The Psychology of Money examines our behaviour with personal finance with a human perspective. While it talks about similar topics such as how the stock market works, how to select stocks or build a portfolio, how to time the market, yada yada yada, the author’s focus largely remains on how humans react to money differently in different situations.
Through the book Housel is convinced that our behaviour is what makes or breaks our fortune and that has very little to do with how smart we are with it, our intelligence quotient and many other factors that make us mortal beings.
Our experiences color our judgment, but so does the information passed on to us from generations. What makes the book a very interesting read is its accessibility across the financial spectrum.
Whether you are someone who comes from generations of wealth or a first generation ration wealth builder, this book is equally relevant to you. While this book will not transform your life or suddenly flush you with the sense of undying optimism, the book is surely one to nudge you in the direction of thinking about your relationship with your money - And that, to all of us, is a pretty darn good start!
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