The Most Useful Tool For Money: Your Mind- 5 Key Takeaways

Photo by Morgan Housel on Unsplash

The most quoted book on money in the past year has been Morgan Housel’s “The Psychology of Money”. There are timeless lessons on wealth, greed, and happiness within the book that I have distilled down to five key takeaways to apply to your money habits.

1. Doing well with money has little to do with how smart you are and a lot to do with how you behave. Behavior is hard to teach, hence why many people struggle with money.
2. Modern capitalism is pro at 2 things: generating wealth and envy. Wanting to surpass your peers can be the fuel of hard work. Happiness = results-expectations.
3. Things that are invaluable

• Reputation
• Freedom & independence
• Family & friends
• Being loved by those who want to love you
• Happiness

4. Your best shot at keeping these things is knowing when its time to stop taking risks that might harm them and knowing when you have enough.

5. The most dependable predictor of positive feelings of wellbeing is having a strong sense of controlling one’s life.