The Psychology of Money Paperback – 1 September 2020

Timeless lessons on wealth, greed, and happiness doing well with money isn’t necessarily about what you know. It’s about how you behave. And behavior is hard to teach, even to really smart people. How to manage money, invest it, and make business decisions are typically considered to involve a lot of mathematical calculations, where data and formulae tell us exactly what to do. But in the real world, people don’t make financial decisions on a spreadsheet. They make them at the dinner table, or in a meeting room, where personal history, your unique view of the world, ego, pride, marketing, and odd incentives are scrambled together. In the psychology of money, the author shares 19 short stories exploring the strange ways people think about money and teaches you how to make better sense of one of life’s most important matters.

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Product details

• Publisher: Jaico Publishing House (1 September 2020); Jaico Publishing House, JA-1, Jash Chambers, Off Sir Phirozshah Mehta Road, Fort, Mumbai, Maharashtra 400023 Phone: 022 4030 6767
• Language: English
• Paperback: 252 pages
• ISBN-10: 9390166268
• ISBN-13: 978-9390166268
• Item Weight: 220 g
• Dimensions : 20 x 14 x 4 cm
• Country of Origin: India
• Importer: Jaico Publishing House, JA-1, Jash Chambers, Off Sir Phirozshah Mehta Road, Fort, Mumbai, Maharashtra 400023 Phone: 022 4030 6767
• Packer: Jaico Publishing House, JA-1, Jash Chambers, Off Sir Phirozshah Mehta Road, Fort, Mumbai, Maharashtra 400023 Phone: 022 4030 6767
• Generic Name: Paperback Book

• Best Sellers Rank: #1 in Books (See Top 100 in Books)
  • #1 in Personal Transformation
  • #1 in Analysis & Strategy

• Customer Reviews: 
  4.5 out of 5 stars    6,990 ratings

Top reviews from India

Vikrama D.

5.0 out of 5 stars Fantabulous

Reviewed in India on 22 September 2020

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The expectations from this book were sky-high. And, does it deliver. The key lessons on optimism and pessimism and long term aside - the two things that state with me:
1. Expectations change even slower than reality. Everyone sees the world they have seen before.
2. Everyone plays the game of investment differently. You need to define your game.

This is a fantastic book. It's not a book about investments. It is a book about your mind, and mine and how it thinks about money, savings, expenditure, and investments. And, it is brilliant. Pick it up now.

163 people found this helpful

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MCube_slade

5.0 out of 5 stars the world is actually big and we are just a blip in it

Reviewed in India on 29 September 2020

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See guys this book is for those who have had a lot of Their skin in the game of the stock market and thought of creating wealth from it.
The first level of investor is the one who knows money can be made in the market but doesn't know how and starts to trade without any knowledge.
The second level investor has made profit or loss on his capital and starts to find out where did he has gone wrong and starts learning about some basic concepts such as PE ratio.
The third level of an investor starts finding value in whatever the scrip he has been following and starts finding justification that it is costly or cheap and buy or sell them.
A fourth-level investor follows and checks if the price has gone up or not very often and loses faith if it doesn't go up after he bought it, and if the price doesn't go up he sells it and looks for another one. in a short span of months. Again goes back to the drawing board and finds what went wrong.

Then comes the whole talk of buffetology and starts to find companies like that and invest in them if he felt that it was cheap.

But everyone forgets that buffet is buffet because of his principles and patience which helped him in compounding for a very long time such as 70-80 years which very few do it. That's when actually psychology matters and that's what Morgan tries to tell us in this book that more than analysis of the scrip, the conviction that you calculated and the patience to hold it at least for several decades remains intact only then the wealth would be created or else you would be just a person among a crowd doing nothing but ordinary things in life. And explains that the world is actually big and we are just a blip in it. It gives us all great humility and convinces us to be humble and show gratitude to others.

120 people found this helpful

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Sandeep Bhasin

5.0 out of 5 stars Must read for young investors

Reviewed in India on 20 September 2020

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This is a must-read for the youngsters of today... or anyone who has still not started saving for the future. Morgan Housel beautifully communicates the idea of saving money and how! Me, at 48, get inspired to the core to save more and spend less. He has the knack for explaining difficult stuff in such a simple language. 5 stars from me. Take my word for it: you’ll love it!

60 people found this helpful

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Vivek Sharma

5.0 out of 5 stars Why reading “The Psychology of Money” is a must for better understanding of Money

Reviewed in India on 17 October 2020

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I have read many books on personal finance, investments, money, etc. but I have not come across a book as interesting as “The Psychology of Money” by Morgan Housel. There are 20 chapters in the book and each one of them has its own valuable message. The book is interesting in many ways. First of all, it communicates many complex concepts in very simple terms. For instance, a concept like “Bubble” which is often discussed in the world of finance is described by Housel as “The formation of a bubble isn’t so much about people irrationally participating in long term investing. They are about people somewhat rationally moving towards short-term trading to capture the momentum that has been feeding on itself”. This is just one example. The book is full of pearls of wisdom. There is nothing that can match a statement like “The only way to win in a Las Vegas casino is to exit as soon as you enter”.

