‼️ The Psychology of Money by Morgan Housel ‼️

48/∞

“Controlling your time is the highest dividend money pays.“

Rating: ⭐️⭐️⭐️⭐️

👉 Buy this book! 👈 through my link and help me build this website! 😊

📚 Length: 256 pages

🔊Audiobook: 5 hours and 48 minutes

Why you should read this book?

💡 This book offers level-headed approach to money.

💡 Reminds that: To spend less today gives you more options in the future.

💡 Money = freedom.

As you guys know, I’m a big fan when it comes to investing and multiplying monies… 🤩 This book does not dive into the practical advices such as useless investing formulas. It actually criticises the books like The Intelligent Investor by Benjamin Graham (also reviewed by Der Kaiser 👑), which are full of hard knowledge, concrete examples and investing formulas. Interestingly enough this book mentions that The Intelligent Investor was slightly changed in each published edition by the author himself (and there were at least 5 of them). He would have then taken out the investing formulas which were not working anymore and replace them by the formulas which were up-to-date. Graham would do so until his death in 1970’. The problem is that majority of those formulas do not work toady, they are simply outdated.

The sad truth is that different portfolios perform differently based on the economy and times we live in. So what was performing well in 1950’ might not perform well now and vice versa.

…

This book also reminds a sad truth about hedge funds. I mean if some manage to gain 16% increase in their portfolios, it is a rather unique success, because only one of 10 hedge funds reaches that sort of potential.

This book then comes to the conclusion that it is necessary to gain 16% increase per annum as to have steady and reasonable increases which repeats themselves over for long periods of time.

“Good investing isn’t necessarily about earning the highest returns, because the highest returns tend to be one-off hits that can’t be repeated. It’s about earning pretty good returns that you can stick with and which can be repeated for the longest period of time. That’s when compounding runs wild.“

I mean I kind of agree on that. Markets sometimes act like a schizophrenic on a rollercoaster. 🙂 You might question that, current inflation in the EU 🇪🇺 is at least 10%. In the Czech Rep. 🇨🇿 it is currently 25%. Well the government says 17.5 % but all governments lies and the Czech one is no exception. But the inflation goes down over a certain period of time and one day it will be 3% again.

The truth is that whatever you buy, it might be hard to get rid of it. I’m talking houses, cars and all other bullshit. Everybody wants money more then the actual things. In case you need money quick then you have to go down with the price, because the deal has to be irresistible.

My suggestion is that you keep money and invest them and be content with 10% annual growth. Then you take some “fuck you“ money and invest them to some new crypto projects and see what happens in 10 years.

“Doing well with money has a little to do with how smart you are and a lot to do with how you behave.“

I’m slowly coming to the point that this book focuses rather on soft skills with money. You can say it is philosophical. It reminds you that keeping your spending behaviour is the main driver for having money and hence the freedom! 🇺🇸🦅

One sentence in this book really stuck with me: “Controlling your time is the highest dividend money pays.“

There are tons of people out there who are slaves to their property and their jobs. They cannot break free unless they start investing and putting a little bit on the side every month.

“Beware taking financial cues from people playing a different game than you are.“

This book also draws readers attention to the point that following advice of some super rich dudes like Jeff Bezos, Elon Musk or Martin Hausenblas actually might not work for you.

“There is no reason to risk what you have and need for what you don’t have and don’t need.“

The book also speaks about taking financial risks. The conclusion is that if you cannot play it safe, it is usually not worth it. 😉

Kaiser’s Verdict: 👍

In terms of my verdict. I appreciate that the author kept this book short and straight to the point. On the other hand in comparison to Robert’s Kiyosaki’s Rich dad and Poor Dad (also reviewed by Der Kaiser 👑) it does not incorporate much of novel information. But if you have never ever read anything on investing and you are considering this to be your first book on finance, then I think you would give is a nice 5 star ⭐️ rating.

⭐️⭐️⭐️⭐️

👉 Buy this book! 👈 through my link and help me build this website! 😊

Feel free to like, share and comment or recommend books/courses you find inspirational yourself. I’m keen to hear about them.

Coming Up Next: 

TBC ✌️

Peace 🧘‍♂️✌️🌱