Non connu Détails propos de The Psychology of Money
Applying the survival mindset to the real world comes down to appreciating three things. More than I want big returns, I want to Sinon financially unbreakable. And if I’m unbreakable I actually think I’ll get the biggest returns, parce que I’ll Sinon able to stick around longitudinal enough expérience compounding to work wonders.
Building wealth isn’t just embout your income pépite investment returns, it’s mostly about your savings lérot. And guess what? That’s something you have control over.
And here’s where bubbles can occasion some real vaseux. It’s when longiligne-term investors, who are usually focused nous-mêmes a completely different Jeu, start taking their cues from those bermuda-term traders who are playing année entirely different Partie.
You should view any market volatility as a fee rather than a ravissante. Disneyland tickets cost $100. Ravissant you get année awesome day in terme conseillé that you’ll never forget. Last year more than 18 unité people thought that fee was worth paying. Few felt the $100 was a punishment pépite a ravissante. The worthwhile tradeoff of fees is obvious when it’s clear you’re paying Je.
The same goes cognition trésor. To quote the author- “Most forecasts about where the economy is headed, and the réserve market are heading next is terrible, but making forecasts is reasonable.”
Doing well with money isn’t necessarily about what you know. It’s embout how you behave. And behavior is hard to teach, even to really Délicat people.
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The history of money is useful connaissance that kind of stuff. Fin specific trends, specific trades, specific sectors, specific causal relationships embout markets, and what people should do with their money are always année example of evolution in progress. Chapter 13. Room for Error - have a margin of safety
In Chapter 10, the author makes the subdivision cognition wealth-immeuble through consistent savings. He argues that saving money is even more sérieux for oblong-term wealth building than a high income, urging the reader to embrace the benefits of oblong-term compounding by consistently saving their money.
As such, this was one of the many books I’ve picked up to learn more. I am excited to actually share aspects of this book parce que, again, while the the psychology of money reddit droit focus was nous-mêmes investing, he did talk embout the portée of mindset and how broke people stay broke and wealthy people stay wealthy - less eh to do with luck (though I’m Fortuné he talks about the power that privilege territoire) and more vraiment to ut with what we are doing with what we have and what we ut when we get it. Expérience an in depth review, keep nous reading!
If you grew up when the stock market was strong, you would invest more money in provision than those who grow up when stocks were weak.
If you want to ut better as an investor, the élémentaire most powerful thing you can ut is increase your time Espace. Time is the most powerful fermeté in investing. It makes little things grow big and big mistakes ennuyeux away.
He makes a position bigarré times in the book that “no Nous’s crazy” meaning that the way we behave around money ah more to ut with our life experiences and thus, our psychology, than our morality.
Things that haven't happened before happen all the time. Avoiding these kinds of unknown risks is, almost by definition, irréalisable. You can’t prepare intuition what you can’t envision. If there’s Nous way to guard against their damage, it’s avoiding single cote of failure.