Money Archives

Buying a House Below Market Value Is Smart Investing

What are the benefits of buying a house below market value? How does it affect your real estate investment plan? If you’re using David M. Greene’s BRRRR method from his book Buy, Rehab, Rent, Refinance, Repeat, then you need to start by buying a house below market value. The BRRRR method emphasizes buying cheap properties because you can easily recover your investment later when selling the home. Let’s look at how buying a house below market value can make you more money, and how to find a good deal out of it.

The Psychology of Money: Quotes by Morgan Housel

Looking for quotes from The Psychology of Money? What is the secret to financial success? Most of us assume financial success depends on education and intelligence. But according to Morgan Housel, the author of The Psychology of Money, the key to financial success lies in understanding human behavior. Here’s a selection of passages highlighting some of the key ideas.

Investment Failures: Don’t Let Them Hold You Back

Have you ever made an investment that didn’t turn out the way you expected? What should you do if your investment fails? It’s easy to become discouraged when things don’t go as planned, especially when your money is on the line. However, that doesn’t mean you shouldn’t take risks. Investment failures do occur, fairly frequently, but if you keep trying, you could get lucky enough with one investment that it outweighs any failures. Here is why you shouldn’t let failure hold you back from trying again.

The Psychology of Money: Book Overview

What are the top financial lessons from Morgan Housel’s The Psychology of Money? How can this book help you change the way you view money and wealth? In his book The Psychology of Money, finance expert Morgan Housel argues against the conventional wisdom about financial success. He says that the key to financial success lies not in hard work and intelligence, but in understanding human behavior. Housel posits that when you understand how emotions and beliefs influence your financial decisions, you’ll make better financial decisions. Here’s a brief overview of the key themes.

The Power of Compound Interest: Grow Your Money

Did you know that you can use your money to make more money? How does putting even a small amount into an account that accrues compound interest help you grow your money? In his book The Psychology of Money, Morgan Housel discusses the power of compound interest. The key to maximizing your returns, Housel explains, is to invest as soon as possible and let your money grow over time. Here’s why compound interest is the best way to maximize your income and build wealth.

Success Is Luck, Not Hard Work or Know-How

Is financial success a matter of luck or know-how? What plays a bigger role? There are so many memoirs and self-help books out there by millionaires that teach readers how to follow in their footsteps—”they got rich by following these steps, and you can too!” However, what these books fail to account for is the role of chance in financial success. Here’s why success is luck, according to behavioral finance expert Morgan Housel.

You Can’t Make Financial Predictions Based on the Past

Do you look to history when trying to make financial decisions? Why is trying to make financial predictions based on past events a terrible idea? In his book The Psychology of Money, Morgan Housel says that many people will study past events in order to make financial predictions. However, Housel explains, this strategy doesn’t work because history is a series of unpredictable events, and studying it will not help you predict the future of finances. Here’s why you can’t use the past to make financial predictions.

Follow Your Personal Financial Goals—Not the Herd

Where do you see yourself in the future financially? Do you have a financial goal you’re striving for? According to Morgan Housel’s book The Psychology of Money, you should know your personal financial goals, otherwise, you may find yourself making decisions that don’t align with your goals. For example, short-selling stocks may work for some people, but it wouldn’t work with a long-term compounding plan. Here’s why it’s important to follow your own financial goals.

How Much Money Is Enough?—Greed Is a Fine Line

How much money is “enough”? Is there a point at which you should stop taking risks and enjoy what you have? People who say “money doesn’t buy happiness” are wrong—money can make you happier, up to a point. However, once you make enough to live a comfortable life, money can become a trap. Some people become so greedy in their desire to keep making more that they risk losing everything they have. Here’s how to be happy with having “enough.”

What Is the Difference Between Rich and Wealthy?

Is being rich and being wealthy the same thing? If not, then what is the difference between rich and wealthy? Contrary to popular belief, being rich and being wealthy is not the same thing. Being wealthy means you have a lot of money in the bank while being rich means you have a high income. But, just because you have a high income does not mean that you use your money wisely—money can disappear as fast as it appears if you aren’t responsible. Here is why making a lot of money doesn’t mean you’re wealthy.