Book: Psychology of Money | Summary

Doing well with your money has little to do with your smartness, but a lot more to do with your behavior. Behavior is hard to teach. A genius who loses control of his emotions can be a financial disaster. And ordinary folks with no financial education can be wealthy if they handful of behavioral skills that have nothing to do with formal measures of intelligence
Soft skills with money are equally if not more important than hard skills of generating returns. A lot of financial outcomes are also driven by luck, not by intelligence and effort.
Finance has continued to scoop top talent from universities, but has that made us better investors? NO. Through years of collective trial and error, we have become better farmers, skilled plumbers, and chemists. But becoming better at personal finance is something we have not learnt with this iteration.
To know why people bury themselves in debt, you don’t need to study interest rates but you need to study history of greed, insecurity and optimism.
Voltaire once said “History never repeats itself. Man always does”. Man keeps making the same mistakes

1. No One’s crazy
1. Luck & Risk
1. Its never enough. Rich people do crazy things to get richer.
1. Compounding. $81Bn of $84Bn of Warren Buffet’s net-worth came after his 65th bday.
1. Getting wealthy is not making 1-2 good decisions, but its about consistently not screwing up.
6. You can be wrong half the time and still make a fortune. Investing is a portfolio after all.
7. Freedom = Controlling your time. Money can help you buy freedom, not happiness.
8. Man in the car paradox. No one is impressed with your material possessions as much as you are.
1. Spending money to show people how much money you have is the fastest way to have less money.
1. Everyone needs to save (yet there are some who think they don’t need to save). You need to have a high savings rate. Period.