the companies run by a millennial who lied about their Harvard Education can go on to make millions. The facts, when it comes to investing, are easily distorted and unrelated to investment returns.

You know nothing; therefore, you have a chance when you act on that idea.

You can make money while you sleep

Set up systems and you can make money while you sleep. Systems make you income and automate money creation.

A business is a system; a blog is a system; a social media channel, like LinkedIn, is a system; an investment in the stock market is a system.

Who you are before money, matters

If you’re a baf person before you have money, that won’t change when you have money. Money amplifies who you are. If you won’t give a dollar when you have fifty, you definitely won’t give a dollar when you have millions.

Start early by giving a portion of your money away, therefore, telling your mind that you have enough and you are enough.

Money can devalue

Money can be printed out of thin air. Inflation can eat away at your savings. Look at the value of the USD over the last few decades on Google. You’ll be somewhat surprised.

You protect against money devaluing by investing in assets that retain their value over time: gold, stocks, property.

Money is best put to work

When you have money there are two options: invest or save.

Investing is putting your money to work. Put your money to work in the following ways:

  • Invest in yourself by learning new skills that generate money
  • Invest in businesses through a stock market index fund
  • Invest in books about finance so you understand money
  • Invest in humanity by giving a little to worthy causes.

Money can blow up your ego

Money can cause your ego to blow up and make you think everything you touch turns gold. Watch your ego as you make money. Audit your ego:

  • Do you think too highly of yourself?
  • Do you talk down to people because of your money?
  • Is your confidence slightly too high?
  • Do you preach or teach?
  • Do you use money to buy material possessions that prove you have money?

An out-of-control ego is the default outcome of having money. If you do nothing, your ego will get big and that won’t be good for you.

You can make money from your art

The way you make money online doesn’t matter and it’s forever changing.

When you release enough work online and commit for long enough, opportunities to make money will find their way to your inbox and surprise you. You can make money from your art.

You can never have enough money

The ultimate lie, when it comes to money, is that you’ll one day have enough — you won’t.

No amount of money is ever enough until you make one decision: you decide you are enough. When you are enough, your desire to have more money and endlessly work for money disappears.

Money is a reflection of value and when you value yourself, your view about money changes. 

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