Book Notes: The Psychology of Money

By Morgan Housel - Link to Book

Not all success is due to hard work, and not all poverty is due to laziness. Keep this in mind when judging people, including yourself

Happiness = Results - Expectations

There is no reason to risk what you have and need for what you don't have and don't need

Money's greatest intrinsic value = ability to give you control over your time. Things to spend money on that have been proven to increase fulfillment:

• Quality friendships

• Being part of something bigger than themselves

• Quality UNSTRUCTURED time with your children & family

You might think you want fancy / expensive things, you DON'T.

• You want Respect and Admiration from other people

• Expensive stuff almost never brings this, especially from people you want the respect from
  

Growth is driven by Compounding, which always take time.

Destruction is driven by single points of failure, which can happen in seconds, and loss of confidence, which can happen in an instant. 

Hindsight gives us the illusion that the world makes sense, even when it doesn't make sense.

The earlier you get the goalposts to stop moving the better position you will be in. 

Important financial decisions are made at the dinner table. 

• Minimizing the chance of disappointing a spouse or child vs. Maximizing a specific return