Psychology of Money | Timeless Lessons 📚

Someone driving a $100,000 car might be wealthy. But the only data point you have about their wealth is that they have $100,000 less than they did before they bought the car (or $100,000 more in debt). That's all you know about them.

"What people 'want' often has very little to do with what they actually 'need.'"

"The art of living well is to be detached from what makes you unhappy."

"The best investment strategy is often the simplest one."

"Being rational, patient, and having a disciplined approach to your finances is often more valuable than having a high IQ."

"Success is often a delusion. One needs a lot of luck to be successful, but to acknowledge the role of luck is to admit that other people could have done what you did if they had been as lucky as you."

"The wealthiest individuals are often the ones who have enough; anything more is just a bonus."

"Investing is not the study of finance. It’s the study of how people behave with money."

"Wealth is relative. And the higher you go, the more relative it gets."

"The price of success is not the cost at which you buy it, but the cost at which you sell it."

"The more extreme the outcome, the less likely it is to be repeated."

"Your personal experiences with money make up maybe 0.00000001% of what's happened in the world, but maybe 80% of how you think the world works."

"A huge part of financial freedom is having your heart and mind free from worry about the what-ifs of life."

"Investing is not the study of finance, it's the study of how people behave with money."

"Most of what you'll deal with in money management are timeless lessons about behavior and expectations."

"The most important part of every plan is planning on the plan not going according to plan."

"Focus on the things that change slowly, if at all."

"Comparing yourself to others is the root of all evil in investing."

"The only thing worse than losing money is losing it because of errors you could have avoided."

"The ability to endure a terrible situation and come out of it fine is worth more than short-term gains."

"Investing is a uniquely personal exercise."