This book will change your LIFE ( The Phycology Money 🤑)

Hey friends welcome back to the channel and today we talking about 7 lessons about money form this fantastic book called The Phycology of Money

 

Alright the 1 is

1)   Everyone has different attitudes towards money and no one is Crazy

 

 

“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.”

“Every decision people make with money is justified by taking the information they have at the moment and plugging it into their unique mental model of how the world works.”

“People do some crazy things with money. But no one is crazy. Here’s the thing: People from different generations, raised by different parents who earned different incomes and held different values, in different parts of the world, born into different economies, experiencing different job markets with different incentives and different degrees of luck, learn very different lessons.”

 

 

2)   Don’t underestimate the importance of Luck

 

Here the Luck and risk are both the reality that every outcome in life is guided by forces other than individual effort.  They both happen because the world is too complex to allow 100% of your actions to dictate 100% of your outcomes.”

 

“They are driven by the same thing: You are one person in a game with seven billion other people and infinite moving parts. The accidental impact of actions outside of your control can be more consequential than the ones you consciously take.“

3)   Learn to say enough

“Life isn’t any fun without a sense of enough. Happiness, as it’s said, is just results minus expectations.”

·       “The hardest financial skill is getting the goalpost to stop moving. But it’s one of the most important. If expectations rise with results there is no logic in striving for more because you’ll feel the same after putting in extra effort. It gets dangerous when the taste of having more—more money, more power, more prestige—increases ambition faster than satisfaction.”

 

4)   Appreciate the magic of compounding

 

“If something compounds—if a little growth serves as the fuel for future growth—a small starting base can lead to results so extraordinary they seem to defy logic. It can be so logic-defying that you underestimate what’s possible, where growth comes from, and what it can lead to.”

 

“$81.5 billion of Warren Buffett’s $84.5 billion net worth came after his 65th birthday. Our minds are not built to handle such absurdities.”

“His skill is investing, but his secret is time. That’s how compounding works.”

5)   Use money to buy a freedom :

 

“The ability to do what you want, when you want, with who you want, for as long as you want, is priceless. It is the highest dividend money pays.“

·       “The highest form of wealth is the ability to wake up every morning and say, ‘I can do whatever I want today.’ People want to become wealthier to make them happier. Happiness is a complicated subject because everyone’s different. But if there’s a common denominator in happiness—a universal fuel of joy—it’s that people want to control their lives.”

“More than your salary. More than the size of your house. More than the prestige of your job. Control over doing what you want, when you want to, with the people you want to, is the broadest lifestyle variable that makes people happy.“

 

6)   Save money as much as you can

 

“Building wealth has little to do with your income or investment returns, and lots to do with your savings rate.”

 

“Personal savings and frugality—finance’s conservation and efficiency—are parts of the money equation that are more in your control and have a 100% chance of being as effective in the future as they are today.”

7)    Getting Wealthy vs. Staying Wealthy

“There are a million ways to get wealthy … but there’s only one way to stay wealthy: some combination of frugality and paranoia.”

“Good investing is not necessarily about making good decisions. It’s about consistently not screwing up.“

“If I had to summarize money success in a single word it would be ‘survival.'”

“Getting money requires taking risks, being optimistic, and putting yourself out there. But keeping money requires the opposite of taking risk. It requires humility, and fear that what you’ve made can be taken away from you just as fast. It requires frugality and an acceptance that at least some of what you’ve made is attributable to luck, so past success can’t be relied upon to repeat indefinitely.”