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‘The Psychology of Money” is one of the top books regarding Finance. Its main point is that behavior is what matters most as far as money is concerned.
Manually mathematical calculations tell us how to manage our finances. But that’s not the case in real life. Practically, important strategies are made when we meet people. We do chit chats and talk. This way, it is more progressive and helpful.
Furthermore, there are 19 short stories in the book. With the help of these stories, the writer explains the queer ways people think about money. What’s more, he beautifully helps us in understanding important matters of life.
Psychology of Money, renowned books:
Now, I am going to tell you the wealth lesson which I concluded from “The Psychology of Money”.
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Everyone’s Sensible
Here you may have some idea from the title. No one’s crazy. The reason is that every person has a different experience of the world. People having different values, morals and nations also think and act differently. Maybe what they do is right according to them but not you. The way they perceive things is different from you. Thus, their learning is also different from yours.
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Chance Including Peril
Luck and Risk go side by side. Both are important and thus, both should be valued. It cannot be denied that taking risks reaps profit.
Moreover, the writer gives head ups to the people to not be beguiled by the situation. As everything good is not good. Similarly, everything bad is not necessarily bad.
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Far from Complete
One of the many Human weaknesses is greed. Nothing is enough for us. It is a psychological fact that we compete with each other. We compete in everything. Thus, it has become such a game that could never be won.
The writer gives an important lesson here that is also obvious. It is that don’t go for what you can’t afford. Also, to win this social race it’s better not to play at all. Because it doesn’t how high you go; it will never be enough.
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Galactic Wealth
Success is survival. You get money when you take risks continuously. Also, you maintain a positive attitude. But keeping money means you are not taking any risks. Remember there is luck in risk. It means you can also lose all of your money.
Therefore, stocking away your money means no further risk. Once you get enough it’s okay to stop taking risks rather than losing everything you have.
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Independence
The criteria for Happiness are different for different people. The writer has stressed here that happiness is not just a huge amount of money. You know you are happy when you like what you do.
In addition, Happiness is when you can mold your life according to yourself. You are independent; you don’t need to follow anyone. I am not saying that quitting your work would make you happy. No, loving your work is happiness.
Independence is priceless thing money can buy. It is true luxuries don’t make man happy but the freedom to do what he likes does.
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Material Wealth Doesn’t Matter
Why do people want to be filthy rich? Mostly, it is to impress others. Every human has a hunger for appreciation inside him. He wants himself to be liked. He demands love and respect from others.
To fill this hole inside him he tries to get riches money can buy. However, great fortune and fabulous wealth will not get people to respect him.
Therefore, if you truly desire to be admired then focus on your activities.
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Do Not Waste Money
Here again, we buy expensive things just to impress others. In the quest of impressing, we may be wasting our valuable money on a useless thing. This way we would never be able to pile our money up.
That’s why it’s important to know what you need and what you desire. Saving will create your wealth, not a high salary.
To stay wealthy, earn more, and spend less. You would spend less when you stop trying to impress others.
Wrapping It All Up!
Morgan Housel has done an excellent job with the simple, easy-to-follow rules about money. These rules are convenient and indeed a fact. What are you waiting for? Go on read it and not ever think about going broke.