THE PSYCHOLOGY OF MONEY – Psychology about money is a book that will take us to understand money, how people think about money, how they spend money, how they spend money, and this book also reveals the secrets behind the success of most people, how do successful people view this and invest their money?
Money has been with us since we were born. We spend money on everything from the cost of delivery on the first day we are born to the cost of a coffin on the last day before our body decays. The thickness of the stack of money in our hand becomes the amount of power that each person holds. The thicker the money in our hand, the more power we have. But the equation of money does not end there. Because money does not only give power. It also gives shame to those who cannot bear the weight of money.
This book on the psychology of money has become one of the best money books in years. Written by Morgan Housel, it’s all about the psychology of money. Who would have thought that the pieces of paper that blow in the wind and the coins that we often drop down the drain when we open our wallets could become powerful objects that can determine the course of many people’s lives? So when it comes to money, knowing what isn’t as important as knowing what to do with it?
“No one is truly crazy.”
You’ve probably read books, watched movies or heard stories about someone who made bad financial decisions and wondered what they were thinking. Or a millionaire who lost all of his wealth in a short period of time just because he didn’t know how to manage his money. These stories seem crazy, right? But the truth is, no one is crazy. We all make bad financial decisions all the time.
“Managing money well may have little to do with how smart you are, but a lot to do with how you behave. Unfortunately, behavior is a hard thing to teach, even to smart people.”
We are always taught that good results come from good actions, and if you fail or make a mistake, it means you must have done something wrong. But the truth may not always be so. In terms of finance, even if you calculate very well, you can still fail in your investment. And even if you invest unwisely, you can still make a lot of profit. These things make us start to pay attention to the matter of “luck”, which we may not be able to tell how much luck is on someone’s side or who is more, because it is a factor that we cannot control. But we cannot deny that “luck” really plays a role.
“Stop chasing after money.”
When it comes to money, if we compare it to a coin, it has both good and bad sides. We can use money to buy happiness, comfort and the things we want. But on the other hand, it also creates silent jealousy. This jealousy is what will turn you into a money hunter without realizing it. You may think that you are working for yourself and your family’s future, but the real reason may be that you want to look richer than your neighbors or the people you are comparing yourself to. And what we often see is people who are willing to sacrifice their valuable time and relationships to work only in exchange for more money.
“Your happiness cannot be compared to money. Don’t chase money at its expense.”
The best way to avoid this trap is to understand that more money does not equal more happiness. Try to open your mind to the things that matter in life that are outside of work and money. Pay attention to the things around you. Start with simple things like spending more time with your family, relaxing more, spending time with yourself, or taking up a hobby. And try to be brave enough to say no to risky business deals. You don’t have to accept every job that comes your way. Creating a balance in your life is important to make sure that you’re not spending your whole life chasing money.
“Be keen to play the long game”
Finance is a long-term game. Investors who are only interested in short-term profits are not very smart players. Investment skills for short-term investors may not be necessary. The real skill needed is to predict the market perfectly. Things change very quickly. No matter how familiar you think you are with the stock market, the suddenness of the changes will surprise you in a way you could not have predicted. (This point makes the admin think about the arrival of Covid. It is very unpredictable. It comes suddenly and has a lot of impact on investors and businesses.)
“Your investing skills will make you money, but what you need more is the skills to maintain your wealth.”
Countless investors who were once rich have ended their lives because of the word “once rich”. They made huge profits until they reached a point where greed took over without them knowing. They thought they were so familiar with the market until the market they thought they knew robbed them of all their money and their life. Finance is a game of risk but high returns. Therefore, experts who understand these things will play this game with a long-term perspective rather than making quick, reckless profits.
“Nothing is more important than your happiness!”
Many people believe that having more money will make them happier. But interviews with Americans and numerous scientific studies have shown that what makes them happier are having meaningful relationships, spending quality time with family, and being involved in society. So don’t let yourself base your happiness on material things or compare your life to your neighbors who may seem wealthier than you. When you look at your family and build good relationships, you will find that you are happier than if you were wealthier than your neighbors.
“Don’t be rich, be wealthy.”
There is a difference between wealth and prosperity. People who live in houses worth hundreds of millions are rich. Even if they borrow money to buy a house, they must have at least a high income to be able to pay off the debt. But wealth is when you have hundreds of millions in cash or assets that you haven’t spent yet. When people say they want to be a millionaire, they usually mean that they want to live a luxurious life and spend money like a millionaire. But wealthy millionaires don’t spend millions a day. They save and invest to own many assets. But that’s what most people don’t see. But what most people see is the show of wealth, which anyone can look rich. And many people who look rich may actually be poor.
Conclusion
Uncertainty is the nature of life. We do our best to get the outcome we predict, but that doesn’t mean things always go our way. If you predict the market’s direction and it goes your way, that’s great. But if it doesn’t go your way, don’t be discouraged. The important thing is to get up as soon as possible and change your plan to deal with the situation at hand.
While we all have our moments when we make crazy financial decisions, it’s important to remember that no one is truly crazy. It’s human nature to be limited by our knowledge, experience and market when it comes to our financial decisions. Try to seek advice from people around you from a variety of backgrounds to open your eyes and let them warn you before you make another crazy financial decision.
The most important thing is to protect your happiness. Always keep yourself in check. Don’t be someone who lives to chase money. Always make time for the important things and people in your life. Because in the end, what’s the point of spending money if you’re not enjoying it?
“Money is a great blessing and a bitter curse to our lives.”
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