The Psychology of Money by Morgan Housel
I recently finished The Psychology of Money, Morgan Housel. It is short, simply written and very effectively conveys the purpose of wealth in the context of a full life. I've read books on productivity, habits, health, tidiness, philosophy, and especially finance. This might be the best personal finance book I've read so far..
The book explores the behavioral psychology that shows our relationship with money, and provides insights into how we can make better financial decisions. It doesn't have a direct guide for wealth but you can use the knowledge to your advantage. For a personal finance book, it has a very zen energy. Almost every statement in the book is insightful, like (not verbatim) "A lot of people don't really want to have $1 million. They want to spend $1 million, which is the exact opposite of being a millionaire," and "There are two things in life that, whether you like it or not, you will have to think about: health and money."
It's not your typical investment advice book. This is much more about your behaviour and reasoning towards money and how you should invest/save based on happiness and ego instead of the cold analytical spreadsheet way of money that most people view it as.So far I enjoyed reading and picked up a few good financial habits along the way.
Like all good self-help books, it backs up its statements with evidence, statistics, and good analogies. I learned a lot about the financial history of the US after WWII. The book alluded to how field mice ruined German war tanks before a big battle. The book mentioned Ronald Read, the janitor with $8 million in net worth when he passed away.
The book just... makes sense. It makes sense to make saving money a habit even if you don't have a goal for your savings because literally no one can predict the future and your savings will literally save you if something awful happens. It makes sense to take risks in life as long as you can recover what you lose and get back on track if you fail. It makes sense that people overreact to setbacks and hardly celebrate progress because the former happens abruptly, while the latter happens too slowly for anyone to notice.
I could've been mindlessly scrolling social media instead of reading this book. I'm so glad I decided to spend my time reading this book instead.
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From your little analysis I can tell that's an interesting book. In truth we most time spend our income even before they get into our hand. It was nice reading through your post @evih, and I think I have to read that book myself