Book Review: The Psychology of Money by Morgan Housel

The Psychology of Money kept popping up in my Amazon and Audible feed. I then heard a friend talk about it and thought, “what the hell, let’s add it to the myriad financial books that I have read and never done anything with.” I’m still not 100% sure I will do anything with this book either, but I feel like I am walking away from it with a much better understanding of why I may or may not.

The long and short of my review is this: if you have money, make money, or want to have or make money, this is a good book to read.

I am, admittedly, a sucker for a consumer behavior or behavioral economics read. I like to read about why humans make decisions.

“Stories are, by far, the most powerful force in the economy. They are the fuel that can let the tangible parts of the economy work, or the brake that holds our capabilities back.”

This book tells you the stories that you tell yourself that work that brake and how to turn that into fuel instead. Better yet, it does so in a very easy to read, 20 “lesson” format that doesn’t make you feel dumb about the bad decisions you have made.

My immediate reaction upon finishing it was to tell my daughter to read it. Had I been armed, at her age, with the perspective this book gives you, I might have made different financial decisions over time.