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Because ultimately, Housel concluded, ● Beware that you and everyone around
“wealth is what you do not see. Wealth is you will change over time.
the nice cars not purchased. The diamonds ● Every decision has a price that you
were not bought. The watches were not should be ready to pay.
worn, the clothes forgone and the first-class ● Before any comparison and decision
upgrade declined. Wealth is financial assets making, make sure that both sides are
that have not yet been converted into the playing the same game!
stuff you see.” ● Avoid extreme decisions since things
Indeed, the aim of this book is not to sell can change.
the author’s service, but it is to give us the
complete psychological understanding Top 10 Lessons from the Book – The
of our relationship with money, and Psychology of Money
how to have a better attitude towards it. ●Less ego, more wealth.
And for that reason, this book offers a ●Manage your money in a way that helps
fresh perspective in an already saturated you sleep at night.
personal finance industry. Which is why ●If you want to do better as an investor,
this is one of the most influential books that the single most powerful thing you can do
I have ever read.” is increase your time horizon.
In summary: ●Become OK with a lot of things going
● When making money decisions, beware wrong. You can be wrong half the time and
of your limited knowledge and experience. still make a fortune.
● Focus on broader ideas and patterns ●Use money to gain control over your
instead of specific individuals and their time.
actions. ●Save. Just save. You don’t need a specific
● Train and remind yourself to be content, reason to save.
there are things not worth risking. ●Define the cost of success and be ready to
● Long term steady investment can give pay it.
compounding returns. ●Worship room for error.
● Be optimistic about the future, being ●Avoid the extreme ends of financial
paranoid about things that can affect that decisions.
future. ●You should like risk because it pays off
● Apply the principle of stop-loss to your over time.
life. I would like to end with two quotes from
● Use money to control your time. That is the book:
freedom. The premise of this book is that doing
● Be humble, kind and empathetic. It will well with money has a little to do with how
bring respect. smart you are and a lot to do with how you
● Don’t spend money on things you don’t behave. And behaviour is hard to teach,
need. Save money. even to really smart people.
● Being reasonable rather than trying to be I love Voltaire’s observation that “History
coldly rational gives us peace of mind. never repeats itself; man always does.”
● Plan ahead. But also think about what It applies so well to how we behave with
happens when the plan goes wrong. money.
SENIORS TODAY | ISSUE #68 | FEBRUARY 2025 19
