Review: The Psychology of Money

The Psychology of Money by Morgan Housel
My rating: 4 of 5 stars

Hooter: A Layman overview of Financial Literacy and the softer aspects behind it

You aren't going to walk out as a financial whizkid reading this book but there really isn't a whizkid but lot of other factors around financial literacy and planning for oneself. Packed with wisdom and examples on why the author suggests something taking extreme examples to highlight his point. The book focuses more on the thought process for you as an individual rather than the actual process of investing.

Some key takeaways:
1) Freedom with your own time is the highest dividend money pays.
2) Saving is the gap between your ego and your income.
3) Defining "enough"
4) Noone is impressed with you and your possession as much as you are.
5) Every investor has a different timeframe and a goal in mind
6) You can be wrong half the time but still make a fortune.

For someone beginning their journey, for someone who needs a refresher in 2021, this book acts as a quick easy read. The brevity and the ease of structure of the narrative makes it an easy, insightful read. I'd recommend as a good handy book to question some of the thought process behind blindly investing especially based on time tested experiences of a prior generation.

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