In “The Psychology of Money,” author Morgan Housel shares valuable advice for personal financial success in 20 loosely connected, mostly real-life stories.
He defines financial success not as achieving above-average returns and owning expensive luxury goods but as building wealth over the long term with a personal strategy that lets us sleep well at night.
The decisive factors for this strategy are primarily not technical aspects and specialist knowledge, but rather an understanding of ourselves, our attitude, and our emotions – such as awareness of our goals, what risks we are willing to take, and how we deal with stressful situations.
Each chapter addresses a different aspect and provides tangible recommendations. These include, for example, a long-term investment strategy and patience, awareness of appropriate returns, luck and risk, room for error (so as not to be forced to take ruinous steps in the event of setbacks), and self-confidence (so as not to be led astray by self-proclaimed financial gurus).
Thanks to the loosely connected and relatively short chapters, the book is a very enjoyable read.
It stands alongside financial classics such as Benjamin Graham's “The Intelligent Investor” and John C. Bogle's “The Little Book of Common Sense Investing” but tells much more contemporary stories and is significantly easier to read.
I recommend it to anyone who wants to build wealth and sleep well while doing it.
🎧 Suitable as an audiobook? Yes.
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