The Psychology of Money
Your personal experiences with money make up may be 0.00000001% of what’s happened in the world, but maybe 80% of how you think the world works.
- The hardest financial skill is getting the goalpost to stop moving.
- Social comparison is the problem here.
- Enough is not too little. Enough is realizing that an insatiable appetite for more will push you to the point of regret.
- There are many things never worth risking, no matter the potential gain.
- Compounding. $81.5 billion of Warren Buffett’s $84.5 billion net worth came after his 65th birthday.
- Good investing is not necessarily about making good decision. It’s about consistently not screwing up.
- You can be wrong half the time and still make a fortune.
Controlling your time is the highest divident money pays. Spending money to show people how much money you have is the fastest way to have less money. The most important part of every plan is planning on your plan not going according to plan.
Get out of your way to find humility when things are going right and forgiveness/compassion when they go wrong.
Less ego, more wealth.
Manage your money in a way that help you sleep at night.
If you want to do better as an investor, the single msot powerful thing you can do it increase your time horizon.
Become OK with a lot of things going wrong. You can be half wrong the time and still make a fortune.
Be nicer and less flashy.
Save. Just Save. You don’t need a specific reason to save.
Define the cost of success and be ready to pay it.
Worship room for error.
Avoid the extreme ends of financial decisions.
You should like risk because it pays off over time.
Define the game you’re playing.
Respect the Mess.