The Psychology of Money by Morgan Housel — My Key Takeaways

1) If you want to be wealthy, attitudes and behaviours > income and talent

This is a great read, and an easy recommendation if you enjoy non-fiction or are trying to define your philosophy when it comes to personal finance. Words in bold correspond to chapter titles.

• Introduction: Here is my one-line takeaway of the book: Your wealth depends more on your attitudes, behaviours and habits around money than your earning capacity, talent, and fame.
• (A great story here: the Janitor and the Millionaire).
• Luck and Risk: They are two sides of the same coin — if you respect one, you must respect the other.
• Don’t overweight outliers — there’s likely to be a role of luck that you can’t reliably emulate. Easier to learn from the average outcome. Nothing is as good or as bad as it seems — luck was involved.
• Never Enough: The hardest financial skill is to get the goalpost to stop moving. But if your expectations don’t grow slower than your income, you will never be able to have enough.
• Confounding Compounding: Good investing isn’t about earning the highest returns but about earning pretty good returns repeatedly for the longest period of time. See Warren…