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A review by svreads
The Psychology of Money: Timeless Lessons on Wealth, Greed, and Happiness by Morgan Housel
5.0
Some of my favorite quotes and passages:
• "To study why people bury themselves in debt, you don't need to study interest rates; you need to study the history of greed, insecurity, and optimism."
• "History never repeats itself; man always does." - Voltaire
• "People from different generations, raised by different parents who earned different incomes and held different values, in different parts of the world, born into different economies, experiencing different job markets, with different incentives and different degrees of luck, learn very different lessons."
• "It was not until the 1980s that the idea that everyone deserves a retirement took hold...The Roth IRA was not born until 1996. If it were a person, it would be barely old enough to drink...There is not decades of accumulated experience to even attempt to learn from. We're winging it."
• "Every group of people I ask thinks the world is more violent and more hopeless - in short, more dramatic - than it really is." - Hans Rosling
• "Achieving some level of independence does not rely on a doctor's income. It's mostly a matter of keeping your expectations in check and living below your means. Independence at any income level is driven by your savings rate. And past a certain level of income your savings rate is driven by your ability to keep your lifestyle expectations from running away."
• "Define the game you're playing, and make sure your actions are not influenced by people playing a different game than you are."
• "To study why people bury themselves in debt, you don't need to study interest rates; you need to study the history of greed, insecurity, and optimism."
• "History never repeats itself; man always does." - Voltaire
• "People from different generations, raised by different parents who earned different incomes and held different values, in different parts of the world, born into different economies, experiencing different job markets, with different incentives and different degrees of luck, learn very different lessons."
• "It was not until the 1980s that the idea that everyone deserves a retirement took hold...The Roth IRA was not born until 1996. If it were a person, it would be barely old enough to drink...There is not decades of accumulated experience to even attempt to learn from. We're winging it."
• "Every group of people I ask thinks the world is more violent and more hopeless - in short, more dramatic - than it really is." - Hans Rosling
• "Achieving some level of independence does not rely on a doctor's income. It's mostly a matter of keeping your expectations in check and living below your means. Independence at any income level is driven by your savings rate. And past a certain level of income your savings rate is driven by your ability to keep your lifestyle expectations from running away."
• "Define the game you're playing, and make sure your actions are not influenced by people playing a different game than you are."