You're not a reasonable person, you might be rational. But is the market rational? Not even close. So, does it pay to be reasonable or rational? Housel says it's the former - be reasonable my friend. That'll help you more than anything in these volatile markets. Investing is more to do with psychology even if finances is purely mathematical. When stuff hits the fan, you won't be rational, looking at spreadsheets and charts. You'll be worried about your future and blame your past. This is a podcast on how to deal with finance reasonably even if it's not rational. 

If there's any way I can improve, let me know.

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Check out my Twitter: https://twitter.com/Aakash_Tries

---

Aakash

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Rule number one of any book on money is: SAVE. Saving money is more important that people give it credit. More than earning more or investing. The importance of the bridge between Income and Investment is Saving. Here's what we cover:

1. Building wealth has more to do with your savings

2. The value of wealth is relative to what you need

3. Past a certain level of income, what you need is just what sits below your ego

4. People's ability to save is more in their control than they think

5. You don't need a specific reason to save

6. Unseen return on wealth: The flexibility and control over your time

7.  Hidden returns are more important

If there's any way I can improve, let me know.

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Check out my Twitter: https://twitter.com/Aakash_Tries

---

Aakash

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What's the difference between being wealthy and rich? Being wealthy is hidden and dynamic, being rich is out in the open and static. If you bought a car for $100,000, you're richer by $100,000, but you're less wealthy by $100,000. That's the lesson in this chapter of Morgan Housel's book. We only see richness, we never see wealth. But if you look deep enough you see the sacrifices that led to riches, those sacrifices are true wealthy. 

If there's any way I can improve, let me know.

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Check out my Twitter: https://twitter.com/Aakash_Tries

---

Aakash

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Be honest. You looked at the guy in the fancy car, or the couple in the big home and thought, "I wish I had that." I do this all the time. But when I do, I rarely look at the people, I only look at the things. That's the lesson from the chapter "The Man In The Car Paradox." We always look at what money can buy, the cars, the watch, the phone, the house. Do we really want this? Housel suggests we really want two things through money, but which money can't buy, respect and humility.

If there's any way I can improve, let me know.

Buy the book here: https://amzn.to/3ERgi6j (Affiliate link)

Check out my Twitter: https://twitter.com/Aakash_Tries

---

Aakash

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The goal of money is control. The absence of money is a lack of control. Morgan Housel, in this chapter, boils the question of having wealth to Freedom. We all want more time with our loved ones, doing what we love, and having money is the way to achieve it. Whether it's having an emergency fund to not take on work immediately, or a retirement fund to not work till your incapable. That's what we all chase with money and this chapter is why we should optimize for control rather than just money.  

If there's any way I can improve, let me know.

Buy the book here: https://amzn.to/3ERgi6j (Affiliate link)

Check out my Twitter: https://twitter.com/Aakash_Tries

---

Aakash

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Tail events, the farthest ends of a distribution of outcome, drives everything. This is true in finance and in life. Think of anything or anyone who's achieved success. What we see is the glitz and glamour of Amazon, Disney, Netflix, or your favourite comedian or investor. What we don't see is the hours of work that went into achieving those outcomes. Housel teaches us the importance of not just looking for tail events, but knowing that tail events drive everything.

If there's any way I can improve, let me know.

Buy the book here: https://amzn.to/3ERgi6j (Affiliate link)

Check out my Twitter: https://twitter.com/Aakash_Tries

---

Aakash

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Making money is a great skill. But you know what's greater? Keeping and growing the money you've made. This is a difficult game, and many, including people like Warren Buffett have made mistakes keeping money. That's what Morgan Housel teaches us in this chapter, "Getting Wealthy versus Staying Wealthy." The difference is plenty as we'll see in the case of Jesse Livermore, Abraham Germansky, and Rick Guerin.

Key principles from this lesson:

- Avoid wipeouts 

- Always keep a margin of error

- Short term paranoia and long term optimism

Link to buy the book: https://amzn.to/3zIDSik

If there's any way I can improve, let me know.

---

Aakash

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#investing #personalfinance

Did you know that you can get a lot from something small? This isn't a pitch for a scam. It's actually the principle of compounding. Confounding, right? That's the title of the fourth chapter of The Psychology of Money - "Confounding Compounding." And in it Morgan Housel explains the fundamental principle of Warren Buffet's rise to success - compounding of time and money. It's really that simple and that difficult to start early, never stop and stay consistent.

Link to buy the book: https://amzn.to/3zIDSik

If there's any way I can improve, let me know.

---

Aakash

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#investing #personalfinance

What’s that point for you where earning money ceases to bring happiness? Is it a number, a milestone, a type of car, house, or watch? Everybody has an idea what their “enough” is but we rarely stick by them. In this chapter, Housel gives us four reasons why we would have a sense of “enough” and three tales of people who went beyond their “enough.”

Link to buy the book: https://amzn.to/3zIDSik

If there's any way I can improve, let me know.

---

Aakash

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Luck and risk are siblings. That's how Housel begins this chapter. One can take you to success and the other away from it. But the importance of luck and risk is overlooked. In this chapter, Housel takes us through luck and risk with Bill Gates and another potential co-founder of Microsoft, Benjamin Graham, and other successful people. We often look at the top or the bottom, the ones on the right and wrong side of risk. We often ignore everyone else. Hopefully, this chapter will help us think otherwise.

As Scott Galloway said, "Nothing is as good or as bad as it seems." 

Link to buy the book: https://amzn.to/3zIDSik

If there's any way I can improve, let me know.

---

Aakash

#books

#investing #personalfinance