Tidbit Note -Practice English With Me-

#16 Book review: Psychology of money


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I currently try to read one book a month. The latest book I completed was "The Psychology of Money" by Morgan Housel which is one of the current best sellers on Amazon Kindle. Honestly, reading was not my thing in my entire life. I only finished several business books related to my previous profession that were needed, but I started this because, needless to say, reading is supposed to be one of the best ways to improve language learning.  

The book "The Psychology of Money" was the perfect start for me because "money" is surely an attractive topic that I can be interested in for now, still took me 1.5 months to complete. Reading books in English was harder than I thought because there were numerous vocabularies that I first met in the book, that let me check the meaning and then go back to the page where I was, like back and forth. However, this was a good starter because I was deeply engrossed with the book so I didn't have to give it up till the end. 

Let me give you a rough introduction to this book in case you don't know this book.

This book delves into the psychological and behavioural aspects that drive financial decisions, highlighting the importance of understanding our emotions, biases, and beliefs about money. He emphasizes that successful money management is not just about numbers and formulas but also about mastering our mindset and behaviours. The book offers valuable insights into building wealth, managing risk, and achieving financial well-being by integrating psychology with practical financial principles. Of course, you can get the Japanese version in a nearby bookstore as well. 

The reason why I love this book is because I just started saving money for the first time in my life. The book motivated me to save or invest money going forward. Today, let me give you 3 quotes that I was most impressed by in this book. I am sure this is not going to reveal contents too much, but rather make you excited to read it.

No.1, "Saving money is the gap between your ego and your income, and wealth is what you don't see."

High chance is you do not agree with me but for me, saving money always needed for reasons such as the desire to buy something expensive, or to go abroad. what I was convinced of is that in most cases purchases are a form of ego except for the expenses to live. I have paid huge money for many things with no reason just to feel satisfied with something. For example, going to fancy restaurants or travelling with a rental car a month when I was in Tokyo, for no reason.  If you have less ego, then you can save more money. I could save money. This is a really simple experience for me. That makes me feel easy to save money.  

No.2, "Worship room for error and avoid the extreme ends of financial decisions." I find it important because now I am overwhelmingly excited to save or invest money after I felt easy to save money. This is obviously dangerous and then I was about to invest most of the money that I have. You can imagine how I am going to end up... I might lose everything and regret everything I did, doubt everything I learned in this book. To avoid this worst-case scenario, room for error is imperative. Just go little by little with a long-term horizon.  

No.3, "Define the game you are playing, make sure your actions are not being influenced by people playing a different game." 

Living in Canada, with no savings, over 30-year-old lady no longer plays the same game as people my age. 

We tend to forget this and get depressed about the reality, but most likely I don't have to get disappointed just by thinking "I am playing a different game from them." This is kind of an excuse but good to have. Absolutely. You can whenever see yourself as a professional player playing different games who has special duty and responsibility. That definitely makes you feel less anxious and depressed and rather motivated to go forward.

I am proud of finishing the book and learned a lot. I will definitely keep you updated

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Tidbit Note -Practice English With Me-By Charlie Blue