Let me come to some of the most amazing insights that the book provides. The book talks about the difference between getting wealthy and staying wealthy. The author says that many people acquire wealth but fail to preserve wealth and hence it is important to learn how to preserve wealth. As per Housel,” Preserving wealth requires humility and the fear that what you have made can be taken away from you just as fast. It requires frugality and an acceptance that at least some of what you have made is attributable to luck, so past success cannot be relied upon to repeat indefinitely.” The author talks in detail about the role of luck in investing in many places in the book. He quotes his conversation with Robert Schiller, winner of the Nobel Prize in Economics, to whom he once asked, “What do you want to know about investing that we can’t know?”. In response to this question, Schiller said, “The exact role of luck in successful investing”.

The author keeps on surprising with his wonderful understanding of money in different chapters of the book. But the exclusive chapter on saving, which is chapter 10, has many interesting aspects about savings. Emphasizing the significance of savings, the author says “The first idea- simple, but easy to overlook-is that building wealth has little to do with your income or investment returns, and lots to do with your savings rate.” He adds that you don’t need a specific reason to save. He has also mentioned something which is an eye-opener. Past a certain level of income, what you need is just what sits below your ego. The author also highlights the need for knowing what is enough, when it comes to money.

In brief, you must read this book irrespective of how much you understand about money. There is something for everybody in this book.

24 people found this helpful

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Raj

1.0 out of 5 stars It's Not a Book Review.....It's a Quality of Printing Issue with the Book I received

Reviewed in India on 2 October 2020

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As you can see from the photos the book has not been Printed Properly, the Book is Sort of Torn in the Middle...Not Happy with the Book copy.....Book Review I will update later after Reading

11 people found this helpful

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Vincent V.

5.0 out of 5 stars Excellent read

Reviewed in India on 25 November 2020

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One of the best most grounded books on money and investments I ever read. This book assumes that you are human and therefore likely to make errors of judgment and practical mistakes, unlike some other books that probably assume that you are perfectly rational and logical about money. Great perspective along with being fairly easy to read and understand. Highly recommended. Congratulations to Morgan Housel this is a wonderful achievement.

7 people found this helpful

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Top reviews from other countries

Missouri

5.0 out of 5 stars I wish if I have read this book 20 years ago!!

Reviewed in the United Kingdom on 11 December 2020

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In less than 200 pages Morgan Housel succeeded through several short stories about money and business management to provide learned lessons.
The book uses plain English, easy to read and to understand.
He exposed many myths and fake assumptions in the business world, especially the dilemma of luck vs. talent.
It is fascinating to know for example that Bill Gates studied in the only high school in the US that by luck had a computer in 1968, one in a million chance.
Chapter 19 is like a summary of major ideas but there are some interesting ideas to think about and we may agree or disagree with it:
1. "You are one person in a game with 7 billion other people and infinite moving part", so we underestimate significantly the role of luck and world complexity.
2. "Saving is income minus ego" so be careful with your ego spending!
3 "Happiness has resulted minus expectations", so be careful with your expectations!
3. "Individual wealth is what you don't see, hidden" so big houses, fancy cars, or Instagram photos are spends or debts of individuals, the visible part you see, not their wealth.
4. "Customer is always right" and "customers don't know what they want", both accepted business wisdom.
5. Napoleon’s definition of a military genius was, “The man who can do the average thing when all those around him are going crazy.”

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32 people found this helpful

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Okenna

4.0 out of 5 stars An instant favorite

Reviewed in the United Kingdom on 22 December 2020

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I thoroughly enjoyed reading this book. If you've been in or around finance, the wisdom contained in this book may not exactly be new to you but it is still great to re-learn some of these things or at least to hear it from someone else. I'll definitely read the book again.

I've rated the book 4* and not 5* because I found a lot of the examples to be US/American focused. The world has changed. Morgan has not written with a global audience in mind or even a global perspective. This is not necessarily a bad thing if that's the intended audience, however, I am not American and have only visited the country once, so I found that examples or cases from other countries might have helped a bit. Either way, a great read written in straightforward language.

9 people found this helpful

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Striver

5.0 out of 5 stars On the Ball

Reviewed in the United Kingdom on 26 September 2020

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Housel is on the ball with this book. Worth re-reading a few times.
Favorite concept:
"Every bit of savings is like taking a point in the future that would have been owned by someone else and giving it back to yourself" - That's priceless advice from Morgan.

8 people found this helpful

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AfshinGanji

5.0 out of 5 stars The single best book on the subject!

Reviewed in the United Kingdom on 29 December 2020

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I have read many books on the subjects of psychology and finance but have to say that this is the best book by far! I often highlight interesting parts to review later and must admit that this book is almost entirely yellow! Housel has an amazing ability to distill complex ideas into everyday useful bits of information. I cannot recommend this book highly enough. After reading it twice already I can honestly say I would have happily paid a lot more for this book!

5 people found this helpful

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Sathish

5.0 out of 5 stars A must-read book

Reviewed in the United Kingdom on 16 October 2020

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An interesting book on the world of finance and money and how various events and perceptions come to play in this world. While some chapters are a bit dry than others, overall the author provides an excellent psychological view on money matters. I would strongly recommend reading this book for a general understanding of the world of money and the insights will help to make informed decisions.

3 people found this helpful