Key lessons one can learn from ‘The Psychology of Money’
Live MintAmong a barrage of personal finance books, there are only a few that stand out. Written by Morgan Housel, Wall Street Journal columnist and partner at Collaborative Fund, in September 2020; the book gives a message that doing well with money is not necessarily about what you know but about how you behave – a skill hard to teach, even to smart people. Through a narrative of 19 stories, the author shares numerous perspectives to look at money, and teaches how to make better sense of it. He explains, “Your personal experiences with money make up maybe 0.00000000001 percent of what’s happened in the world, but maybe 80 percent of how you think the world works.” This means, there is a huge gap between firsthand knowledge and how we use those insights into making sense of the world. He quotes Scott Galloway, a New York University’s academic, to say, “Nothing is as good or as bad as it seems.” He explains that luck and risk are so similar that you can’t believe in one without equally respecting the other.
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