The Psychology of Money: Timeless lessons on wealth, greed, and happiness

what works—not what worked yesterday but what works today.

great deal since then.41

the other hand, isn’t it possible that this experience can lead to overconfidence? Failing to admit you’re wrong? Anchoring to previous outcomes?

“the purpose of the margin of safety is to render the forecast unnecessary.”

The world is filled with people who look modest but are actually wealthy and people who look rich who live at the razor’s edge of insolvency. Keep this in mind when quickly judging others’ success and setting your own goals.

“There is no faster way to feel rich than to spend lots of money on really nice things. But the way to be rich is to spend money you have, and to not spend money you don’t have.

to accept that you might have enough, even if it’s less than those around you.

We have brains that prefer easy answers without much appetite for nuance.

The mental trick we play on ourselves here is an over-admiration of people who have been there, done that, when it comes to money. Experiencing specific events does not necessarily qualify you to know what will happen next. In fact it rarely does, because experience leads to overconfidence more than forecasting ability.