Here are 6 mental models from the book The Psychology Of Money ๐
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1. Psychologically Reasonable > Financially Rational
Personal finance is more than numbers on a spreadsheet. It's about emotions.
If a decision will keep you up at night, it probably isn't worth it.
Find the middle ground between financial math and your mindset.
Personal finance is more than numbers on a spreadsheet. It's about emotions.
If a decision will keep you up at night, it probably isn't worth it.
Find the middle ground between financial math and your mindset.
2. Behavior > Intelligence
"A genius who loses control of their emotions can be a financial disaster." - @morganhousel
It doesn't matter how smart or educated you are. If you can't control how you BEHAVE, you will never be wealthy.
Read this for more:
"A genius who loses control of their emotions can be a financial disaster." - @morganhousel
It doesn't matter how smart or educated you are. If you can't control how you BEHAVE, you will never be wealthy.
Read this for more:
https://twitter.com/idyllicfinance/status/1432730961951838209
3. Wealth Is Silent
What you think is wealth:
- Fast cars
- Giant houses
- Luxury clothes
What wealth actually is:
- Stocks
- Cryptoassets
- Rental properties
What you think is wealth:
- Fast cars
- Giant houses
- Luxury clothes
What wealth actually is:
- Stocks
- Cryptoassets
- Rental properties
As the saying goes, money talks, and wealth whispers...
If you want to be rich, you must know what real wealth is.
Here's a resource to help you learn:
gumroad.com/a/502961267/Vgโฆ
If you want to be rich, you must know what real wealth is.
Here's a resource to help you learn:
gumroad.com/a/502961267/Vgโฆ
4. The Man In The Car Paradox
When people see flashy things, they aren't looking at you. They're looking at the object.
You're much better off cutting your ego and focusing on:
- Family
- Passions
- Memories
Forget about materialism and focus on the things that matter.
When people see flashy things, they aren't looking at you. They're looking at the object.
You're much better off cutting your ego and focusing on:
- Family
- Passions
- Memories
Forget about materialism and focus on the things that matter.
5. Volatility, The Price Of Wealth
You can't cry when your investments go down...
โVolatility is the price of admission. The prize inside are superior long-term returns. You have to pay the price to get the returns.โ
- @morganhousel
You can't cry when your investments go down...
โVolatility is the price of admission. The prize inside are superior long-term returns. You have to pay the price to get the returns.โ
- @morganhousel
6. Happiness
Happiness varies for all of us, but the common ground is freedom.
The freedom to do what you want, with whom you want, when you want...
Taking care of your finances is CRUCIAL for this!
Don't allow money problems to separate you from the life you want.
Happiness varies for all of us, but the common ground is freedom.
The freedom to do what you want, with whom you want, when you want...
Taking care of your finances is CRUCIAL for this!
Don't allow money problems to separate you from the life you want.
Thank you for reading!
If you enjoyed this thread, do 2 things:
1. Follow me @idyllicfinance for more content on wealth creation
2. Share this thread with a RT
If you enjoyed this thread, do 2 things:
1. Follow me @idyllicfinance for more content on wealth creation
2. Share this thread with a RT
https://twitter.com/idyllicfinance/status/1435992639199981573
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