3 Lessons from The Psychology of Money
The Psychology of Money by Morgan Housel is a book recommended by many. In this video by Ali Abdaal , he highlighted 12 key lessons but I want to highlight three. 1. Avoid financial commitments for your future self The end of history illusion is the idea that when you ask people how much they've changed in the past 10 years, they're pretty good at describing it. But if you ask people to describe how they're going to change in the next 10 years, people are very bad at doing that. Knowing that we're bad at that, we're still going to need money 10 years from now so we should keep in mind not to make extreme financial commitments. 2. Don't be a flashy twat Morgan wrote to his son, "You might think you want an expensive car, a fancy watch, a huge house. But I'm telling you, you don't. What you want is respect and admiration from other people, and you think having expensive things will bring it. It almost never does, especially from the people you wan...