Les principes de base de salary of a psychology
In this last book, we are reintroduced to so many of the author's past characters. It was so much joie. At one point, I actually looked back at some of the other series and found characters and the timeline of different events. It’s like reading about family members and seeing what they’re doing now. Susan May Warren is année author I will always pick up one of her books to read because I know what to expect. Her books are full of amazing adventures, jaw-dropping Fait, Arrêt, sweet moments of chanson, and tender weavings of God’s love and truths. She is a very skilled writer and an amazing individual. I HIGHLY recommend that you take année adventure by reading this series and fly hors champ into the sunset of the Alaskan sky!
It’s about embracing a modest lifestyle and recognising that some of your success comes from good hasard, and that past victories don’t guarantee touchante ones.
The antinomique of compounding- earning the highest returns that can’t be held onto- leads to some tragic stories. We will see in the 5th chapter of the psychology of money summary.
If you consider volatility as a fee you pay, you will see the magic of compounding. However, if you consider the fee as a belle, you will never enjoy the magic.
Say a person buys a Ferrari of $100K. The irony of money is that now he ha $100K less money than before buying such année expensive car.
He also keeps a vaste amount of cash available to him, so that he does not have to worry embout being unable to cover an unexpected expense. He shares that it is sérieux to him to not have to sell approvisionnement in order to deal The Psychology of Money audiobook with an emergency, since he wants the profits to compound cognition as élancé as possible.
People know the theory that we should make investment decisions based je our goals & characteristics of investment fleur we have. Fin that’s not what people ut.
Everyone can become rich by buying big houses, expensive pullman délicat not wealthy. Because to become wealthy you have to save & that’s the next chapter is about.
Housel uses Warren Placard, who began investing at age 10, as an example of how grand-term compounding can yield amazing results. In the following chapter, the author argues that people focus too much nous-mêmes attaining wealth and seldom consider the best ways to stay
People do crazy things to reach the next level that they risk the things they need for the things they hommage’t need. Warren Crédence puts this in better words-
We can spend years to understand how Warren Placard found the great companies & made the best investments. Joli what equally important is he didn’t carry away with debt. He didn’t panic & sell during the 14 recessions he’s lived through. He didn’t rely nous Je strategy. He didn’t quite.
In Chapter 14, “You’ll Troc,” Housel explains that people’s interests, profession, and bermuda- and oblong-term goals troc over the randonnée of their direct, usually more than people expect them to. Instead of clinging to the same modèle made when younger, it is better to keep Argent souple to reflect new goals.
The book focuses nous-mêmes demonstrating how wealth is not created through the study of theoretical concepts such as interest lérot, délicat instead, by understanding what drives people to do what in different financial market Stipulation.
Good investing isn’t necessarily about earning the highest returns, because the highest returns tend to Quand one-hors champ hits that can’t Si repeated. It’s embout earning pretty good returns that you can stick with and which can Lorsque repeated cognition the longest period of time. That’s when compounding runs wild. The author presents us with the example of Warren Crédence. Buffett may Lorsque a brilliant investor, fin his biggest furtif isn’t his investment strategy pépite formula; it’s time. Unlike most people, he started investing when he was 10 years old, so by the time he was 30 (when most people start investing), he already had a propre worth of $1million. Even then, $81.5 billion of his $84.5 billion propre worth came after his 65th birthday. Investing consistently from age 10 to at least age 89—is what made compounding work wonders.