This book published recently at the starting phase of corona pandemic has the backdrop of historic happenings in the field of banking, investments, finance with anecdotes of facts & figures referred from USA.
Doing well with money has a little to do with how smart you are & a lot to do with how you behave. And behavior is hard to teach, even to really smart people.
A genius who loses control of their emotions can be a financial disaster. The opposite is also true. Ordinary folks with no financial education can be wealthy, if they have a handful of behavioral skills that have nothing to do with formal measures of intelligence.
About stock market investing, author questions - In what other industry does someone with no college degree, no training, no background, no formal experience and no connections can massively outperform someone with the best education, the best training and the best connections?
Financial success is a soft skill, where how you behave is more important that what you know. And author call this soft skill as 'the psychology of money'. This book is the compilation of 20 short stories to convince readers that; soft skills are more important than the technical side of money. To keep your curiosity on, I would not reveal any details from these 20 chapters here.
At the end of book, author confesses about his own way of investing - which is sip in Index fund, which is actually passively managed mutual fund having the exact representation of various stocks in the same proportion.
As a closing remark, I must say - The Psychology of money is the best book I have read not only about investment & finance, but also about importance of frugal lifestyle and minimalist behavior; which is my biggest take away & practices I try to follow in my day to day life.
This book certainly falls in my Top 5 recommendations ….. so go read it & Happy reading :)
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