Goodreads helps you keep track of books you want to read.
Start by marking “The Psychology of Money: Timeless lessons on wealth, greed, and happiness” as Want to Read:
The Psychology of Money: Timeless lessons on wealth, greed, and happiness
Enlarge cover
Rate this book
Clear rating
Open Preview

The Psychology of Money: Timeless lessons on wealth, greed, and happiness

4.53  ·  Rating details ·  1,817 ratings  ·  221 reviews
Doing well with money isn’t necessarily about what you know. It’s about how you behave. And behavior is hard to teach, even to really smart people.

Money—investing, personal finance, and business decisions—is typically taught as a math-based field, where data and formulas tell us exactly what to do. But in the real world people don’t make financial decisions on a spreadshee
Kindle Edition, 300 pages
Published September 8th 2020 by Harriman House
More Details... Edit Details

Friend Reviews

To see what your friends thought of this book, please sign up.

Reader Q&A

To ask other readers questions about The Psychology of Money, please sign up.

Be the first to ask a question about The Psychology of Money

This book is not yet featured on Listopia. Add this book to your favorite list »

Community Reviews

Showing 1-30
Average rating 4.53  · 
Rating details
 ·  1,817 ratings  ·  221 reviews

More filters
Sort order
Start your review of The Psychology of Money: Timeless lessons on wealth, greed, and happiness
Jacob Mainwaring
Sep 08, 2020 rated it really liked it
This was a short but enjoyable read. The main point is that we are complicated creatures who have complicated relationships with money. It’s ok and expected to not base every decision off of cold Excel calculations. instead of pretending we will, here is some of the advice he recommends:

Don’t try and time the market. Dollar cost average. 85% of large cap fund managers did not beat the S&P 500. Stock picking isn’t the worst thing ever but know the odds are not in your favor. Doing some of that is
Sanford Chee
The blog post that turned into a book
Sep 17, 2018 rated it it was amazing  ·  review of another edition
Something to be read every year.
Sep 28, 2020 rated it it was amazing  ·  review of another edition
When your favorite financial writer comes out with a book, its okay to drop everything to read it. I've been a fan of Morgan Housel's writing for many years. The idea for the book 'The Psychology of Money' came from his long article by the same name. He likes to keep his writing concise but it packs a punch. The best part of his writing is that he takes the lessons from history, finance, psychology, etc. and applies it to everyday personal finance. He has this uncanny ability to look at somethin ...more
Harsha Varma
Such a short book with so much wisdom and generally good advice. Highly recommended.

On a side note, this book also made me realise that Hans Rosling’s Factfulness has such great advice on investing. We often get bogged down on what’s happening in the short run and do not appreciate the progress we’ve made in the long run. Progress happens too slowly to notice, but setbacks happen too quickly to ignore. And thus, in life and investing, optimism trumps pessimism in the long run.

1. The high
Monalisa Sethi
Sep 30, 2020 rated it it was amazing  ·  review of another edition
This is a must read for every individual (irrespective of age) who have started investing. This book is primarily divided into 3 parts:
1. How the world of money works?
2. How we should think about our own future and ideas of wealth?
3. How we should actually go about investing with the above mentioned knowledge?
Sep 30, 2020 rated it really liked it  ·  review of another edition
Shelves: investing, finance, life
With a title as clickbaity as this and an author with such impressive credentials, anticipation for this book was sky-high. In fact, this book was on my to-read list from the time Morgan had announced it on Social media. I admire Morgan, his tweets and the work he is doing to educate normal people on financial matters . And all this while being a partner at a fund house ( talk about managing conflicts of interests in a honest way).

So now coming back to the book after the digression . The book is
Oct 12, 2020 rated it it was amazing  ·  review of another edition
One can only wish for more books to be written this clearly and concisely while still evoking all those feelings of great insight where if only for a brief moment, everything in the world makes sense.

Sumedh Sapre
Oct 02, 2020 rated it it was amazing  ·  review of another edition
A book written in beautifully simple language that reinforces the timeless wisdom on building wealth. The positive and humble tone of Morgan fills you with motivation to follow a disciplined path towards financial independence and better personal financial planning in general.
Pratik Kothari
Sep 26, 2020 rated it it was amazing  ·  review of another edition
Simple and obvious things, that’s needs to be remembered and reminded of again and again. A personal finance guide, that ideally should have been taught in school. Also, this book defines happiness and shows how to be one, better than most other self-help books.
Amirah Jiwa
Sep 23, 2020 rated it it was amazing  ·  review of another edition
Clear, engaging, and enlightening. This is an economic history book not a self-help book but it is jam-packed with practical advice about what to do with money that accounts for the varying perspectives we might have around it due to our class, background, and upbringing. It interested me while motivating me to develop better money habits.
This is an excellent book highlighting the most important things to think about when considering money matters. Highly recommended. Here is a brief summary of each chapter:

No one’s crazy – decisions I think don’t make sense quite probably make sense if I consider where the person is coming from, what their background is, where and when they were born and what they lived through in their formative years.

