Thread by @TheCaptain182

My key learnings from the great book "The Psychology of Money" by @morganhousel

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A thread ...

1. People who have control of their time tend to be the happiest in life.

2. More than wanting big returns, I want to be financially unbreakable. And if I'm unbreakable, I'll get the biggest returns, because I'll be able to stick around long enough for compounding to work wonders.

3. Over the course of your lifetime as an investor, the decisions that you make today or tomorrow or next week will not matter nearly as much as what you do during the small number of days - likely 1% of the time or less - when everyone around you is going crazy.

4. Doing something you love on schedule you can't control can feel the same as doing something you hate.

5. Take it from those who have lived through everything: Controlling your time is the highest dividend money pays.

6. Savings without a spending goal gives you options & flexibility - the ability to wait and the opportunity to pounce (on investments).

7. But if you have the flexibility, you have the time to wait for no-brainer opportunities to fall in your lap. This is a hidden return on your savings.

8. What you should learn when you make a mistake because you did not anticipate is that the world is difficult to anticipate. That's the correct lesson to learn from surprise: that the world is surprising.

9. The most important economic events of the future are things that history gives us little to guide about. They will be unprecedented events.

10. History can be a misleading guide to the future of the economy and stock market because it doesn't account for structural changes that are relevant to today's world.

11. The average time between recessions has grown from about 2 years in the late 1800s to 5 years in the early 20th century to 8 years over the last half-century.

12. The purpose of margin of safety is to render forecasting unnecessary.

13. You can plan for every risk except the things that are too crazy to cross your mind. And those crazy things can do most harm.

14. The biggest single point of failure with money is a sole reliance on a paycheck to fund short-term spending needs with no savings.

15. Sunk costs - anchoring decisions to past efforts that can't be refunded - are a devil in a world where people change over time.

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