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 Psychology of Money Final Review by John Mitchell The Psychology of Money by Morgan Housel is a refreshing take on personal finance, exploring the deeply human behaviors, emotions, and biases that shape our financial lives. Rather than focusing on traditional investing strategies or formulas, Housel examines how our decisions about money are often driven more by psychology than by economics. This perspective makes the book an insightful and accessible read for people of all financial backgrounds. One of the book's key strengths is Housel’s storytelling. Each chapter uses relatable anecdotes and historical examples to unpack complex financial concepts. This narrative approach keeps readers engaged while making principles like compounding, risk management, and long-term planning feel approachable. Housel stresses that wealth is less about high earnings and more about behavioral traits like patience, discipline, and understanding when to say “enough.” He encourages readers to look b...
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 Psychology of Money Final Part by John Mitchell In the final pages of "The Psychology of Money" Housel concludes his findings about money that despite the setbacks he is optimistic on achieving individual financial growth after reading this. 1.  Investing and the "Personal" Factor Housel discusses how each individual’s relationship with money is unique, and what works for one person may not work for another. Financial goals, risk tolerance, and lifestyle choices differ vastly, and there’s no universal financial plan. He advises readers to avoid blindly following others’ investment strategies and to focus on building a financial approach that aligns with their personal values, goals, and circumstances. 2.  Understanding Wealth vs. Income Many people mistake high income for wealth, but Housel clarifies that income alone doesn’t equal wealth; wealth is built through saving, investing, and restraint. He emphasizes that wealth is what’s hidden—like savings and investmen...
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Psychology of money blog 3 by John Mitchell In the next 50 pages of the psychology of money Housel continues to explore deeper themes of money management, focusing on practical and philosophical insights into wealth, happiness, and financial decision-making. This can be useful in everyones personal lives when it comes to making logical decision making instead of emotional decision like seeing the stocks go down one day and then they tank for another week but you invest too early. The Psychology of Money 1. The Role of Humility and Long-Term Perspective Housel highlights the importance of humility in financial planning, reminding readers that no one can accurately predict the future, including market returns. By focusing on long-term goals and realistic expectations, people can avoid overconfidence and impulsive decisions. 2. The "Power of Tails" The concept of “tail events” is central here. In both investments and life, a few events or decisions can drive the majority of outc...
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Psychology Of Money Part2

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 Psychology of Money review part 2 by John Mitchell In the next 100 pages of The Psychology of Money (pages 50–150), Morgan Housel expands on key principles related to how we think about money, diving deeper into topics like saving, investment strategies, the impact of time, and how financial behaviours shape long-term wealth. Here’s a summary of the major ideas covered: Freedom and Happiness: Housel argues that financial success should aim for freedom—the ability to control your time and make choices. Many people chase wealth for status or possessions, but the true value lies in the independence it brings. Wealth is valuable not because of what it can buy, but because it provides flexibility and peace of mind. Avoiding Egotism: Housel cautions against ego-driven financial decisions, which often lead to risky bets and overspending. He highlights how a modest lifestyle and humility can protect against financial ruin, emphasizing that “saving money is the gap between your ego and yo...
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Psychology of Money Review

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First 50 pages of Psychology of money  by John Mitchell In the first 50 pages of The Psychology of Money , Morgan Housel introduces the central theme that financial success is not just about knowledge, but largely about behavior. He uses engaging anecdotes and historical examples to drive home the idea that personal finance is deeply influenced by psychology and individual decisions. So here are my deep comprehensive thoughts on each story he tells in understanding the role of money. 1. No One's Crazy Housel explains that people view money through the lens of their own experiences. Different upbringings, environments, and economic conditions shape how we think about money, and what seems irrational to one person might make perfect sense to another. For example, someone who grew up during a period of inflation might prioritise saving, while someone raised in a booming stock market might take more investment risks. 2. Luck and Risk Housel emphasises the often overlooked role of ...
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Background of this blog

Dear readers. I have made this blog to share my thoughts while reading revered books about the finance world to consolidate my understanding of these books. I also hope to inspire other people who find the books I read interesting to buy and read themselves. Hopefully, people find these thoughts interesting and want to hear more from me in the future
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