Thread by @Collect_Wisdom

THREAD // Important concepts to understand about psychology and human behavior that impact your finances

1. Nobody cares about your failures.

Many people are scared to ask for a promotion, apply to a new job, or reach out to new clients because they fear failure. The truth is, nobody cares. Nobody is tracking your failures. Everyone is too consumed with tracking their own failures.

2. People don't care about your lifestyle as much as you think.

The “Rich man in the car paradox” - when you see someone in a fancy car, you don’t think about how impressed you are with the person inside the car; instead you think about how cool it would be if you had that car.

3. Humans adapt quickly.

Whether you live frugally or lavishly, you’ll adapt to both lifestyles quickly. The difference is that frugal living leads to a high savings rate and financial freedom while a lavish lifestyle leads to a low savings rate and dependence on a day job.

4. Experiences tend to provide more lasting happiness than possessions.

You will get used to your house, car, and phone. They will become normal over time.

But that trip you went on with family and friends can be recalled over and over with the same level of fondness and joy.