Book – The Psychology of Money
Author– Morgan Housel
Genre – Non-Fiction
I would not generally read a book like The Psychology of Money because any book on money does not really excite me. However, when my boys recommended it to me, and I also heard a lot about it from friends, I decided to give it a shot. And am I glad I did that?!
The Psychology of Money by Morgan Housel is a fascinating book that takes a deep dive into the psychology behind money and how it affects our actions, decisions, relationships and behaviour.
At the outset, we all need to accept that everyone needs money and wants to make money. However, most of the time, those not good with numbers, which happen to be many of us, don’t take that road because we feel unable to do it because of our lack of mastery over numbers and calculations. This is the myth that the book shatters into a million pieces.
The book is not your average ‘How to make Money’ kind of book. Instead, it takes you behind the scenes and shatters several misconceptions and beliefs about money.
It offers a very different and unique perspective on the concept of money and the way people view it.
According to the book, people’s views of things in life result from their experiences. Since we all have different backgrounds and experiences, we react to things differently, including money. Not only that, but sometimes we respond to similar situations differently. While money is something everyone can relate to, making money has always seemed like a complex process. This intimidates many people and makes them believe it is not their cup of tea.
Morgan Housel shatters this belief and makes the process seem more real, humane and reachable. As per this book, managing money, investing it, and all business decisions related to it are not always about complex mathematical calculations. Instead, they depend on factors like behaviour, emotions, personal experiences, ego, pride, marketing, or any set of factors that build a narrative that works for the person. Financial decisions are not always logical.
To illustrate these points, the author uses short stories that give the reader insights into how different people think about money and make decisions based on their beliefs.
What I like about the book is how Housel has made the concept of money less intimidating and more relatable. He makes the art of making money within everyone’s reach by showing that financial skill is a soft skill that anyone can have irrespective of their education or training.
‘Financial success is not a hard science. It’s a soft skill where your behaviour is more important than what you know.”
As per the author
You don’t have to be educated in the best of schools to be able to make money. Even someone with a basic level of education can do that, provided they are patient, consistent and resilient in their efforts.
The Psychology of Money is a must-read for everyone, age being no bar. The language of the book is simple and easy to understand. The short stories make the book relatable and engaging. The interesting and thought-provoking insight into the psychology behind people’s financial decisions makes the book a winner.
I recommend this book to young people beginning their journeys to help them understand that money-making is not impossible. Everyone can do it.
Even people who consider themselves financial wizards should read the book to understand the psychology of money; the soft skills needed to make money. Money is not only about calculations and spreadsheets. It is more than that.
I would give the book a rating of 5/5.