📖 The Psychology of Money - Morgan Housel

Even small investments grow exponentially over time—consistency matters more than perfection.

🔹 “Compounding works best when you give it time to run wild

.”

Wealth Comes from Saving, Not Just Earning

• Even with a huge salary, bad spending habits can leave you broke.
• Spending money to show off how much you have is the fastest way to have less money.

Instead, focus on saving and investing to build wealth for a secure future.

Remember:

• Live below your means.
• Budget wisely and stick to it.
• Pay off high-interest debts.
• Invest in your future.

Money's Real Purpose:

• Control over your time
• Ability to do whatever you want today

Highest form of wealth is waking up with this realization 🔑

“The highest form of wealth is the ability to wake up and say, ‘I can do whatever I want today.’” 🥇

More money shouldn’t mean more unnecessary expenses.

• Don't increase spending just because you have more money.

Keep your spending habits in check with these tips:

1. Avoid unnecessary purchases.
2. Stick to a budget and track your expenses.
3. Invest in assets that will bring a return.

Getting rich and staying rich are two different things. 🤑

People’s financial choices are shaped by their upbringing and experiences. Respect different perspectives.

• What seems crazy to you might make perfect sense to someone else.

Empathy is key when it comes to understanding different financial decisions. Remember that everyone has a unique background that influences how they handle their money 💰

Even the smartest people lose money if they let emotions dictate decisions.

🔹 “Financial success is not a hard science. It’s a soft skill.”

🔹 “Getting wealthy is slow. Losing it can be instant.”

Don't fall into the trap of trying to make a quick buck. It usually ends in big losses. Instead, be patient and focus on long term financial success.

No one can consistently predict stock prices, so avoid trying to time the market.

🔹 “Long-term planning is harder than it seems because the world is always changing.”

Fear and greed can lead to bad money decisions. Stay rational and stick to a plan.

🔹 "The more you desperately need something to be true, the more likely you are to believe a lie."

Financial success often involves luck. Stay grateful, not arrogant.

🔹 “Risk and luck are two sides of the same coin.”

Being rich is about income. Being wealthy is about assets and financial freedom.

🔹 “Rich is what you see. Wealth is what you don’t.”

Believe in long-term progress but stay prepared for downturns.

🔹 “Optimism sounds like a sales pitch. Pessimism sounds like someone trying to help you.”

Chasing more and more money leads to bad decisions. Know when you have enough.

🔹 “The hardest financial skill is getting the goalpost to stop moving.”

Don’t overcomplicate investments. Simple, steady strategies win over time.

🔹 “The best financial plan is the one that lets you sleep at night

.”

Borrowing for things that don’t grow in value keeps you stuck.

🔹 “Debt removes options from your future."

Prepare for unexpected losses while still being optimistic about the future.

🔹 “Save like a pessimist, invest like an optimist.”

Wealth-building is a series of small, good choices made consistently. 🧐

• Start small: Save even the smallest amount, it adds up with time
• Consistency: Be consistent in your financial decisions, it leads to big results

True wealth includes:

• Being healthy and fit;
• Nurturing relationships with friends and family;
• Having time freedom to do the things you love.

Remember:

• Having more money is just one aspect of wealth.
• True wealth means having more choices and opportunities.
• Find balance and prioritize your well-being!

🔹 “Wealth is having more options, not just more money.”