Book notes - The Psychology of Money
A lot of insights from the book caught my attention. The book is very accessible. Some highlights that I found interesting:
- Saving money is the gap between your ego and your income, and wealth is what you don’t see. Wealth is created by suprressing 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.
- You don’t need a specific reason to save. Just save for the sake of saving. Having assets can provide a control over your time. The ability to do what you want, when you want, with who you want, for as long as you want to, pays the highest dividend.
- For investing your money, increasing time horizon is the single most powerful thing you can do.
- Become OK with a lot of things going wrong. You can be wrong half the time and still make a fortune. This is because a few tail events can make such a huge impact on your investments that you can still come out fairly positive. Just make sure to see failures and successes together rather than isolating them. Failures are inevitable.