The Psychology of Money: Timeless Lessons on Wealth, Greed, and Happiness
by Morgan Housel
View on GoodreadsMorgan Housel's collection of 20 short essays arguing that financial outcomes are mostly behavior, not intelligence — and that the stories people tell themselves about money matter more than the math.
Core ideas
- Reasonable beats rational: a financial plan you'll stick to outperforms a theoretically optimal one you abandon when stressed.
- Compounding plus time is the whole engine; trying to maximize returns is much less important than not interrupting compounding through panic-selling, fees, or bad timing.
- Room for error and luck/risk are the under-discussed factors — most success stories have a luck component nobody wants to credit, and most disasters have a small-tail-risk source nobody hedged.
Published2020
Pages242
ISBN9780857197689
ReadAug 2023
