Doing well with money has little to do with how smart you are and a lot to do with how you behave. And behavior is hard to teach.A genius who loses control of their emotions can be a financial disaster. The opposite is also true.

The Greatest Show on Earth.

Our personal experiences with money are very little of what happened in the world and maybe 80% of how we think the world works.We all make decisions based on our own unique experiences that seem to make sense to us in a given moment.So no one is crazy.

No One's Crazy

Luck & Risk are siblings. They are both the reality that every outcome in life is guided by forces other than individual effort.Focus less on specific individuals and more on broad patterns. Nothing is as good or bad as it seems.

Luck & Risk

There is no reason to risk what you have and need for what you don't have and don't need.The hardest financial skill is getting the goalpost to stop moving. (Happiness = Results - Expectations)Social comparison is the problem here.The ceiling of social comparison is so high that virtually no one will ever hit it.

Never Enough

"Enough" is not too little but it is realizing that an insatiable appetite for more will push you to the point of regret.There are many things never worth risking, no matter the potential gain:- Family & Friends- Reputation- Freedom- Being loved by those who you want to love you- Happinessall are invaluable. Keeping these things is knowing when it's time to stop taking risks.

Lessons from one field can teach us something about unrelated fields.Take the billion-year history of ice ages, and the lesson about growing our money - "It is not necessarily the amount of snow that causes ice sheets but the snow, however little, lasts".It's about earning pretty good returns that you can stick with and which can be repeated for the longest period of time.That's when compounding runs wild.A small starting base can lead to results so extraordinary they seem to defy logic.

Confounding Compounding

Good investing isn't about making good decisions it's about consistently not screwing up.The ability to stay around for a long time without wiping out or being forced to give up is what makes the biggest difference.

Getting Wealth v/s Staying Wealthy

The great investors bought vast quantities of art, a subset of the collections turned out to be great investments, and they were held for a long period of time to allow the portfolio return to converge upon the return of the best elements in the portfolio.It's not whether you're right or wrong that's important but how much money you make when you are right and how much you lose when you're wrong.Investing genius: A person who can do the average things when all those around them are going crazy.

Tails, You Win!

The ability to do what you want, when you want, with whom you want, for as long as you want, is priceless.It is the highest dividend money pays.Reactance: Doing something you love on a schedule you can't control can feel the same as doing something you hate.

Freedom

When we see someone driving a luxury car, people rarely think, "Wow, the guy driving the car is cool."Instead, "Wow, if I had that car people would think I'm cool."No one is impressed with your possession as much as you're.

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 financial assets that haven't yet been converted into the stuff you see. It's income not spent.Rich is a current income.

Wealth is What You Don't See

Building wealth has little to do with your income or investment returns and a lot with your saving rate.Wealth is just the accumulated leftovers after you spend what you take in.You don't need a specific reason to save.

Save Money

Aiming to be mostly reasonable works better than trying to be coldly rational. We are humans.Reasonable is more realistic and you have a better chance of sticking with it for the long run, which is what matters most when managing money.

Reasonable >> Rational

History is the study of change, ironically used as the map of the future.We can't just make the decisions just by looking at history. Life is full of unexpected surprises.

Surprise

"Things that had never happened before happen all the time."

The most important part of every plan is planning on your plan not going according to plan. The odds are in your favor when playing Rusian Roulette. But the downside is not worth the potential upside.

Room For Error

Long-term planning is harder than it seems because people's goals and desires change over time.Compounding works best when you can give a plan years or decades to grow.That is true for careers and relationships as well.

You'll Change

Every job looks easy when you are not the one doing it.Market returns are never free and never will be. They demand you a price. But if you view the admission fee as a fine you'll never enjoy the magic.

Nothings Free

Everything has a price, not all appear on labels.

"Beware of taking financial cues from people playing a different game than you are."

You and Me

Optimism sounds like a sales pitch. Pessimism sounds like someone trying to help you.Pessimism is so seductive because it reduces expectations, narrowing the gap b/w possible outcomes and outcomes you feel great about.

Seduction of Pessimism

Stories are more powerful than statistics.There are many things in life that we think are true because we desperately want them to be true.Everyone has an incomplete view of the world. But we form a complete narrative to fill in the gaps.

When You'll Believe Anything

This book is one of the best books for the financial knowledge you'll read among the others. Get to know the real Psychology of Money by reading this.

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.

The Psychology of Money

The alarm you set sleepily at 12 at night is ringing loudly at 7 in the morning. You have to leave your warm bed, eat something and get dressed. Now, leaving your cozy house is even harder than all of that hassle. Well, you do it and suddenly it's 5 pm. You have to go back home rest a bit and get ready for the next day. Such fun, right? And for what? Just to be able to pay your credit card statement in full for the next month.

How Can You Buy Yourself Out Of Slavery

Now, here is a question: Do you think that this system has ever changed in the world for the past five thousand years? Get up in the morning, work for your masters. Pay off your debt to your masters with interest and repeat again all over. Can you spot any difference between the slavery of Babylon five thousand years ago and the modern slavery of today? I will try to answer this question with the success story of a Babylonian named Dabasir who lived five thousand years ago. A story about a man who was able to achieve financial freedom...

