This post is part of the 📖 The Psychology of Money series.
Today, I am reading introduction chapter of the brand new book The Psychology of Money: Timeless lessons on wealth, greed, and happiness written by Author, Morgan Housel.
Doing well with money isn’t necessarily about what you know. It’s about how you behave. And behavior is hard to teach, even to really smart people.
In The Psychology of Money, award-winning author Morgan Housel shares 19 short stories exploring the strange ways people think about money and teaches you how to make better sense of one of life’s most important topics.
Introduction: The Greatest Show On Earth
“A genius is a man who can do the average thing when everyone else around him is losing his mind.” — Napoleon
The premise of this book is that doing well with money has a little to do with how smart you are and a lot to do with how you behave.
A genius who loses control of their emotions can be a financial disaster. The opposite is also true. Ordinary folks with no financial education can be wealthy if they have a handful of behavioural skills with nothing to do with formal measures of intelligence.
Financial success is not hard science. It’s a soft skill, where how you behave is more important than what you know.
“The world is full of obvious things which nobody by any chance ever observes.” — Sherlock Holmes
The author outlined 20 of the most important flaws, biases, and causes of bad behaviour that affect people when dealing with money. It was called The Psychology of Money, and over one million people have read it.
This book is a deeper dive into the topic. Some short passages from the report appear unaltered in this book.
That’s it for today. Tomorrow, we will read the first chapter No One’s Crazy, which outlines the strange way how people think about money.
Author(s): Morgan Housel
Part 1 of 23 in the 📖 The Psychology of Money book series.