Your personal experience with money make up maybe 0.00000001% of what's happened in the world, but maybe 80% of how you think the world works

No One's Crazy

Nothing is as good or as bad as it

Luck  Risk

There is no reason to risk what you have and need for what you don't have and don't need. <ol><li>The hardest financial skill is getting the goalpost to stop moving </li><li>Social comparison is the problem here</li><li>"Enough" is not too little </li><li>There are many things never worth risking, no matter the potential gain</li></ol>

Never Enough

$81.5 billion of Warren Buffett's $84.5 billion net worth came after his 65th birthday. Our minds are not built to handle such absurdities

Confounding Compound

Good investing is not necessarily about making good decisions. It's about consistently not screwing up

Getting Wealthy vs Staying Wealthy

You can be wrong half the time and still make a fortune

Tails, You Win

Controlling your time is the highest dividend money pays

Freedom

No one is impressed with your possessions as much as you are

Man In The Car Paradox

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

Wealth Is What You Don't See

The only factor you can control generates one of the only things that matters.

Save

Aiming to be mostly reasonable works better than trying to be coldly rational

Reasonable >

History is the study of change, ironically used as a map of the future

Surprise!

The most important part of every plan is planning on your plan not going according to

Room For Error

Long-term planning is harder than it seems because people's goals and desire change over time

You'll

Everything has a price, but not all prices appear

Nothing's Free

Beware taking financial cues from people playing a different game than you

You & Me

Optimism sounds like a sales pitch. Pessimism sounds like someone trying to help you

The Seduction Of Pessimism

Appealing fictions, and why stories are more powerful than statistics

When You'll Believe Anything

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.

books

Books

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.

Reasonable >

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Reasonable > Rational

DANIEL KAHNEMAN

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