BOOK SUMMARY : The Psychology of Money . (Morgan Housel)

This masterpiece by Morgan Housel is really worth the hype . The author has put up the chapters and stories in such a way that even a kid who has no interest whatsoever in money or psychology would understand every word of this book.

I have read this book twice and it was captivating enough to muster my complete focus the second time also. Though this book is filled with enlightening chapters but ” two” most important and logical topics I got was 1. ” Luck plays a great role in your success” and 2.”savings is the blood and oxygen of you living financially free”

Yes I know , some would say that investment is the key and you don’t get rich by NOT DRINKING STARBUCKS . I know all these things ( I am just 30 and a BIG coffee lover ). See here in this book the author is not sharing some tips to get rich , the main crux of this book is that if you have money big or small , how can you sustain that money while working hard on growing it exponentially.

I know I am boring you … so here’s some profitable pointers which I think will give you the gist of this MASTERPIECE.

• People from different generations, raised by different parents , born into different economies , learn very different lessons. May be that’s why my father , and I suppose yours too would suggest to invest your early incomes in FDs ( Fixed Deposits).A person who took a loss in equities in 2008 ( SENSEX=9716 points) would never advice somebody in 2022 ( SENSEX=59300)to invest all his savings in equities and vice versa.
• In 1968 , there were millions high school age kids , but only few hundreds had computers in their schools and BILL GATES was one of them . I am talking about ( LUCK FACTOR ) here https://nishankmagoo.medium.com/an-interesting-story-about-bill-gates-b5dc6b922c93 . See everybody tries hard , a trader who’s watching CNBC awaaz all day , A small business owner , A manager in a company , An aspiring actor in Mumbai OR a new blogger like me (haha) but some factors are out of your hands like weather , recession , inflation , new government policy . So start believing in luck not a lot but yeah enough to shrug your shoulders and MOVE ON.
• PLEASE don’t show off , I mean whom do you have to prove ? Don’t break your bank to buy that funky supreme hoodie or that beautiful Rolex( though I want one asap), a LV bag etc etc .DONT BREAK YOUR BANK TO IMPRESS STREETS.
• COMPOUNDING IS MAGIC. Start putting some money in SIPs every month and let it multiply for good 20 something years . It takes time my friends , ROME WAS NOT BUILT IN A DAY . https://economictimes.indiatimes.com/industry/banking/finance/banking/magic-of-compounding-here-is-how-you-can-grow-your-wealth/articleshow/89018355.cms
• Always be afraid of going out of business . Money doesn’t like monotony , it wants excitement , it likes to change hands ,change places . So focus on growing your money , build more income streams and diversify your investments.
• START SAVING . Don’t think that saving is just for elderly or retiring folks. Invest but keep at least four months expenses aside. See the only benefit of saving is that you don’t have to break your investment midway . Don’t meddle with your investments , let them COMPOUND.
• NOTHING IS FREE . The way to riches is not just roses , don’t let a movie or a web series fool you . Entrepreneurship is a full time job , mental stress , hard work , excessive responsibility , building something from the scratch TAKES TIME . Savour this moment (I am going through the same), tackle the problems , learn from them and BE STRONG.

So , that’s my first blog , hope you have liked it. I have tried my best to share the glimpse of this wonderful book but still I would suggest that you please buy a copy and read by yourself . YOU ARE GOING TO LOVE IT . https://www.amazon.in/Psychology-Money-Morgan-Housel/dp/9390166268/ref=sr_1_2?crid=T8HAW94PCXIF&keywords=the+psychology+of+money&qid=1668962903&qu=eyJxc2MiOiIyLjI3IiwicXNhIjoiMS43MCIsInFzcCI6IjEuMjQifQ%3D%3D&sprefix=the+psychology+of+money%2Caps%2C147&sr=8-2