10 lessons from “The Psychology of Money” by Morgan Housel
A thread 🧵
A thread 🧵
“Spending money to show people how much money you have is the fastest way to have less money.”
“Someone driving a $100,000 car might be wealthy. But the only data point you have about their wealth is that they have $100,000 less than they did before they bought the car (or $100,000 more in debt). That’s all you know about them.”
“No one is impressed with your possessions as much as you are. You might think you want a fancy car or a nice watch. But what you probably want is respect and admiration. And you’re more likely to gain those things through kindness and humility than horsepower and chrome.”
“Less ego, more wealth. Saving money is the gap between your ego and your income, and wealth is what you don’t see. So wealth is created by suppressing what you could buy today in order to have more stuff or more options in the future.”
“No matter how much you earn, you will never build wealth unless you can put a lid on how much fun you can have with your money right now, today.”
“Planning is important, but the most important part of every plan is to plan on the plan not going according to plan.”
“Growth is driven by compounding, which always takes time. Destruction is driven by single points of failure, which can happen in seconds, and loss of confidence, which can happen in an instant.”
“Money’s greatest intrinsic value—and this can’t be overstated—is its ability to give you control over your time. Use money to gain control over your time, because not having control of your time is such a powerful and universal drag on happiness.”
“Independence, to me, doesn’t mean you’ll stop working. It means you only do the work you like with people you like at the times you want for as long as you want.”
“Risk is what’s left over when you think you’ve thought of everything.”
Book link: amzn.to/37gjr42
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