Book Review of "The Psychology of Money" by 'Morgan Housel' | Bookish Adventures | World of Words

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Book Review of  “The Psychology of Money”

"Doing well with money isn’t necessarily about what you know. It’s about how you behave. And behaviour is hard to teach even to really smart people"

Book cover of "Psychology of Money" by 'Morgan Housel'

How I Came Across This Book:-

If you people are on YouTube and looking for recommendations of self-help books in the Finance category the top 2 recommendations are always “The Intelligent Investor” by ‘Benjamin Graham and “The Psychology of Money” by ‘Morgan Housel’. I didn’t want to pick The Intelligent Investor because currently, I am not anywhere near the stock market so The Psychology of Money is the go-to book for me. I purchased this book from Amazon at the price of INR 176.

About The Book:-

The Psychology of Money is not a conventional how to get rich book but a book that will tell you how you can stay rich. The very first chapter begins with a quotation “Your personal experiences with money make up maybe 0.00000001% of what’s happened in the world, but maybe 80% of how you think the world works”

. The way the author explains finances in this book is very easy to understand and it also has clarity in it. The book is not like any other financial book as it not only covers the involvement of mathematical calculations but also how in reality people make financial decisions based on their emotions. The author uses 19 short stories to make his point while exploring the strange ways how people think about money. This book also conveys the message that aiming to be reasonable works better than trying to be coldly rational.

This book hardly talks about methods and ways of creating wealth, it mostly focuses on the methods of sustaining and creating wealth over a long period so that one can be wealthy with whatever income or earnings the person has at the time. This book also focuses on the long-term investing of money so that one can get the best return out of it. This book is certainly not a quick rich kind of book. This book has 20 chapters spanning over 238 pages.

Index-1

Index-2

Best Things About This Book:-

·         This book presents us with some very good real-life examples and stories through which we can understand more about how money works.

·         The writing in this book is very simple and fast-paced so one can find it easy to navigate through the concepts of this book.

·         The book is worth its hype because it is different from other personal finance books in terms of content and approach.

·         This book is good for beginners and can be understood by anyone with a desire to learn.

·         The book is great for those who have a lumpsum amount and are unable to figure out where to place it.

Conclusion:-

Personally, this is the second personal financial book I have ever read and the content of this book is very different from what I have found on blogs and videos of financial content creators on the internet. So I can say that this book is worth the hype it is getting in the community and I think I will reread it once a year to sharpen my knowledge about money. This book is so amazing that this will be the first book that will get a score of 100 out of 100 and according to me, this book falls in the category of being Read at Least Once in a Lifetime.