9 Important Takeaways From Book “The Psychology of Money” — by Morgan Housel

Mind Over Money: Navigating the Psychology of Wealth

I recently finished reading the book “Psychology of Money” by Morgan Housel and I was blown away by the insights and wisdom it offers.

The book is not about how to invest or save money, but rather how to think about money and how it affects our behavior, emotions, and decisions.

Photo by Vitaly Taranov on Unsplash

Here are the 9 most important lessons I learned from this book that I think everyone should follow to achieve higher success with their own hard-earned money:

1. No one’s crazy. Everyone makes financial decisions based on their own experiences, goals, and values. What seems rational to you may seem irrational to someone else, and vice versa. Don’t judge others or yourself too harshly for your money choices.
2. Luck and risk are both real and hard to measure. Sometimes you can do everything right and still fail or do everything wrong and still succeed. Don’t confuse outcomes with skill or effort, and don’t take success or failure personally.
3. The most powerful force in finance is time. Compound interest can turn small amounts of money into…