20 Lessons from the book: The Psychology of Money

I am a book enthusiast who just loves reading

and exploring different topics to satisfy my curiosity.

One of the books that caught my eye and was recommended to me by

a lot of creators is

The Psychology of Money: Timeless Lessons on Wealth, Greed, and Happiness.

We really love to think that we understand money

(or maybe it is just me),

but the book flipped my perspective

and opened my mind to a new way of seeing and using money,

and I hope it will do the same to you.

20 lessons from the book The Psychology of Money

1. Spending money to show people how much money you have is the fastest way to lose money.

2. Getting money is one thing. Keeping it is another.

3. A genius who loses control of their emotions can be a financial disaster. The opposite is also true.

4. Getting money requires taking risks, being optimistic, and putting yourself out there. But keeping money requires the opposite of taking risk. It requires humility, and fear that what you’ve made can be taken away from you just as fast.

5. Doing well with money has a little to do with how smart you are and a lot to do with how you behave.

6. Some lessons have to be experienced before they can be understood.

7. History never repeats itself; man always does.

8. The highest form of wealth is the ability to wake up every morning and say, “I can do whatever I want today.”

9. 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.

10. When things are going extremely well, realize it’s not as good as you think. You are not invincible, and if you acknowledge that luck brought you success then you have to believe in luck’s cousin, risk, which can turn your story around just as quickly.

11. The question is: Why do so many people who are willing to pay the price of cars, houses, food, and vacations try so hard to avoid paying the price of good investment returns?

12. If respect and admiration are your goal, be careful how you seek it. Humility, kindness, and empathy will bring you more respect than horsepower ever will.

13. The ability to do what you want, when you want, with who you want, for as long as you want, is priceless. It is the highest dividend money pays.

14. Beware taking financial cues from people playing a different game than you are.

15. When you don’t have control over your time, you’re forced to accept whatever bad luck is thrown your way.

16. You have to give yourself room for error. You have to plan on your plan not going according to plan.

17. Everything has a price, and the key to a lot of things with money is just figuring out what that price is and being willing to pay it.

18. Some of the most miserable workers I’ve met are people who stay loyal to a career only because it’s the field they picked when deciding on a college major at age 18.

19. Good decisions aren’t always rational.

20. A good rule of thumb for a lot of things in life is that everything that can break will eventually break.