My Top 10 Takeaways From “The Psychology Of Money”

By Morgan Housel

Jamal Maison

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I do not own the copyrights to this photo.
  1. “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.”
  2. “Things that have never happened before happen all the time.”
  3. “Planning is important, but the most important part of every plan is to plan on the plan not going according to plan.”
  4. “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.”
  5. “Bill Gates once said, “Success is a lousy teacher. It seduces smart people into thinking they can’t lose.”
  6. “Using your money to buy time and options has a lifestyle benefit few luxury goods can compete with.”
  7. “Savings can be created by spending less. You can spend less if you desire less. And you will desire less if you care less about what others think of you.”
  8. Compounding works best when you can give a plan years or decades to grow. This is true for not only savings but careers and relationships. Endurance is key. And when you consider our tendency to change who we are over time, balance at every point in your life becomes a strategy to avoid future regret and encourage endurance.
  9. 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.
  10. Someone driving a $100,000 car might be wealthy. But the only data point you have about their wealth is that they have $100,000 less than they did before they bought the car (or $100,000 more in debt). That’s all you know about them.

Thank You For Reading!

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Jamal Maison

My Ideas In A Vault. Personal Branding Agency Owner.