The Psychology of Money

In this exploration of financial psychology, Morgan Housel argues that wealth accumulation is less about technical expertise and more about behavioral discipline. He illustrates through various anecdotes how luck and risk play outsized roles in success, often overshadowing individual talent or effort. A central theme is the power of compounding, which requires long-term endurance and the flexibility to survive market volatility without making emotional mistakes. Housel also warns against the social pressure to display wealth through spending, suggesting that true financial independence comes from maintaining a gap between ego and income. Ultimately, the text highlights that knowing when you have "enough" is vital to preserving both your capital and your happiness