Luck & Risk – Luck is difficult to quantify until after the fact. Risk is ever-present and goo
shweta agarwal
Oct 08, 2020 rated it it was amazing  ·  review of another edition
This book was recommended by a friend and I am really thankful to him for making me read it. This is a book that should be read by everyone as in today's time the importance of money cannot be overstated. It can buy happiness, freedom and is one of the biggest influencer of the quality of life.

Another onus is that it's written with such clarity and simplicity which is hard to find in the world of finance and investment, even a child can understand it. Lessons given are counterintuitive most of
Robert Martin
The Psychology of Money has been widely recommended to me, both by the podcasts I follow as well as friends who are interested in investing. This is not a book about finance. Rather, it is a book containing observations about our relationship with money. With "psychology" in the title, I was expecting something more Kahneman-esque, with a focus on behavioural biases and how these lead to different investor performances. Instead, the book presents a more narrative-based discussion of various topi ...more
Vinayak Hegde
Oct 14, 2020 rated it it was amazing
The book explores how behavior, discipline, and past experiences can drive our decision making with money with added historical context. The narrative is beautifully written with an emphasis on prose and storytelling rather than numbers and statistics (which most finance books do). The book questions some of the fundamentally held beliefs about money by everyone in a good way. It gives a good framework for decision making which can easily get lost in the wake of television and social media (and ...more
Sep 22, 2020 rated it it was amazing  ·  review of another edition
I didn’t want to read this book, I needed to. There were a lot of things mentioned which I already knew but anecdotes mentioned by the author helped me understand them better. Few of the most important takeaways for me were:

World is too complex to allow 100% of your actions to dictate 100% of the outcomes.

Most of us want to spend a million dollars not own million dollars!

Most important thing I can buy from money is control of my time.

Volatility, fear, doubt, uncertainty and regret are true pr
Oct 14, 2020 rated it it was amazing  ·  review of another edition
If you've read quite a bit on a topic, a lot of what's talked about in a book usually becomes predictable. An artist, however, can surprise you. This unpredictability is the source of novelty. Morgan is one such smooth writer who manages to surprise you no matter how much you've read about such topics. This book deals with ideas that are truly 'timeless'. It doesn't preach. It just gives you a bunch of ideas to ponder and think about. That's what good books are supposed to be about i guess.
Graeme Hogg
Oct 17, 2020 rated it it was amazing  ·  review of another edition
Nobody is perfect, don't compare yourself, most of it is luck, time is your friend, invest in index funds.
Nopadol Rompho
Sep 29, 2020 rated it it was amazing
I really love this book. It's not just about the money management but it is more deeply into the psychology. You can't just use other people's method, you need to know that we are different. Strongly recommended.
Sep 30, 2020 rated it it was amazing
Very clear and short book that contains a lot of things that might should be common knowledge or obvious, but aren't explained so clearly as in here.

It treats money as the thing it is: a bunch of (trust) relationships between people, with all the emotions and messiness that comes with people. And that's how it should be treated! So don't pretend you're a spreadsheet, read this book and become a little more aware of what goes on in your head.
Sep 18, 2020 rated it it was amazing  ·  review of another edition
Crisp, insightful and no BS. More books should be written like this one.
Santhosh Guru
Sep 19, 2020 rated it really liked it  ·  review of another edition
I am big fan of Morgan and his writing. This book is a crisp compilation of all his writings and podcast interviews. It is definitely great stuff for anyone interested in money and personal finance. More than the tactics of where to invest or asset allocation strategy, this book will question you to think deep about money.

It made me think about these questions: What is my relationship with money? What do I want from money? When to listen and when not to listen to the experts on money?

So why not
Rahul Singh
Oct 10, 2020 rated it really liked it  ·  review of another edition
First chapter was a complete waste of time . You can skip it . A typical substandard start with a story not found generally among people to create the premise , where a profligate throws up gold coin and foots a 5000 dollar bill for a destroying a 500 dollar bulb 😭😭. Ridiculous example like the Indian news media to create a narrative , and then denounce it with the outcome that later this profligate turned broke.

When the author says "The lesson here is not to be more like Ronald and less like R
Sep 20, 2020 rated it it was amazing  ·  review of another edition
A short yet excellent book on personal finance, our attitude towards money and how that influences our actions. Not only does the book contain many wisdoms, the majority of which seem absurdly simple & straightforward, but it is also well-written and short enough to enjoy during a weekend. Highly recommend it!

