The Psychology of Money
Top 10 Lessons from "The Psychology of Money" by Morgan Housel 1. Compounding Sustained long term investments beat short termed high return interests over time due to compound interest. Fun fact: Warren Buffet accumulated 97% of his wealth after his 65th birthday. 2. Wealth is what you don’t see We have a tendency to judge wealth based on what we see: cars, clothes, and houses. Investment accounts, on the other hand, are not visible. We base our financial success on outward appearances. 3. Freedom The ability to wake up every morning and say, "I can do whatever I want, when I want, with who I want, for as long as I want," is the ultimate form of wealth. This, above all, is the highest dividend money can pay. 4. Strategy Live below your means. You should value your freedom of autonomy more than buying nice things you wanna have right now. Use that money to educate yourself and start investing. Being willing to delay your gratification is a must! 5. Risk Risk is what ...