10 secrets of money rich people don't want you to know

The author emphasizes that luck and risk are two sides of the same coin and that nothing is as good or bad as it seems. The author suggests that we should account for luck and the potential lack of luck in our investments

1. Luck and Risk

The author discusses how even rich people can do crazy things with their money and how it's important to know when enough is enough.

2. Never Enough:

According to the author, good investing is not necessarily about making good decisions, but about consistently avoiding bad ones.

3. Getting Wealthy Vs Staying Wealthy:

The author argues that controlling your time is the highest dividend money pays and that having the freedom to do what you want with your time is a form of wealth.

4. Freedom:

The author discusses how people will not admire you because of your expensive possessions, but because of who you are. The author suggests leading a good life and being a good person to earn the respect of others

5. Man In The Car Paradox:

The author emphasizes the importance of saving money for the future.

6. Save Money:

The author suggests that being reasonable with money is more important than being rational.

7. Reasonable Or Rational:

The author discusses how surprises are inevitable in life and finance and how we should plan for them.

8. Surprise:

The author urges readers to plan for the future by holding long-term diversified stock portfolios and allowing them to compound, saving for the future, and operating with a margin for error.

9. Room for Error:

The author distinguishes between being rich and being wealthy. The author argues that being rich is about earning a high salary, while wealth is about having money and investments in your bank account that have been built up over time and would last even longer.

10. Wealth is what you don't see:

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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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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