I can assume that each person reading this has got a slightly different relationship with money. Notice that I didn’t use the words ‘background’ or ‘history’ because after reading the book The Psychology of Money, it’s become clear to me that your mind and your money are more connected than most people think.
I’ve come to this conclusion because of how Morgan Housel addresses this relationship. According to the author, our relationship with money differs for each person, and our experiences shape our view on money sometimes even instead of the actual reality.
Toxic Relationship
Instead of our relationship with money being connected to our mind, we tend to connect it to other things, leading to an unpleasant outcome. Often pride, greed and hastiness, to name but a few, are connected to our relationship with money.
Revision Again
I’ve read this book once before and decided to pick it up again because I’ve come to realise this year that revision is often better than continuous consumption. The extra highlights that I made this time around was clear evidence that re-reading the book had not been a waste of time.
Evaluation Time
The Psychology of Money helps the reader evaluate behaviours that lead to a disconnection between their mind and money. It does this by offering wisdom, facts, and examples, allowing the reader to see the good parts of their relationship with money and also to learn to remove the hurdles that caused a negative money mindset.
Learning from the Rich
My favourite thing about the book is the analysis of Warren Buffet’s life. The author uses Buffet’s life mainly not to teach the reader about investment or the economy but to teach the reader that the real way to attain wealth is ‘boring’ and is linked to the old-fashioned principle of slow and steady wins the race. In the book, Morgan Housel shares many anecdotes to help widen the reader’s understanding of money and to show how even the rich have got it wrong at times.
Looking Back
As a social history enthusiast, it was also inciteful to read about how events like WWII created different money mindsets depending on location. The effects of the war on America differed vastly in contrast to Japan and as a result, caused different views on how money should be treated amongst each population.
Misconception Override
The Psychology of Money is not about getting rich quickly. It’s not even about getting rich. The book is about helping the reader understand their own misconceptions they might have about money and understand how these misconceptions can even begin to develop once wealthy. (Let’s be honest, we have all heard of someone who won the lottery and sadly lost it all.)
The book is about helping the reader gravitate towards the right behaviours so that money does not control them or their every move but for the reader to use money for what it is: a currency. So, I guess the question for you is, what type of relationship exists between your mind and your money?
Title: The Psychology of Money: Your Mind and Your Money
Author: Leonie Thomas
Date Published: 31.10.2023
Leonie Thomas 