Rolling Review: Psychology of Money
Live Review of the book and will be updated as I make progress on it.
16 Oct 2020
This month as a part of Maker’s Guild, reading challenge, I made the bet to read Morgen Housel’s The Psychology of Money.
My bet was ₹300 and I will get back my money + more, if I finish a review and present it to the community. So, I’m kinda working hard for ₹300 🙈
I decided to name this series of reviews called rolling reviews as I would reviewing books as I pick them up daily or weekly. Removing the stress of me to be at it every single day.
Introduction: Learnings
I pre-ordered the book and when the book was delivered, I did not start with any expectations. But the story in introduction just shifted the perspective enough to sit tight and chapter 1 just opened up some great perspectives.
Some highlights:
A story of flippant arrogance dealings of money. A personal story shared by the Author on how a genius who loses control of their emotions can be a financial disaster.
Doing well with money has little do that with how smart we are but more about how you behave with it. The opposite is also true.
Another story on how a janitor made $8Mn by investing in blue-chip stocks. Fascinating how compounding works and if you don’t disturb it at all.
You could be a Harvard educated, Merrill Lynch Executive but your greed could cost you more than and end up Bankrupt.
Finance is overwhelmingly taught a math based field but in fact we should be taught how to handle it better in our heads.
Two topics impact everyone: health and money.
Engineers can determine the cause of a bridge collapse because there’s agreement that if a certain amount of force is applied to a certain area, that area will break. Finance is different. It’s guided by people’s behaviours.
Most importantly, you need to understand finance from the perspective of psychology and not just numbers.
History never repeats itself; man always does.
- Voltaire