The Psychology of Money: Timeless lessons on wealth, greed, and happiness
“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.
Morgan Housel • The Psychology of Money: Timeless lessons on wealth, greed, and happiness
that future coming true. But room for error is underappreciated and misunderstood. It’s often viewed as a conservative hedge, used by those who don’t want to take much risk or aren’t confident in their views. But when used appropriately, it’s quite the opposite.
Morgan Housel • The Psychology of Money: Timeless lessons on wealth, greed, and happiness
Many of us wind through life on a similar trajectory. Only 27% of college grads have a job related to their major, according to the Federal Reserve.46 Twenty-nine percent of stay-at-home parents have a college degree.47 Few likely regret their education, of course. But we should acknowledge that a new parent in their 30s may think about life goals ... See more
Morgan Housel • The Psychology of Money: Timeless lessons on wealth, greed, and happiness
Bubbles form when the momentum of short-term returns attracts enough money that the makeup of investors shifts from mostly long term to mostly short term.
Morgan Housel • The Psychology of Money: Timeless lessons on wealth, greed, and happiness
Become OK with a lot of things going wrong. You can be wrong half the time and still make a fortune, because a small minority of things account for the majority of outcomes. No matter what you’re doing with your money you should be comfortable with a lot of stuff not working. That’s just how the world is.
Morgan Housel • The Psychology of Money: Timeless lessons on wealth, greed, and happiness
Campbell summed it up: Having a strong sense of controlling one’s life is a more dependable predictor of positive feelings of wellbeing than any of the objective conditions of life we have considered.
Morgan Housel • The Psychology of Money: Timeless lessons on wealth, greed, and happiness
The biggest single point of failure with money is a sole reliance on a paycheck to fund short-term spending needs, with no savings to create a gap between what you think your expenses are and what they might be in the future.
Morgan Housel • The Psychology of Money: Timeless lessons on wealth, greed, and happiness
You can scoff at linking the rise of Trump to income inequality alone. And you should. These things are always layers of complexity deep. But it’s a key part of what drives people to think, “I don’t live in the world I expected. That pisses me off. So screw this. And screw you! I’m going to fight for something totally different, because this—whatev... See more
Morgan Housel • The Psychology of Money: Timeless lessons on wealth, greed, and happiness
History is mostly the study of surprising events. But it is often used by investors and economists as an unassailable guide to the future.