"The Psychology of Money" by Morgan Housel

Psychology of Money by Morgan Housel is a collection of essays that explore the psychology of how people behave with money. Housel argues that financial success depends more on behaviour than on intelligence, and that experience plays a significant role in shaping people's beliefs about money. The book examines various topics like risk, luck, wealth, and happiness, and how they relate to people's financial decision-making. It emphasizes the importance of being reasonable rather than purely rational when dealing with money and acknowledging the role of luck and risk. Housel highlights the significance of having a margin of safety, saving money, and understanding that the pursuit of more wealth can sometimes lead to regret. The book concludes with a look at the history of the American consumer, demonstrating how cultural factors and expectations have shaped financial behaviour over time.