Psychology of money

This book relates personal finance to human behavior and gives a sophisticated perspective. Financial books focus on how to invest in the stock market, how to sell stocks, or how to build a portfolio. Housel tells about people and money relations.

USA people spend $400 on lottery tickets every year, they don't focus on savings.
According to them, the lottery is the only thing that can change their financial condition.
everyone thinks that the decision they are making is right but after some years they realize they should have taken it deliberately.
Morgan Hustle states some financial rules in this book

True wealth is what you don't see

ere are luxury cars, and a bungalow on one side which we can see clearly, and another side loan,emi personal and professional stress .that means what we see is not always true .what we see make us think in the wrong way. For example, looking at a rich person, we feel that we too wish we were rich like him, but we do not see his tension. If a rich person wants to buy a car, he thinks that people will respect him, but people respect his car. If a car passes by we say what a beautiful card we never say what a nice man he is. It has been brainwashed in the minds of people that being rich means you have something to show for it, but in reality, real wealth is that which allows us to live a life with freedom.
If we cannot buy anything in the world with money, then it is our time. If you have money but do not have time to enjoy it, then what is the use of that money? That's why my hustle says that spending to show off is the easiest way to be poor and the hardest way to be rich.

you pay a price for everything

Suppose you want to buy a car worth 12 lakhs and you have three options.
The first option is to buy a car worth 12 lakhs by paying money, and the second option is. Look for a cheap car and the third option is to steal another car.99% of people will not listen to the steal option because they know that the result will not be good. They will get the car, but can also go to jail. There is more harm than benefit here. Then we should replace it with a cheaper car because they know nothing is for free. Similarly, if you want to become rich then you have two options. First, invest where you will get long-time benefits and get good returns like a stock market index fund but for that, you have to learn that you will not be able to decide its price in dollars or rupees but by learning about doubt, and uncertainty. And after this, your future will be secure. Another way is that you just keep the money in a place like a bank FD, gold you will get safety, but you will not get the return. But still, people choose this option.

getting wealthy vs staying wealthy

There are many ways to become rich but the only way to become poor is by not handling money properly And spending more and more.
the author says that it is more difficult to stay rich than to become rich because the poor one does not have money, so he does not need to control himself. But if he is a rich person, he should know how to control himself. That's why you need to have a very different Mind Set to become rich and stay rich. If you already become rich through investment by saving small amounts, then there are chances that this honest mindset will keep you rich. For this, we always need to have a survival mindset.

aim to be financially unbreakable

make yourself so strong financially and mentally that the market cycle does not make any effect on you. When we invest in Gold or Real Estate, we know the market will fluctuate.
When the price falls, we do not sell it, rather we buy more. Similarly, we should keep the same logic in the stock market and investment.

A good plan leaves room for error

If you make an investment plan, then also think that if the plan does not work, then what is the other option?
In the world of investment, that is why we prepare a portfolio that consists of 10-15 companies and can save it in case of emergency.

be optimistic about the future.

We should always be optimistic about our future. You should have good thinking, but you should also be alert and careful about your current success. One should think about whether there is any danger in it.
The author has given two interesting examples.1)Ronald read
This man worked as a watchman all his life, but before he died, he had accumulated $8 million. Now how can a man accumulate so much money by doing a small job? So the answer is through investment.
the second example is Richard's fusion
He studied at Harvard University and worked in the world's top company Merrylee Lynch. but he made habit of debt that in 2008 he was declared Bank Corrupt. The only thing worse than poverty is becoming rich and then becoming poor again. If you can't manage 10lakh by investing then you can't even message 10 crores then this shows us that your biggest weakness is not your poverty. Your biggest weakness is not knowing how to manage money.
Poor people think that when they get more money then they will learn to manage it and rich people think that if they manage little money then they will get more money.

ing and financial freedom

three types of people are in the world. First, those who save money, second those who feel that they cannot save money, and third those who feel that they do not need to save money. Most people fall into the third category. We are taught from childhood that money should be saved. That money will be useful to us in the future. Even if your salary is less then you can become rich, but it is not possible except by saving.

Timeless advice on Money
make all your final decisions yourself.
live below your means-The worst thing that can happen is to spend your future money now.
seek pleasure from low-cost activities like exercise, reading, and learning which make you healthy, wealthy, and wise
maintain 20% of the wealth in liquid funds
every investment should pick a strategy that has the highest odds of successfully meeting their goals.