The World's Best Book Summaries
Can money buy respect? Do you respect people who have luxurious cars or expensive houses? According to Morgan Housel, the author of The Psychology of Money, money flexing with status symbols won’t buy you respect. People may be in awe of your sports car or your Rolex, but they’re admiring the item, not you. Here’s why you should only buy something expensive if it’s for you, not to flex on others.
Do you have an emergency savings fund? Why is it important to plan for financial emergencies? Many people have the mindset of “it couldn’t happen to me.” But the truth is, sudden financial emergencies can happen to literally anybody—they’re unpredictable in their nature. That’s why it’s so important to start saving for emergencies, so you’re prepared for things to go wrong. Here’s why you should plan for things to go wrong.
Is Morgan Housel’s The Psychology of Money worth reading? What is the key message to take away from the book? Most of us assume financial success depends on education and intelligence. But in The Psychology of Money, finance expert Morgan Housel presents an alternate hypothesis: The key to financial success lies in understanding human behavior. Here’s our The Psychology of Money review, including background, context, and critical reception by the readers.
How would you describe your relationship with money? Why do so many people act in so many different ways when it comes to money? According to Morgan Housel in his book The Psychology of Money, every person has a different relationship with money based on a few factors: what you live through, the financial climate, unemployment rates, etc. That’s why, no matter how much financial advice is out there, people will continue to act on what feels right to them. Here’s why subjective rationality plays a huge role in your views of money.
What is The Millionaire Fastlane by MJ DeMarco about? Which formula is the best to achieve financial freedom and wealth? In The Millionaire Fastlane, MJ DeMarco goes over the three common approaches to finances: consumption, accumulation, and production. DeMarco discusses each approach in detail and explains which approach is the best if you want to build wealth. Continue reading for an overview of the three formulas from The Millionaire Fastlane.
Are you an optimist or a pessimist when it comes to money? Why does financial optimism work better than financial pessimism? In his book The Psychology of Money, Morgan Housel says that you should remain optimistic when it comes to finances and investing, no matter what others say. He outlines three reasons why financial pessimism often seems like the smartest route but isn’t. Keep reading to learn why an optimistic view on finances and investments is beneficial.
Do you allow personal finance stories to change how you use your money? Do finance stories scare you away from making certain decisions or inspire you to invest in certain things? According to Morgan Housel, the author of The Psychology of Money, falling for financial success stories can cause you to make poor financial decisions. Listening to the personal finance stories of others can influence you to risk your financial health based on hope, or even make you think that you have more control than you actually do. Here’s why you should be careful what stories you believe about money.
Do you ever make purchases even though you know they will put you in debt? Do you know how spending more than you earn can affect you for years to come? In his book The Millionaire Fastlane, MJ DeMarco discusses insatiable consumption, or the never-ending desire to spend money. While spending money isn’t fundamentally a bad thing, if you spend more than you earn, you are dooming yourself to a lifetime of poverty. Here’s why you should think twice before buying things you don’t need.
What’s the traditional formula for wealth? Does the formula work? What uncontrollable factors doesn’t it account for? In The Millionaire Fastlane, multimillionaire entrepreneur and investor MJ DeMarco challenges conventional wisdom about how to create wealth. He says that the traditional formula for wealth—getting a stable job and investing—may work, but it’s not necessarily going to make you happy. Here’s why you should re-think your financial plan.
What does it mean to have a survival mentality around money? What three ideas around money should you develop? In his book The Psychology of Money, Morgan Housel suggests developing a survival mentality around money. This means accepting that you could lose all your money at any time, so you follow certain steps to ensure you protect your assets. Here are the three steps for developing a survival mindset.