Lessons from “The Psychology of Money”

1. Behave:

Financial Success is not a hard science. It’s a soft skill, where how you behave is more important than what you know, I call this soft skill the psychology of money.”

2. Compounding:

If something compounds, a small starting base can lead to results so extraordinary they seem to defy logic.

3. Getting wealthy Vs. Staying wealthy:

There’s only one way to stay wealthy: some combination of frugality and paranoia.

4. Freedom:

The ability to do what you want, when you want, with whom you want, for as long as you want, is priceless. It is the highest dividend money pays.

5. Man in the Car Paradox:

No one is impressed with your possessions as much as you.

6. Wealth is what you don’t see:

Spending money to show people how much money you have is the fastest way to have less money.

7. Nothing is free:

Like everything else worthwhile, successful investing demands a price.... volatility, fear, doubt, uncertainty and regret.

8. You & Me:

Beware taking financial cues from people playing different games than you are.