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Psychology Of Money : By Morgan Housel : Book Review

 This book is for all those students and workers who wants to get out of their financial struggles and get a comfortable lifestyle. Plus for those who don't know how to keep their wealth growing and not degrading.

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"Doing well with money isn't necessarily about what you know. It's about how you behave. And behaviour is hard to teach, even to really smart people."

Author: Morgan Housel is a partner at The Collaborative Fund and a former columnist at The Motley Fool and The Wall Street journal. He is a two time winner of the best in Business Award from the Society of American Business Editors and Writer, winner of the New York Times Sidney Award, and a two time finalist for Gerald Loeb Award fpr Distinguished Business and Financial Journalism.

You might think "What behaviour got to do with making and handling money or becoming rich?"

To this, I would like to answer you with a passage from the Introduction chapter of the book: A genius who loses control of their emotions can be a financial disaster. The opposite is also true. Ordinary folks with no financial education can be wealthy if they have a handful of behavioural skills that have nothing to do with formal measures of intelligence.


If you are someone new to the concept of Investment, Money management, or someone who wants to not only earn but also grow your wealth then you should read this book.

Why I should Read This Book?

After reading this book you'll be able to understand and  get answer to the following questions:
1. How Money Works?
2. How luck and Fate are related to the Money?
3. How and Why rich people get bankrupt?
4. Why staying wealthy is more important than Getting Wealthy?
5. How you don't have to be right all the times to make a fortune?

The reason I gave it 5 out of 5 stars is because: even though this book mainly focuses on solving money related problems, like saving , growing and keeping money. Some of the lessons from this book are really amazing for different parts of our life. 
For example: In chapter 13 Room for error, The author says "The most important part of every plan is planning on your plan not going according to plan" 
This advice can be used not only in investment, business related matters but also in all fields while making plans to achieve something.
And the plus point is, it is really well written in simple words, which makes it easier to understand and keeps us focused with some interactive stories and conversations.

Mine most favourite concept from this book is : "Good investing isn't necessarily earning highest returns, because the highest returns tend to be one off hits that can't be repeated. It's about earning pretty good returns that you can stick with and which can be repeated for longest periods of time.

Special Quotes From The Book:

"A genius is the man who can do the average thing when everyone else around is losing their mind" - By Napolean.

"The World is full of obvious things which nobody by any chance ever observes." - By sherlock Holmes.

"Some Lessons have to be experienced before they can be understood."- By Investor Michael Batnick.

"It is not necessarily the amount of snow that causes the  ice sheet but the fact that snow, however little, lasts."- By Glaciologist Gwen Schultz. 




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