The Psychology of Money by Morgan Housel

Your personal experiences with money makeup maybe 0.000001% of what’s happened in the world but maybe 80% of how you think the world works.

I started this book today and though it would be cool to break down the chapters as I read them. I wanna read one a day so I think this will be good to post about for the next little bit.

I have heard lots of good about this book from a few co workers and so I though I would give it a try. So lets start..

The intro talks about how how we handle money is more of a soft skill than a hard one. He hopes to break down in the chapters to reteach you how to think.

Chapter 1 Nobody is crazy.

People do crazy stuff with their money. This does not mean they are crazy. We might think they are crazy but they are not. We have all been in different situations with money. Different upbringings, countries, economies, jobs, and so on.

He talked about how if you grew up when stocks were strong you stay in stocks even when they are bad and vice versa.

We have all seen and all made stupid mistakes in the crypto market. I am doubtful that this will change for most people. We are often irrational when it comes to our money. I hope this book helps me make better decisions in the future.

So one thing to take away is that you might do crazy stuff with your money but you are not CRAZY. Or at least most of us are not.

I guess I can let me crazy friend off the hook about his money decisions....

Hopefully I knock out chapter 2 tomorrow.

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