Master the Psychology of Money in 5 Minutes

We all care about money, and that’s why we work. Unfortunately, schools don’t teach us enough about how to make, manage, and multiply money, so money is often misunderstood. Luckily, there are excellent books that have been globally applauded to help us understand wealth, but reading them takes time that many of us don’t have because we are busy chasing money.

Hence, I will share with you the key lessons from one of such must-read books titled The Psychology of Money by Morgan Housel. And wow, after reading this book, it feels like someone flipped on a light switch about handling your personal finances to create wealth.

The book breaks down how we think, feel, and behave around money. So, take your time to follow this closely as I share the juicy takeaways from the book (and trust me, you will find them valuable, too).

1. “Financial success is not a hard science. It’s a soft skill.”

This quote hit me like a tonne of bricks. See, your technical knowledge or business title is not what determines financial success—it’s your behaviour. Take the story of Ronald Read, the manager who made over $8 million by consistently investing and letting it grow. Housel emphasised that “Your behaviour with money is often more important than how intelligent you are.”