“The idea of having “enough” might look like conservatism, leaving opportunity and potential on the table. I don’t think that’s right. “Enough” is realizing that the opposite—an insatiable
Sanket Sheth
Oct 05, 2020 rated it it was amazing  ·  review of another edition
This book is not for a particular class of people, this is for everyone. I would just put it plainly - “Read this book without a miss”. If I were to say what does this book contains, it would be difficult to sum it up. It contains wisdom that transcends two generations. This book answers some pertinent questions and points towards interesting unnoticed trends :

Why people like Mukesh Ambani make 90 Crore/hour during a pandemic, while a middle-class person slogs his ass to keep his job and the poo
Vikrama Dhiman
Sep 21, 2020 rated it it was amazing  ·  review of another edition

The expectations from this book were sky high. And, does it deliver. The key lessons on optimism and pessimism and long term aside - the two things that states with me:
1. Expectations change even slower than reality. Everyone sees the world they have seen it before.
2. Everyone plays the game of investment differently. You need to define your game.

What else stayed with me: the quote from relative of a Chinese woman working at a 'sweatshop', role of luck or serendipity, how much little
Sep 22, 2020 rated it really liked it  ·  review of another edition
The Psychology of Money was really good in general. Apparently the genesis of it is as a blog post, and I can totally see that. All in all, there are some good lessons in here, and different ones will resonate differently with everyone. For me the most salient ones are that living below your means is actually the key to unlocking long-term investing goals, and that doing whatever is needed to stick with a plan is critical, since most of the results come from the handful of best days.

4/5, worth
Manish Ramesh
Oct 09, 2020 rated it really liked it  ·  review of another edition
This is really both a well-rounded and a well-written book.

It never tells you what to do - Big positive for me.
My 3 point take is:
1. The anecdotes and examples are all on point- In every chapter, they drive home the point.
2. I like how Morgan talks about what's 'reasonable' when it comes to managing your money (instead of what's perfectly rational) - At the end of the day, it all needs to let you sleep well.
3. This is the first time I've read a more or less wholesome timeline of American househ
Wayne Jones
Sep 26, 2020 rated it it was amazing
A worthy addition to guides for gaining financial independence

Recommended for readers wondering what steps they need to take to get off the debt treadmill and offers strategies for gaining financial independence without going off the grid and living like a monk. I know I will be recommending and gifting this book to many people.
Tomas Laurinavicius
Oct 17, 2020 rated it really liked it
Good food for thought about money

You will not find a way to get rich quick here. What you will find are alternative ways of thinking about money, wealth, society, psychology and human behavior. Highly recommended for anyone interested in becoming a better thinker, investor and smarter money manager.
« previous 1 3 4 5 6 7 8 next »
There are no discussion topics on this book yet. Be the first to start one »

Readers also enjoyed

  • The Almanack of Naval Ravikant: A Guide to Wealth and Happiness
  • Сахарный Кремль
  • Day of the Oprichnik
  • Odinsbarn (Ravneringene, #1)
  • The Millionaire Next Door: The Surprising Secrets of America's Wealthy
  • If You Can: How Millennials Can Get Rich Slowly
  • Totální nasazení
  • Лекции по кинорежиссуре
  • The Bro Code
  • Noa Noa
  • Your Perfect Year
  • The English Assassin (Gabriel Allon, #2)
  • The Confessor (Gabriel Allon, #3)
  • In the Heart of the Sea: The Tragedy of the Whaleship Essex
  • Lone Survivor: The Eyewitness Account of Operation Redwing and the Lost Heroes of SEAL Team 10
  • The Kill Artist (Gabriel Allon, #1)
  • Flow: The Psychology of Optimal Experience
  • Hooked: How to Build Habit-Forming Products
See similar books…
Morgan Housel is a partner at Collaborative Fund and a former columnist at The Motley Fool and The Wall Street Journal.

News & Interviews

  Let your voice be heard! We need your help selecting the best books of the year during the 2020 Goodreads Choice Awards, our 12th annual...
42 likes · 19 comments
“Some people are born into families that encourage education; others are against it. Some are born into flourishing economies encouraging of entrepreneurship; others are born into war and destitution. I want you to be successful, and I want you to earn it. But realize that not all success is due to hard work, and not all poverty is due to laziness. Keep this in mind when judging people, including yourself.” 1 likes
“In theory people should make investment decisions based on their goals and the characteristics of the investment options available to them at the time. But that’s not what people do.” 1 likes
More quotes…