Des notes détaillées sur The Psychology of Money

Des notes détaillées sur The Psychology of Money

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The book concludes with a reflection nous the ultimate purpose of wealth. Housel suggests that money’s value lies in its ability to provide happiness, freedom, and security, rather than in the pursuit of material possessions pépite sociétal status.

The biggest simple position of failure with money is a sole reliance nous-mêmes 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 Quand in the adjacente. Use room conscience error when estimating your touchante returns. For his own investments, the author assumes the touchante returns he’ll earn in his lifetime will Quand ⅓ lower than the historic average of 6.8% expérience the S&P 500 since 1870. So, he saves more than he would if he assumed that the adjacente will resemble the past and he will earn 6.

Because Simons did not find his investment stride until he was 50 years old. He had less money to compound.

In Chapter 19, “All Together Now,” Housel reviews the tips he ah covered in his work so dariole. He follows this with “Confessions,” in which he explains his own approach to his personal Ressource. In this chapter, he reveals that his number Nous priority is independence. As such, Housel direct a fairly modest lifestyle that is crème below his income, saving a great deal of his money to ensure he will have the freedom to make his own personal and professional choices.

If you feel like you’ve made all the wrong financial decisions, pépite that wealth is just not Je of the things you’ll ever Lorsque able to achieve, The Psychology of Money is the book for you.

Thanks for such a detailed summary. I enjoyed the reading and was Content to see how some of the repère mentioned resonated with me.

Warren Crédence has owned 400 to 500 dépôt during his life. He’s made the majority of his money on 10 of them. A lot of things in Affaires and investing work this way. Grand tails—the farthest ends of a dotation of outcomes—have tremendous influence in ressource, where a small number of events can account cognition the majority of outcomes.

Ravissant it relies je earning merely good returns sustained uninterrupted connaissance the longest period of time.

Have enough room expérience error between what could happen in the voisine and what you need to happen in the future in order to ut well. This gives you endurance, and endurance lets you stay in the market connaissance longer intuition compounding to work its magic.

This chapter is a bit of a summary of all the prior chapters. Go dépassé of your way to find humility when things are going right and forgiveness/compassion when they go wrong. Parce que it’s never as good or as bad as it apparence.

With that flexibility, you can wait connaissance the perfect opportunities in your career and your investments. You’ll Si in a better condition to learn new skills when necessary.

In Chapter 14, “You’ll Permutation,” Housel explains that people’s interests, emploi, and short- and oblong-term goals échange over the déplacement of their direct, usually more than people expect them to. Instead of clinging to the same modèle made when younger, it is better to keep Argent mou to reflect new goals.

To put in the author Morgen Hosel’s word- “Beware taking financial cues from people playing salary of a psychology professor a different Termes conseillés than you are.”

Doing well with money isn't necessarily embout what you know. It's about how you behave. And behavior is Pornographique to teach, even to really Délicat people. Money-investing, personal ressource, and Industrie decisions-is typically taught as a math-based field, where data and formulas tell coutumes exactly what to ut. But in the real world people offrande't make financial decisions on a spreadsheet.