Dabasir - From Slavery To A World-Know Trader

Long story short; Nothing has changed in five thousand years. This is both a good and a bad thing. Good, because the ways out of slavery haven't changed either. But bad, because some of us just can't get out of this loop. Thankfully, Dabasir engraved some steps that can be taken on the path to financial freedom on a clay tablets five thousand years ago and whose accuracy has not changed for generations.

It costs nothing to ask wise advice from a good friend

You can guess how Dabasir became a slave. Think about how you got your first credit card. Why did you apply? Because sometimes you spend more than you earn. Now you can have almost everything you want in installments with your credit cards. In addition to this, maybe your income is increasing from year to year, you get promotions and you go from success to success in your career. Do you notice anything? The more you earn, the more you spend. This is how Dabasir became a slave; he spent more than he earned, got into debt, and he could not pay his debts.

Spending More Than You Earn

But Dabasir was determined. He had the spirit of a free man, and he had to be free. After being a slave for a while in Syria, he fled and came to Babylon to face his debts. He had three goals:<ol><li> Separating one-tenth of his earnings,</li><li>Meeting his basic needs with the seven out of tenth,</li><li>Paying his debts in installments with the remaining.</li></ol> He became a camel trader and paid for his debts in a long time and got his freedom. And that's it. What did you expect? A Dabasir who ran from battle to battle and became rich with spoils? He was a simple slave like us.

The Three Statements

Simple and easy to understand tips to save money and manage your wealth.

The Richest Man in the Babylon. This book deals with the personal success of each of us. Success means results coming from our efforts and ability. A good preparation is the key to our success. So keep a part of what you earn with yourself. From the benefits of saving to the essentials of getting rich, this collection of educative Babylonian fables gives you timeless information on how to make money. It guides to getting rich, attracting good fortune and the five golden rules. As a guide to understanding hydro-wealth and a powerhouse has been inspiring readers for generations. You know that Babylon became the richest city of the ancient civilization because it had reserved part of its earnings for the future. Thats why citizens got everything they wanted. How can you always keep your wallet heavy, the author has taught very beautifully on this topic.

Interesting

The Richest Man In Babylon

Mentally replace the phrase “the metaverse” in a sentence with “cyberspace.” The Metaverse is a combination of multiple elements of technology, including virtual reality, augmented reality and video where users "live" within a digital universeRead more below to learn about the investment opportunities you can explore to make money

What is The Metaverse?

Event space is a great opportunity for booking short-term rentals on your metaverse property. If your structure is large enough to accommodate events like virtual concerts or shows, you'll be able to attract musicians and other performers who are looking for a new way to reach audiences that may have not been willing or able to attend events in person. Make sure to provide retail space for event-related swag sales. Who doesn't want to pick up a (virtual) band T-shirt on the way out of the venue?

1. Metaverse event space can bring in a diverse crowd

Long live the billboard, the giant roadside advertisement that never seems to die. Metaverse platforms also have roads and traffic, though you can think of it more as pedestrian traffic. Even so, billboards are valuable platforms to reach diverse audiences who occupy and visit the metaverse. Just like with real-life billboards, your income stream comes from renting the space out to companies who want to share their messages with passersby.Look to both real-life and virtual companies as potential billboard customers. After you all, just because someone is active in the metaverse doesn't mean th<warningtag>ey know there's a new virtual shop by a big brand going into an area they don't regularly frequent.</warningtag>

2. Virtual billboards are just as useful as real ones

Forget amusement parks - they can't hold a candle to what's possible in the metaverse. Just because there's no gravity (or physical bodies) doesn't mean that a virtual experience can't be interesting and fun for visitors. You'll need ample space and a huge imagination (or several on the payroll) to create something that will generate ticket sales, but the whole point of the metaverse is social experiences, and this is no different.Bonus points for being able to update, change, or remodel your experience space for pennies on the dollar compared to a real-life amusement park or similar facility.

3. Experiences can be totally wild in the metaverse

Just because it's not the real world doesn't mean that people aren't looking for stuff to populate their virtual life. Retail has a strong place in the metaverse, and brands will need plenty of room for showrooms and shops. Even small brands may find cult followings in the metaverse, so don't be shy about reaching out to potential tenants when setting up your well-planned rental spaces for commercial businesses.Many brands have already seen great success with promoting and selling NFT versions of their real-world products to metaverse denizens. Custom sneakers, high-end bags and so on.

4. Traditional malls and shopping centers are still needed

With workplace returns continuing to be pushed out indefinitely, companies are looking for ways to bring their teams together in communal space. Rather than relying on dedicated metaverse platforms for this job, metaverse office space on bigger platforms can add another element of the real world into the virtual one.Don't forget that virtual architects, designers, Realtors, and others vital to the development of the metaverse may also seek spaces within the platforms where they work. These people already exist and are reaching into the virtual world to make a living in the real one.

