You Don’t Need To Be Smart To Be Rich, Here Is Why.
The Psychology of Money Summary
Genius is an ordinary person who do ordinary things while others around him is losing his mind. -Napoleon
Money is not the ultimate key to happiness but if you are sad I bet you would rather cry in a villa rather than on the street especially when it rains.
Money has become a really important thing for us, we could enjoy what life has to offer with having more money. So what’s stopping us from getting rich ?
Chapter 1 : There are no crazy person
You might have thought going to stock market is crazy, it’s better to save on bank, use deposits, or use cryptocurrency. Hey all of that are right, you might have used stock market because when you are in your 18, the stock market have a great profit. Or you might be into cryptocurrency since you get a huge sum of money from bitcoin. It’s more about what we experience in the past that create our future.
Search for the right investment that suits you is the first step of becoming a smart saver. Personally I would invest on snp 500 or bluechip stocks.
Chapter 2 : Luck and Risk
The quotes of “Our life is a series of choices” might be right, but it’s not accurate, our life is a combination of events that we can control and can’t control. There are people who died because he is unlucky for example engine failure, thunderstorm, and so on.
Our life have series of lucky event and unlucky event, and if you see someone who have a poor life, don’t judge it that they are lazy immediately, they could be just an unlucky person same thing if you see a rich person. But remember luck favors those who help themselves.
Chapter 3 : Car Paradox
Imagine you just buy a brand new mercedes or BMW for $35,000 , and when you brought it to a party or family reunion, you make your friends and family impressed. Your family are proud of you because they think you are successful. Maybe it’s a happy moment, but you have to remember that you are $35,000 poorer than before buying the BMW. And you only impressed your family for one day.
No one is more impressed with your possessions than yourself
Chapter 4 : Time is the best dividend
Being rich is when you can do whatever you want and go wherever you want. Not having to work anymore but instead doing what you love. Research says 38% of people works as a manager, professional, or people that creates decision.
Most of our shifts doesn’t end when we leave the workplace, we have to stand by on phone. For example a person who works as digital marketing have to monitor the ads activities even though it’s past their work time. We are slowly losing our freedom of time.
By saving enough money and living from our assets, we could live without having to work and do what we love instead.
Chapter 5 : Income — Ego = Savings
Everyone in the world knows that savings is income decreased by your expense, and if you want to increase your savings, you should either decrease your expense and increase your income.
But what if I told you most of the middle income family’s expense is because their own ego they want a brand new clothes even though they still have good clothes, they want to eat at fancy restaurant, want to have a brand new phone, want to have a branded bag.
And all of that is probably to impress their friends, or make themselves look good. Be careful with this trap, be humble, the only way to get rich is not to spend your money especially on useless things.
Being rich is more about controlling emotion than being smart, suppressing your ego to impress other people, refrain from buying useless things and increasing your assets.
Chapter 6 : It only make sense
Let’s say you are a new investor, and you have a new great investment opportunity. The calculation proves that it is a great investment but it requires a huge sum of money that it makes you anxious ? Would you follow your emotion and or the calculation ?
Personally I would pass on that kind of investment, one reason why I want to become rich is I want to live peacefully, and if that makes me anxious, I would pass on it since I would lost my peaceful emotion. That’s also what the book teach me. Make sense is better than rational.
