On Monday 2nd August PropelHer’s Book Club discussed The Psychology of Money: Timeless lessons on wealth, greed, and happiness by Morgan Housel.

In this summary of The Psychology of Money, I’ll be briefly summarising the book to help you make a decision about whether you should buy a copy of the book for yourself.

In the introduction, Morgan set the scene for the rest of the book. He states that “the premise of this book is that doing well with money has little to do with how smart you are and a lot to do with how you behave”. He then goes on to justify the length of the book stating that “I’d rather make 20 short points you finish than one long one you give up on”.

As Morgan mentions in the introduction the 20 chapter (19 chapters share a specific story or lesson and then the final chapter is about how he personally deals with money). Then at the end there is a postscript.

The following chapter cover topics you’d expect to be covered in a book about money such as saving, investing, building wealth, the compound effect, margin of safety and risk. However, what makes this book is different is Morgan understands that as human beings we won’t always decide to choose what mathematically isn’t the best thing to do. In fact, in Chapter 11: Reasonable > Rational Morgan writes “in the real world, people do not want the mathematically optimal strategy. They want the strategy that maximises for how well they sleep at night”. Later (in Chapter 20) where Morgan shares exactly how his finances are set up you realise that even he has made choices he wouldn’t class as great financial decisions, but he is still happy with the choices he has made.

Throughout the book, Morgan share stories to help you to increase your wealth, but also to create freedom. He believes that “Money’s greatest intrinsic value – and this can’t be overstated – is its ability to give you control over your time.” His aim is not just to help you be wealthier but also to help you have control over your time.

 

That’s it! You now have an idea about what you can expect to find inside of The Psychology of Money: Timeless Lessons on Wealth, Greed, and Happiness by Morgan Housel.

 

Like the sound of The Psychology of Money?  Why not buy a copy of the book and read it yourself?

Buy your copy of The Psychology of Money from The Bookshop (and support local bookshops) or Amazon.

The Psychology of Money was read as part of PropelHer’s Book Club. PropelHer’s Book Club is an online non-fiction book club for ambitious women that meet monthly. Every month PropelHer’s Book Club reads a different book to help ambitious women concentrate on their personal development and professional success. You can see what else we have read so far here. If you would like to join PropelHer’s Book Club you can find full details here.

And don’t forget to share your book pictures! Tag @Propelherorg or use the hashtag #PropelHer