The Psychology of Money
,Summary – 19 short stories about the way people think about money and
teaches you how to make better sense of one of life’s most important
topics
,“A genius is the man who can do the average when everyone
else around is losing his mind”
- Napolean
1. No one’s crazy
People see money in a way because of personal experiences
This makes up 0,00001% of how it really works
2. Luck & Risk
Every outcome in life is guided by forces other than individual
effort
What is luck? What is skill? What is risk? You will face this when
learning about managing money
- Not all success is due to hard work
- Look for broad patterns of success and failure
3. Never enough
“There is no reason to risk what you have and need for what
you don’t have and don’t need.”
- Set a goal when you have enough
- Social comparison: battle can never be won!
- “Enough” is not too little
- Many things never worth risking.
4. Compounding, Compounding
, Time is most valuable
The compounding of time creates magic
5. Staying Wealthy
Good investing is about constantly not screwing up.
‘Survival mindset, comes to appreciating 3 things:
- Be able to stick around long enough for compounding to
work wonders.
- Plan margin of Safety
- Accept nuance.
6. Tails, You Win
You can be wrong half of the time and still make a fortune
- Keep your head cool during recession
- Tails drive everything in business. Investing and Finance
- Realize its normal for lots of things to fail, break, go wrong
and fall.
7. Freedom
Controlling your time is the highest dividend money pays.
,Summary – 19 short stories about the way people think about money and
teaches you how to make better sense of one of life’s most important
topics
,“A genius is the man who can do the average when everyone
else around is losing his mind”
- Napolean
1. No one’s crazy
People see money in a way because of personal experiences
This makes up 0,00001% of how it really works
2. Luck & Risk
Every outcome in life is guided by forces other than individual
effort
What is luck? What is skill? What is risk? You will face this when
learning about managing money
- Not all success is due to hard work
- Look for broad patterns of success and failure
3. Never enough
“There is no reason to risk what you have and need for what
you don’t have and don’t need.”
- Set a goal when you have enough
- Social comparison: battle can never be won!
- “Enough” is not too little
- Many things never worth risking.
4. Compounding, Compounding
, Time is most valuable
The compounding of time creates magic
5. Staying Wealthy
Good investing is about constantly not screwing up.
‘Survival mindset, comes to appreciating 3 things:
- Be able to stick around long enough for compounding to
work wonders.
- Plan margin of Safety
- Accept nuance.
6. Tails, You Win
You can be wrong half of the time and still make a fortune
- Keep your head cool during recession
- Tails drive everything in business. Investing and Finance
- Realize its normal for lots of things to fail, break, go wrong
and fall.
7. Freedom
Controlling your time is the highest dividend money pays.