5. Office space is just as useful in the virtual world

<ul><li>The metaverse isn’t a monolith; it’s a vibrant place with lots of different needs. </li><li>Real estate investors in the metaverse will find that there will be a need for many different classes of real estate structures. </li><li>As always, choosing the right structure for the lot is the most difficult part. </li> </ul>

Key Points

Want to learn where to invest in the Metaverse? Read below - two words pop out to me - real estate 🏡 

Basic lots are just the beginning when it comes to investing in the metaverse. Here are other ways you can develop there for long-term returns.

Metaverse 

5 Interesting Ways To Invest in the Metaverse | The Motley Fool

The study found that consumers experiencing social exclusion are more likely to make high risk investments. This effect is moderated by consumers' level of mental budgeting such that at high levels of mental budgeting the effect of social exclusion on investment choice is attenuated. The study further finds that the moderating effect of mental budgeting is mediated by pain of payment.The findings suggest that policymakers can reduce unduly risky personal investment behavior by triggering mental budgeting thoughts using methods such as advertising and mention of transaction fees.

Summary

<ul><li>a state of physical/emotional isolation involving feelings of loneliness due to being left out, ignored or ostracised by others</li><li>leads to anti-social behaviour</li></ul>influences:<ul><li>preference for distinctive products: psychological emptiness/ unsatisfactory interpersonal relationships intensify the desire for material possessions and conspicuous consumption</li><li>risk-taking behaviour: present-day bias, less conservative investment behaviour</li><li>inclination towards brand/ product switching (self-efficacy, sense of control)</li></ul> <ul><li>financial literacy is lower in developing countries; lowest w.r.t. risk diversification</li></ul>

Social exclusion

<ul><li>incl. mental budgeting (separation of monetary income into economic categories), labelling of income and assets, hedonic framing (evaluation of gains and loss combinations)</li><li>violates the fungibility assumption of money: different propensities to use money depending on the source</li><li>hampered by credit card use: decouples costs and benefits by facilitating mixing of purchases among budgeted categories and increasing temporal distance between purchases and payments (payment delayed until credit card bill is due)</li></ul>

Mental Accounting 

<ul><li>prospect theory: loss perception decreased in consumers in a low state of mental budgeting</li><li>psychological myopia: tendency to focus on immediately relevant information (e.g., transaction fees) while ignoring relevant background information stronger for high levels of mental budgeting ➡️ lower probability of engaging in high-risk investments</li></ul>

Mental Accounting II

<ul><li>painful state of mind or psychological burden consumers experience upon purchase</li><li>lowered by credit card and mobile payments</li><li>bottom dollar effect: purchases using budgets close to exhaustion result in a lower customer satisfaction</li><li>higher level of mental budgeting results in stronger pain of payment</li></ul>

Pain Of Payment

H1: Socially excluded people have a higher preference for high-risk investment products than socially included people. H2: For individuals with higher mental budgeting, the positive effect of social exclusion on preference for high-risk investment products will be lower. H3: The moderating effect of mental budgeting on the impact of social exclusion on consumer preference for high risk investment is mediated by pain of payment.

Hypotheses

The effects of mental budgeting and pain of payment on the financial decision making of socially excluded people - Author: Sungyong Chun, Devon S. Johnson

Bank Marketing

The effects of mental budgeting and pain of payment on the financial decision making of socially excluded people

An equity market is a market in which shares of companies are issued and traded, either through exchanges or over-the-counter markets. Also known as the stock market, it is one of the most vital areas of a market economy. It gives companies access to capital to grow their business, and investors a piece of ownership in a company with the potential to realize gains in their investment based on the company's future performance.

Equity Market 

Equity markets are the meeting point for buyers and sellers of stocks. The securities traded in the equity market can either be public stocks, which are those listed on the stock exchange, or privately traded stocks. When companies are born they are private companies, and after a certain time, they go through an initial public offering (IPO), which is a process that turns them into public companies traded on a stock exchange. Private stocks operate slightly differently as they are only offered to employees and certain investors.

Understanding an Equity Market

In the equity market, investors bid for stocks by offering a certain price, and sellers ask for a specific price. When these two prices match, a sale occurs. Often, there are many investors bidding on the same stock. When this occurs, the first investor to place the bid is the first to get the stock. When a buyer will pay any price for the stock, they are buying at market value; similarly, when a seller will take any price for the stock, they are selling at market .

Trading in an Equity Market

Stock exchanges can be either physical places or virtual gathering spots. Nasdaq is an example of a virtual trading post, in which stocks are traded electronically through a network of computers. Electronic trading posts are becoming more common and a preferred method of trading over physical exchanges.The New York Stock Exchange (NYSE) on Wall Street is a famous example of a physical stock exchange; however, there is also the option to trade in online exchanges from that location, so it is technically a hybrid market.

Stock Exchanges

An equity market is a market in which shares are issued and traded, either through exchanges or over-the-counter markets.

The Psychology of Money

The Richest Man In Babylon

5 Interesting Ways To Invest in the Metaverse | The Motley Fool

The effects of mental budgeting and pain of payment on the financial decision making of socially excluded people

Equity Market

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