Book · Money and wealth mindset · 2020
The Psychology of Money
Morgan Housel · 20 chapters
The Useful verdict: Read 6 of the 20 short chapters. They hold the ideas that change how you spend and save.
The book in 60 seconds
Morgan Housel argues that doing well with money depends more on behavior than on intelligence. 20 short chapters show why: luck and risk shape outcomes, compounding needs time, wealth is the money you don't spend, and room for error beats a perfect plan.
Your time
About 3.5 hours to read the parts that matter, instead of about 7 hours for the whole book.
Based on about 272 pages at 40 pages an hour, with skimmed parts counted at a third.
Raja's take
The best money book for people who hate money books. Short chapters, no spreadsheets. Reread the chapter on enough before any big purchase.
Read only these chapters
Tap any chapter. Read: ch. 4, ch. 5, ch. 8, ch. 9, ch. 10 and ch. 13.
4. Confounding Compounding
Time is the real engine of wealth. Stay in the game.
4 ideas from this book
Wealth is what you don't see
The money you didn't spend is the wealth.
The car paradox
People notice the car, not the driver. Stop buying to be admired.
Room for error
Plan for things going worse than expected.
Stay in the game
Avoid choices that could force you to sell at the worst time.
Read it if
You earn decently but money never seems to build up.
Skip it if
You want a step-by-step budget. Start with I Will Teach You to Be Rich.
Quick answers
Is The Psychology of Money worth reading?
Yes, but not all of it. Read 6 of its 20 chapters: ch. 4, ch. 5, ch. 8, ch. 9, ch. 10 and ch. 13. They hold the ideas that change how you spend and save.
Which parts of The Psychology of Money should I read?
Read ch. 4, ch. 5, ch. 8, ch. 9, ch. 10 and ch. 13. Skim the parts marked skim for their 1 idea, and skip the rest on a first read.
Who is The Psychology of Money for?
You earn decently but money never seems to build up. Skip it if: You want a step-by-step budget. Start with I Will Teach You to Be Rich.
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