When I first picked up "The Psychology of Money," I'll admit, I expected a revelation - some secret formula to master the world of finance. But what I found was something even more valuable. Through its pages, the book reminded me of the financial principles I had already encountered yet often overlooked in my daily life.
What truly struck me was how the book delved into the various factors that shape our relationship with money. It made me reflect on my own beliefs, habits, and experiences that have influenced my financial decisions. Book gave me a fresh perspective, one that inspired me to continue my financial journey with newfound clarity and confidence.
In his writing, writer adeptly distinguishes between the goals of becoming wealthy and becoming rich, emphasising that pursuing wealth is a far more meaningful and significant endeavour. He highlights that achieving wealth is not solely dependent on accumulating money; various other factors, such as luck, connections, and one's environment, play crucial roles in determining financial success. This insightful perspective encourages readers to consider the broader context and influences that contribute to lasting wealth creation.
Overall the biggest factor which you can use in your favour is compound interest and its a 2 edge sword, if you understand you can make it work in your favour and but if you ignore the institute will make it in there favour for sure. The biggest factor in becoming wealthier is time, time plays crucial role and it can make or brake the whole financial situation in your life. Don't ever brake the compounding cycle in your life otherwise it will break your life.
Something Morgan Housel mentions that really resonated with me is the importance of being cautious when taking financial advice from unfamiliar sources. In my own life, I've found that I'm the best judge of my goals and aspirations, so it only makes sense that I play an active role in planning my financial journey. Sure, financial advisors can offer helpful insights and lay out different options, but ultimately, the decisions should align with our unique circumstances and dreams. After all, we know ourselves better than anyone else, and our financial choices should reflect that intimate understanding.
Throughout his work, Housel employs compelling analogies between medical events and financial events that we've witnessed over the years. These comparisons not only provide valuable context but also demonstrate the interconnectedness of various aspects of life. Notably, he emphasises that human behaviour, goals, and missions evolve over time, impacting our financial choices and requiring flexibility in our planning. This human-centric approach to personal finance truly resonates with readers, urging us to remain mindful of our ever-changing lives as we chart our financial course.
So overall book is bringing the light that its not about how you work with money but its more about how you behave towards money.
Overall rating is 4.5 🌟 and specially must read for all age group. I know this book might be not so interested for there 20s youngster age group, but if you want your 20 year young children to understand about money in that case this is book. I wished I would have read this book in my young age, but now I have read twice and its never too late to start 😄
You can buy book from amazon : The Psychology Of Money and audio book from audible
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