Your best shot at keeping what is invaluable is knowing when it's time to stop taking risks that might harm them Knowing when you have enough.""Enough is realizing that an insatiable appetite for more will push you to the point of regret.

Be Greedy

Understand your own game, create your own strategy. Your needs are different."Beware taking financial cues from people playing a different game than you are."

Play Your Game

You should like risk because it pays off over time. But you should be paranoid of ruinous risk because it prevents you from taking future risks that will pay off over time."Good investing is not necessarily about making good decisions. It' about consistently not screwing up."

Risk Everything

"Pessimists extrapolate present trends without accounting for how reliably markets adapt.""Save like a pessimist and invest like an optimist."

Invest Like Pessimist

<a href="https://wealthoperators.beehiiv.com/subscribe">Wealth Building Guide - 50+ FREE Resources on Money, Investing & Personal Finance.</a> (It's free)● FREEDOM AS A GOALIndependence is the best financial goal."Controlling your time is the highest dividend money pays.﻿"● SLEEP WELLManage your money in a way that helps you sleep at night. That's different from saying you should aim to earn the highest returns or save a specific percentage of your income.The highest form of wealth is the ability to wake up every morning and say:"I can do whatever I want today."

Timeless Lessons On Wealth, Greed & Hap

Predicting what you'll use your savings for assumes you live in a world where you know exactly what your future expenses will be, which no one does."The most important part of a plan is having a plan for when the plan is not going according to plan."

Always Have Room For Errors

People's ability to save is more in their control than they might think."Building wealth has little to do with your income or investment returns, and lots to do with your savings rate."

Save Money

"Long-term planning is harder than it seems because people's goals and desires change over time."Sunk costs - anchoring decisions to past efforts that can't be refunded- are a devil in a world where people change over time.

You Will Change

How much money you have is the fastest way to have less money.No one is impressed with your possessions as much as you are."Saving is the gap between your ego and your income."

Try To Show How Rich You Are

“Money’s greatest intrinsic value—and this can’t be overstated—is its ability to give you control over your time.”

The secret to investing is the power of compound interest. Be patient and enjoy the compound effect."The most powerful and important book should be called Shut Up And Wait. It's just one page with a long- term chart of economic growth"

Wait For Compound Effect

“Spending money to show people how much money you have is the fastest way to have less money.”

Uncertainty, doubt, and regret are common costs in the finance world. But you have to view them as fees (a price worth paying to get something nice in exchange) rather than fines."Sometimes it rains at Disneyland. But if you view the admission fee as a fine, you'll never enjoy the magic. Find the price, then pay it."

Pay The Pr

“Saving is the gap between your ego and your income.”

Luck and misfortune are part of life. Don't get carried away with one and be prepared for the other."More important is that as much as we recognize the role of luck in success, the role of of risk means we should forgive ourselves and leave room for understanding when judging failures."

Respect The Role Of Luck

"It's not whether you're right or wrong that's important." George Soros once said"but how much money you make when you're right and how much you lose when you're wrong. You can be wrong half the time and still Imake a fortune."

You Can Be Wrong

“Planning is important, but the most important part of every plan is to plan on the plan not going according to plan.”

<ul><li>Try to show how rich you are</li><li>Be greedy</li><li>Risk everything </li><li>Invest like a Pessimist </li></ul>

Avoid These Mistakes And Bad Beh

<ul><li class="ql-align-justify">Save Money</li><li class="ql-align-justify">Wait for the compound effect</li><li class="ql-align-justify">Play your game </li><li class="ql-align-justify">Respect to role of luck</li><li class="ql-align-justify">Pay the price</li><li class="ql-align-justify">You can be wrong </li><li class="ql-align-justify">Always have room for errors </li><li class="ql-align-justify">You will Change</li></ul>

How To Make Better Financial Deci

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. Money—investing, personal finance, and business decisions—is typically taught as a math-based field, where data and formulas 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 own unique view of the world, ego, pride, marketing, and odd incentives are scrambled together. In The Psychology of Money, award-winning author Morgan Housel 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 topics.

moneyandinvestments

Money & Investments

books

Books

Morgan Housel is a partner at The Collaborative Fund. He is a two-time winner of the Best in Business Award from the Society of American Business Editors and Writers, winner of the New York Times Sidney Award, and a two-time finalist for the Gerald Loeb Award for Distinguished Business and Financial Journalism. He lives in Seattle with his wife and two kids.

MORGAN HOUSEL

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