Saving is the gap between your ego and your income -Morgan Housel

• Financial success is far more about how you behave than what you know.
• Doing well with money has a little to do with how smart you are and a lot to do with how you behave. And behavior is hard to teach, even to really smart people.
• Financial outcomes are driven by luck, independent of intelligence and effort.
• Getting wealthy and staying wealthy are two different skills. Getting wealthy requires risks and being optimistic. Staying wealthy requires caution and paranoia.
• Luck and risk play a role in almost all outcomes. Individual effort can only get you so far.
• Be careful about looking at specific examples of outcomes, and look more for general patterns.
• Some lessons have to be experienced before they can be understood.
• Every financial decision a person makes, makes sense to them in that moment and checks the boxes they need to check. They tell themselves a story about what they’re doing and why they’re doing it, and that story has been shaped by their own unique experiences.

• The hardest financial skill is getting the goalpost to stop moving. And to do that, you have to stop comparing yourself to others, and start determining what is "enough" for yourself.
• One of the single most important things you can do as an investor is wait, or extend your time horizon.
• Staying wealthy requires some combination of paranoia and frugality.
• Luck and risk are siblings. They are both the reality that every outcome in life is guided by forces other than individual effort.
• Nothing is as good or as bad as it seems.
• Luck and risk are both the reality that every outcome in life is guided by forces other than individual effort. They are so similar that you can’t believe in one without equally respecting the other. They both happen because the world is too complex to allow 100% of your actions to dictate 100% of your outcomes.
• Always plan for something to go wrong, and for some large, unexpected expense.
• Controlling your time is the highest dividend money pays.
• No one is impressed by your possessions as much as you are.
• “The customer is always right” and “customers don’t know what they want” are both accepted business wisdom.

• Building wealth has little to do with your income or investment returns, and lots to do with your savings rate.
• Past a certain level of income, what you need depends only on your ego.
• The difficulty in identifying what is luck, what is skill, and what is risk is one of the biggest problems we face when trying to learn about the best way to manage money.
• Bill Gates once said, “Success is a lousy teacher. It seduces smart people into thinking they can’t lose.”
• There is no reason to risk what you have and need for what you don’t have and don’t need.
• Aim to be reasonable with your finances, not completely rational. This will be more realistic long-term.
• Never Enough:
  > The hardest financial skill is getting the goalpost to stop moving.
  > Social comparison is the problem here.
  > “Enough” is not too little.
  > There are many things never worth risking, no matter the potential gain.

• We can't predict future outlier events. That's what makes them outliers. So factor it into your plan.
• You need to add room for error, and avoid financial ruin. Leverage-going into debt-pushes routine risk into potential for ruin.
• Assume your priorities will change in the future, and avoid the extremes of financial planning. Examples include assuming you'll be happy with very low income, or willing to work very long hours for higher income.
• Happiness, as it’s said, is just results minus expectations.
• Everything has a price. The price of immediate consumption is much more visible than the price of neglecting long-term investment.
• Know what game you are playing, and avoid taking financial cues from people playing a different game.
• More than 2,000 books are dedicated to how Warren Buffett built his fortune. Many of them are wonderful. But few pay enough attention to the simplest fact: Buffett’s fortune isn’t due to just being a good investor, but being a good investor since he was literally a child.
• There are books on economic cycles, trading strategies, and sector bets. But the most powerful and important book should be called Shut Up And Wait. It’s just one page with a long-term chart of economic growth.
• Applying the survival mindset to the real world comes down to appreciating three things:
  > More than I want big returns, I want to be financially unbreakable. And if I’m unbreakable I actually think I’ll get the biggest returns, because I’ll be able to stick around long enough for compounding to work wonders.
  > Planning is important, but the most important part of every plan is to plan on the plan not going according to plan.
  > A barbelled personality-optimistic about the future, but paranoid about what will prevent you from getting to the future-is vital.

• Good decisions aren’t always rational. At some point you have to choose between being happy or being “right.”
• When most people say they want to be a millionaire, what they might actually mean is “I’d like to spend a million dollars.” And that is literally the opposite of being a millionaire.

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           If you've been feeling like you've made all the wrong money choices and that getting wealthy is out of reach, The Psychology of Money is the perfect book for you. It will open your mind to new ideas, help you reflect on your biases, and give you practical steps to make positive changes in your financial life.

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Reasons to read it:

• The book explores how our beliefs, attitudes, and behaviors shape our financial decisions, providing valuable insights into understanding and improving our relationship with money.
• The author, Morgan Housel, shares timeless financial lessons through relatable stories and real-life examples.
• The book challenges common misconceptions about wealth and offers a more nuanced perspective. It emphasizes the importance of financial resilience, contentment, and the role of personal values in achieving financial well-being.

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Reasons to skip it:

• There are no significant reasons not to read "The Psychology of Money." However, readers who are looking for a detailed guide on specific investment strategies or technical financial advice may find the book's focus on the psychological aspects of money less relevant to their needs. Nonetheless, for individuals seeking a deeper understanding of the psychological factors that influence our financial lives and the principles of long-term wealth creation, this book provides valuable insights and thought-provoking perspectives.