Psychology of Money: The Book 2022 Outreach.SALE review

Psychology of Money: The Book

The book is about the correct approach to using and increasing money. Scales well for any pocket.

The Psychology of Money: Timeless Lessons on Wealth, Greed, and Happiness

Nobody is crazy. If someone seems to be like that, you just don’t know their full context.
There are many drivers in the world of finance, but in our history we will personally experience only a subset. What we personally experienced in the moments of our formation (in terms of markets and economic conditions) is completely coincidental. But these experiences have a significant impact on our financial strategies. Therefore, different, completely sane and adequate people have completely different views on what is good and what is a disaster.

Nobody is crazy 🤪

For example, Ruslan, who grew up in the 90s and experienced hyperinflation, does not believe in the fixed price of paper money, and is more likely to invest in Bitcoin than some dude who grew up in Switzerland. Ruslan, who grew up in the 90s, saw extreme volatility, it is comfortable for me, and therefore I am more likely to invest in a wide portfolio of super-risky instruments, I just do not believe that stability exists at all. I rather believe that the middle between the super-risky assets will give a higher return than “reliable” instruments.

While people may read about each other’s experiences, it doesn’t come nearly as closely as the direct experience of loss and gain. We still do not know about the totality of those surprises that the market throws up, even if we read about them. We will not perceive this without personal experience.

As the right decisions so the randomness affects the outcomes, it is difficult to isolate one from the other.
Extreme success stories are not good examples to follow. in any extreme example, randomness was definitely present, otherwise there would be no extreme. The more a dude is “the absolute top in the world”, the less his success story is suitable for learning. Lottery winners are also likely to advise “buy a ticket!”

Business Ebooks

Ruslan’s opinion: for example, Trump is considered successful, but he was bankrupt four times. His extreme willingness to take risks plus the fact that he was lucky in this risk in a row led to the situation that he put his entire fortune several times on “red” in the casino. And five consecutive doublings gives a multiplier of 32, and its chance is 1/32. Therefore, out of 32 such players, there are 31 unknown bankrupt and one known to us Trump. Which, perhaps, in the “top” is not from a positive mate. expectations, but from the banal readiness to play Russian roulette.

An example of good practices is best taken from the successful average. Their luck was probably balanced in different directions, the state was built as a result of many interactions, and the result speaks more about the effectiveness of techniques than about luck.

You shouldn’t go all over the place for “points in the game”. Adequate money comes very early. But people ruin their time, and sometimes risk a crime, for the sake of not fundamentally changing anything.
The one who has enough is rich. The easiest way to influence this is through the definition of “enough”. I can definitely say that there were times in my life when I had much more $$$ than my friends, but they were less dependent on money, and therefore richer and freer.

The main thing that money gives is freedom. The main component of happiness is the freedom to do what you want, when you want, with whoever you want.

Lack of a sense of control over life and lack of friends are the path to neuroses.
A fundamental shift in the quality of life is the moment when there is enough money for free decision-making, and not for some super-quality life. That is, making money for independence is yes. Making money for a big yacht is bullshit, not a goal. When there is enough money for freedom of choice, more money does not bring happiness.
Wealth is more determined by interest you don’t spend than income on investments. Expense controls are more realistic than income controls. Control = happiness. Any standard of quality of life easily becomes the norm, if not expand it.

People want to buy an expensive car or a cool watch, but what they really want is to be respected and loved by others. You will not be respected and loved for Ferrari. And the head will not turn at you, but at the wheelbarrow. For a modest character, good deeds and free will – yes, they will love and respect.

You should not be in an extreme situation, both in terms of costs and savings, as a focus on work and personal life. People who are in the extreme mode jump off this extreme more and more painfully.

People often outweigh entertainment or work in the early part of life, only to radically change everything later (I’ll say to myself: I just didn’t work without a day off – without an hour off all my youth. And of course, the need to compensate happens).

Better to be in balance.

The “sunk costs” rule also works in life: if you’ve invested in something your whole life, but it doesn’t work and won’t work, you need to be willing to give up and move on. The same is with financial goals that have already lost their relevance.