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Writer's pictureParikshit Khanna

Short Summary of The Psychology of Money

Updated: Feb 8, 2022



I got my hands on the book called The Psychology of Money, and it was one of the best books on money I have read so far. Here is the short summary: The Psychology of Money



1. Stop relying on lottery wins to get rich quickly in a short period.

2. Being optimistic about future events and calculating future risks as well.

3. True wealth is what you don't see. If you see someone wealthy, do try to understand their mindset.

4. You pay the price for everything. While investing in anything, you need to learn more about that option; the time you invest in learning will be a price you pay.

5. Growth is driven by compounding, but destruction can occur in one shot. Self-control is the best example of compounding. Stay away from destructive habits such as overspending and buying expensive gadgets.

6. Take your financial decision independently, don't buy expensive cars, watch, mobile to show anyone.

7. Save 20% of what you earn, learn to manage your money.

8. Live below means.

9. Seek pleasure from low pleasure activities such as book reading and listening to songs.


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