{"id":708,"date":"2021-01-11T20:13:55","date_gmt":"2021-01-11T14:43:55","guid":{"rendered":"https:\/\/charpaisa.com\/?p=708"},"modified":"2021-08-21T22:13:39","modified_gmt":"2021-08-21T16:43:39","slug":"book-review-the-psychology-of-money","status":"publish","type":"post","link":"https:\/\/charpaisa.com\/book-review\/book-review-the-psychology-of-money\/","title":{"rendered":"Book Review: The Psychology of Money"},"content":{"rendered":"\n<p>One of  my goals for this year is to read one book a week and it seemed like &#8216;The Psychology of Money&#8217; by Money Housel was good choice given its popularity. I wanted to understand what the fuss was all about given the fact that 1st principles have already been discussed in thousands of book before. <\/p>\n\n\n\n<p>I am an avid reader of the books in the Personal Finance and Self Help Category. So, my expectations from the book were really not that high. After all, &#8216;Personal Finance&#8217; can be summed up in two lines:<\/p>\n\n\n\n<blockquote class=\"twitter-tweet\"><p lang=\"en\" dir=\"ltr\">Spend less than you earn and invest the difference.<br><br>Don&#8217;t get into stupid debt.<br><br>Two line summary of personal finance philosophy.<\/p>\u2014 Abhishek (@0cool1) <a href=\"https:\/\/twitter.com\/0cool1\/status\/1346773605011648512?ref_src=twsrc%5Etfw\">January 6, 2021<\/a><\/blockquote> <script async=\"\" src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n\n\n\n<h2 class=\"wp-block-heading\">People&#8217;s thinking is a product of the times that they live in!<\/h2>\n\n\n\n<p>Therefore, it was a pleasant surprise that I could not put down the book once I started. The Psychology of Money sheds new light on how people think about finances. <\/p>\n\n\n\n<p>One basic tenet that the book talks about is why your parents think differently about money than you. Frankly, before reading this book, I had a hard time explaining to myself why my parents did not take certain no-brainer financial steps\/decisions that they should have. <\/p>\n\n\n\n<p>The book explains that people are a product of their times. A person growing up in 60 and 70s saw great poverty in India. We were a fledgling nation trying to find its foot on the world stage. Our economy was weak, &#8216;License Raaj&#8217; ruled. <\/p>\n\n\n\n<p>Sometimes, it astonishes me that the Government put a cap on the number of scooters that be produced at a factory. You had a license for producing only a certain number of scooters. Imagine that Govt. is stopping you from producing all that you can. In today&#8217;s India, it is not only absurd but unthinkable.<\/p>\n\n\n\n<p>So, given that times were different, people&#8217;s thought was shaped differently. Morgan Housel goes on to explain that someone brought up in the Great Depression had a very different approach to personal finance and even a period of a decade influenced the personal finance thought vastly.<\/p>\n\n\n\n<p>Another concept the author explores is that luck plays a huge role in your financial success. Bill Gates had a one in a million opportunity that he was enrolled at a school that had computers. It is easy to overestimate the role of your &#8216;hard work&#8217; and underestimate the role of stars aligning perfectly tp make your financial success happen.<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-style-large is-layout-flow wp-block-quote-is-layout-flow\"><p>Average decisions taken when everybody around you is committing hara-kiri is what leads to success. <\/p><\/blockquote>\n\n\n\n<p>The author explains that Warren Buffet went through 33 recessions during his investing career and still did not panic sell. That&#8217;s what makes Mr. Buffet an exceptional investor. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Final Rating: The Psychology of Money &#8211; An Instant Classic<\/h2>\n\n\n\n<p>Overall Review: 4.7\/5 stars. <\/p>\n\n\n\n<p>You know the feeling you have when find a hidden gem of a movie, podcast or book. Yes, this is one of those. An Instant Classic, which will go in my list of books to read every year.<\/p>\n\n\n\n<blockquote class=\"twitter-tweet\"><p lang=\"en\" dir=\"ltr\">Books that I re-read every year:<br><br>1. The Compound Effect<br>2. Think and Grow Rich<br>3. Mindset<br>4. The Richest Man in Babylon<br><br>What are some your favourite re-reads?<\/p>\u2014 Abhishek (@0cool1) <a href=\"https:\/\/twitter.com\/0cool1\/status\/1345203278846582784?ref_src=twsrc%5Etfw\">January 2, 2021<\/a><\/blockquote> <script async=\"\" src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n\n\n\n<p>What are your thoughts about the book? Let me know in the comments. Happy Reading!<\/p>\n","protected":false},"excerpt":{"rendered":"<p>You know the feeling you have when find a hidden gem of a movie, podcast or book. Yes, this is one of those. An Instant Classic, which will go in my list of books to read every year.<\/p>\n","protected":false},"author":1,"featured_media":722,"comment_status":"open","ping_status":"open","sticky":true,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v22.3 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Book Review: The Psychology of Money - Charpaisa<\/title>\n<meta name=\"description\" content=\"You know the feeling you have when find a hidden gem of a movie, podcast or book. 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