I may be the only idiot who saw a bestseller related in a field I work in and decided to ignore it. It was not until one of the noteworthy people I follow, shared highlights that piqued my interest.
The Psychology of Money explored money from the psychological perspective. Well, that’s obvious, but you will be blown away with what’s inside. No wonder it’s a bestseller.
I loved the book. It’s an enjoyable read with nineteen short chapters.
It’s well-structured. I loved how the chapters are related and progressed. They unveiled quite a lot of important lessons on money, financial planning and investments.
The content is crystal clear, with some financial jargon but that shouldn’t be much of an issue.
The arguments were amazing. They were supported with graphs, articles and some interesting analogies. Take for illustration, the difference between rich and wealthy. It reminded me of a saying that goes like: Rich is flashy while the wealthy is quiet.
Some arguments reminded me of the lessons I learnt from previous books like Malcolm’s Gladwell’s Outliers and Peter Lynch’s One Up On Wall Street.
The lessons, insights and revelations were valuable, stunning and thought provoking. Some of them are:
- You might think you want an expensive car, a fancy watch and a huge house. But I am telling you, you don’t. What you want is respect and admiration from other people, and you think having expensive stuff will bring it. It almost never does – especially from the people you want respect and admiration from. No one is impressed with your possessions as much as you are.
- When most people say they want to be a millionaire, what they might mean is “I’d like to spend a million dollars”. And that is literally the opposite of being a millionaire
- It showed why compounding is the 8th wonder of the world. A key factor that is often overlooked because of its counterintuitive nature. First 10-15 years are as slow as snails but the next 10 are wild.
- He highlighted the importance of saving that I could easily relate to. You don’t need a specific reason to save. It’s a hedge against life’s inevitable ability to surprise the hell out of you at the worst possible moment. How true is that!!!
The Psychology of Money is a great book about money with important money lessons that will dramatically improve your perspective and improve your finances. It will be a wonderful addition to your money, financial education, and investing themed books.