Using your money to buy time and options has a lifestyle benefit few luxury goods can compete with

More than I want big returns, I want to be financially unbreakable

Saving is the gap between your ego and your income

Warren Buffett’s net worth is $84.5 billion. Of that, $84.2 billion was accumulated after his 50th birthday

Modern capitalism is a pro at two things: generating wealth and generating envy

You can build wealth without a high income, but have no chance of building wealth without a high savings rate

Spending money to show people how much money you have is the fastest way to have less money

It gets dangerous when the taste of having more—more money, more power, more prestige— increases ambition faster than satisfactionYou feel as if you’re falling behind, and the only way to catch up is to take greater and greater amounts of risk

Doing well with money has a little to do with how smart you are and a lot to do with how you behave

“Savings can be created by spending less.You can spend less if you desire less.And you will desire less if you care less about what others think of you.Money relies more on psychology thanfinance

Everything has a price, but not all prices appear on labels

A good rule of thumb for a lot of things in life is that everything that can break will eventually break

Arrange your financial life in a way that a bad investment here and a missed financial goal there won’t wipe you out so you can keep playing until the odds fall in your favor

There's only one way to stay wealthy: some combination of frugality and paranoia. And that's a topic we don't discuss enough.

Happiness is just results minus expectations

15 Powerful Financial Lessons From the Book "The Psychology of Money"

Doing well with money isn’t necessarily about what you know. It’s about how you behave. And behavior is hard to teach, even to really smart people. Money—investing, personal finance, and business decisions—is typically taught as a math-based field, where data and formulas tell us exactly what to do. But in the real world people don’t make financial decisions on a spreadsheet. They make them at the dinner table, or in a meeting room, where personal history, your own unique view of the world, ego, pride, marketing, and odd incentives are scrambled together. In The Psychology of Money, award-winning author Morgan Housel shares 19 short stories exploring the strange ways people think about money and teaches you how to make better sense of one of life’s most important topics.

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Money & Investments

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Doing well with money isn’t necessarily about what you know. It’s about how you behave. And behavior is hard to teach, even to really smart people. Money—investing, personal finance, and business decisions—is typically taught as a math-based field, where data and formulas tell us exactly what to do. But in the real world people don’t make financial decisions on a spreadsheet. They make them at the dinner table, or in a meeting room, where personal history, your own unique view of the world, ego, pride, marketing, and odd incentives are scrambled together. In The Psychology of Money, award-winning author Morgan Housel shares 19 short stories exploring the strange ways people think about money and teaches you how to make better sense of one of life’s most important topics.

Morgan Housel is a partner at The Collaborative Fund. He is a two-time winner of the Best in Business Award from the Society of American Business Editors and Writers, winner of the New York Times Sidney Award, and a two-time finalist for the Gerald Loeb Award for Distinguished Business and Financial Journalism. He lives in Seattle with his wife and two kids.

THE PSYCHOLOGY OF MONEY

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