The Psychology of Money: Key Lessons and Insights

Lets break down The Psychology of Money using native LA vernacular. This book provides an incredibly insightful fresh view on money.

No matter if you are trying to live within a budget or just understand how the system works this book should definitely be on your reading list.

First things first making the most of your money is not about being an expert its about changing behaviors.

Are you willing to alter the way that you think? Changing is hard work!

No one is floundering: making financial decisions requires more than spreadsheets alone we often rely on feelings when making our choices about money rather than spreadsheets alone.

At home or work previous views advertisements and ego collide to form our ideal ideas of what is appropriate spending money on.

Strange actions involving money often occur as this unfamiliar territory can seem strange or foreign to us what may appear strange to one may seem sensible for another!

Yet none of this matters since letting our feelings dictate our choices is not an issue either!

Risk and luck play an integral part in the journey that is the success of your business so there is no easy or direct path.

When things turn sour make sure a bad investment doesnt cost too much and stay engaged in your game!

Theres always more but be mindful of when enough is enough: Dont let comparisons get in your way no such thing as having too much.

Certain aspects are too valuable to risk regardless of potential rewards.

Compounding is truly magic think of it like the snowball effect which helps shape future growth.

Starting off small but eventually growing exponentially over time. We often overlook its full potential.

For instance saving $200 each month starting at age 20 earning six percent interest would net you nearly $96000 by age 60 worth approximately $502810.

However if starting saving at age 40 saving the same amount until age 60 would only have netted approximately 70400 dollars saved.

Stay Humble to Maintain Wealth Stay humble when it comes to maintaining wealth by being aware that life can be unpredictable and accepting some victories as random acts rather than being certain theyll bring future rewards.

Be a relaxed individual who recognizes some victories are simply coincidence and know that prior wins do not guarantee future ones.

Growing wealth the right way doesnt require racing for the highest yield rather it requires consistently yielding results over time even during times of chaos.

Be cautious to reduce risks having an additional safety net increases your odds remain optimistic but keep an eye out for any obstructions along your journey.

Tails Youre To Fool: Certain events have the ability to determine most outcomes in business.

While many companies may seem similar only certain ones actually succeed and provide returns for stock markets.

When understanding that tails control most aspects of our lives failure should come as no surprise.

Control of your own destiny can be immensely satisfying and satisfying what better way than taking charge and finding your own path?.

Wealth can be defined as something we take for granted: an accumulation of assets you can access at will in the future.

Wealth gives us freedom of choice and allows us to increase it over time though not everyone is wealthy some may even be struggling in debt so be wary when assessing their level of success.

Keep that paper Wealth building begins with saving which you have control of.

Returns on investments can be helpful but unpredictable being content with saving a smaller amount is like getting an unexpected raise while savings provide security if life throws any surprises at you.

Being flexible also enables you to learn new abilities along the way.

Reasonable is superior to rational The rational approach tends to be more secure over the long run when it comes to money matters investors who stick to their plans possess a powerful resource: dedication...

Keep this in mind and let investment take its course over time.

Volatility should only serve as a warning sign not cause for alarm. By understanding this fact longterm investing becomes much simpler..

Perspective is everything investors have different goals that cause them to view similar situations differently.

Bubbles arise when short term returns entice too much capital into an asset class and alter its composition of investors leading them to change their allocation accordingly...

Be Alert If you believe something youre likely to become part of an alternative reality that claims it exists.

Everybody views things through different lenses with our brains filling in any blanks that remain.

Personal Suggestion

The Psychology of Money explores how our minds engage with money movements.

It explores risk and luck savings strategies as well as compound interest.

Focuses on controlling actions rather than simply acquiring it not acquiring is not the goal here instead this book seeks to explore our thinking patterns around success and what constitutes success for each of us individually...