Simplified Finance

 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...

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 ...

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