Top 10 Quotes from “Psychology of Money”

“The Psychology of Money” by Morgan Housel is a highly regarded book that explores the behavioral and psychological aspects of personal finance and investing. Here are ten of the most insightful lines from the book:

…

1. “Some of the most important investing you do will be the money you save in your 401(k) or your bank account that never sees the inside of an investment portfolio.”
2. “The highest form of wealth is the ability to wake up every morning and say, ‘I can do whatever I want today.’”
3. “No matter how much money you have, it can always be taken away by something that’s more important.”
4. “Good investing is not necessarily about earning the highest returns; it’s about earning pretty good returns that you can stick with and which can be repeated for the longest period of time.”
5. “Getting money is one thing. Keeping it is another.”
6. “The hardest financial skill is getting the goalpost to stop moving. We chase after more money, more status, and more excitement, never pausing to consider how much is enough.”
7. “Being able to stick around, do nothing, and not feel the need to chase hot stocks is a giant edge in investing.”
8. “The four most dangerous words in investing are: ‘This time it’s different.’”
9. “Risk is what you don’t see.”
10. “The ability to do what you want, when you want, with who you want, for as long as you want, is priceless. It is the highest dividend money pays.”

These quotes capture some of the key themes and insights from “The Psychology of Money,” which emphasizes the importance of financial behavior, mindfulness, and long-term thinking in achieving financial success and happiness.