The psychology of money

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Morgan Housel Morgan Housel is a partner at The Collaborative Fund and a former columnist at The Motley Fool and The Wall Street Journal. 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. Introduction: The Greatest Show On Earth 1. No One's Crazy 2. Luck & Risk 3. Never Enough 4. Confounding Compounding 5. Getting Wealthy vs. Staying Wealthy 6. Tails, You Win 7. Freedom 8. Man in the Car Paradox 9. Wealth is What You Don't See 10. Save Money 11. Reasonable > Rational 12. Surprise! 13. Room for Error 14. You'll Change 15. Nothing's Free 16. You & Me 17. The Seduction of Pessimism 18. When You'll Believe Anything 19. All Together Now 20. Confessions Postscript: A Brief History of Why the U.S. Consumer Thinks the Way They Do Endnotes Acknowledgements Introduction: The Greatest Show On Earth 1. No One's Crazy 2. Luck & Risk 3. Never Enough 4. Confounding Compounding 5. Getting Wealthy vs. Staying Wealthy 6. Tails, You Win 7. Freedom 8. Man in the Car Paradox 9. Wealth is What You Don't See 10. Save Money 11. Reasonable > Rational 12. Surprise! 13. Room for Error 14. You'll Change 15. Nothing's Free 16. You & Me 17. The Seduct ... 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 peop...

The Psychology of Money Summary and Study Guide Thanks for exploring this SuperSummary Study Guide of “The Psychology of Money” by Morgan Housel. A modern alternative to SparkNotes and CliffsNotes, SuperSummary offers high-quality Study Guides that feature detailed chapter summaries and analysis of major themes, characters, quotes, and essay topics. In Chapter 1, “No One’s Crazy,” Housel emphasizes how people’s different backgrounds and childhood experiences inform their perception of money, risk, and financial management. Housel contrasts the experiences of the average American during the Great Depression with that of President J. F. Kennedy, who grew up In Chapter 4, “Confounding stay wealthy. He recommends maintaining a “bar-belled” approach to finance: being optimistic and somewhat risk-taking to attain wealth, while remaining wary, frugal, and fearful in order to keep it. In Chapter 6, “Tails, You Win,” Housel examines the role of “tails” in stories of extreme financial success, such as Walt Disney. Housel defines a “tail” as a very rare occurrence, again emphasizing the role of luck or chance in finance. He uses this analysis to remind the reader to not focus on the success stories of specific individuals, but to try to emulate the more general patterns of moderate success that everyday people tend to enjoy. In Chapter 7, “Freedom,” Housel argues that freedom and a sense of control over one’s life is the best thing that money can buy. He cites research that shows tha...

“Some people are born into families that encourage education; others are against it. Some are born into flourishing economies encouraging of entrepreneurship; others are born into war and destitution. I want you to be successful, and I want you to earn it. But realize that not all success is due to hard work, and not all poverty is due to laziness. Keep this in mind when judging people, including yourself.” ― Morgan Housel, “Be nicer and less flashy. No one is impressed with your possessions as much as you are. You might think you want a fancy car or a nice watch. But what you probably want is respect and admiration. And you’re more likely to gain those things through kindness and humility than horsepower and chrome.” ― Morgan Housel, “Luck and risk are both the reality that every outcome in life is guided by forces other than individual effort. They are so similar that you can’t believe in one without equally respecting the other. They both happen because the world is too complex to allow 100% of your actions to dictate 100% of your outcomes. They are driven by the same thing: You are one person in a game with seven billion other people and infinite moving parts. The accidental impact of actions outside of your control can be more consequential than the ones you consciously take.” ― Morgan Housel, “Less ego, more wealth. Saving money is the gap between your ego and your income, and wealth is what you don’t see. So wealth is created by suppressing what you could buy today ...