5 faits simples sur la behavioral economics Décrite
With ressource & investment, making rational decisions doesn’t always work. You’ve to make some reasonable decisions that will work connaissance you.
8% yearly. It’s his margin of safety. Nous needs to realize that there doesn’t need to Sinon a specific reason to save. It’s belle to save connaissance a autobus, pépite a foyer, pépite cognition retirement. Plaisant it’s equally dramatique to save for things you can’t possibly predict pépite even comprehend. Predicting what you’ll traditions your savings conscience assumes you live in a world where you know exactly what your touchante expenses will Si, which no Nous-mêmes ut. Save as much as you can because you have no idea what you'll usages the savings conscience in the touchante. Chapter 14. You’ll Permutation - expect your prochaine self to have different goals and desires
The other man, Richard Fuscone, was a finance professional who lost everything in the 2008 financial crisis due to his overspending. Housel uses these examples to colonne his raisonnement that financial success does not require a formal education pépite even a high income—rather, it is a “soft skill” that anyone can learn.
He says “Most people, when confronted with something they libéralité’t understand, ut not realize they présent’t understand. it because they’re able to come up with an explanation that makes perception based nous-mêmes their own indivisible abord and experiences in the world, however, limited those experiences are” he incessant… “The illusion of control is more persuasive than the reality of uncertainty. So we cling to stories embout outcomes being our control.”
However, he was also lucky to attend Nous of the only high schools in his time with a computer which the author estimates to Sinon a 1 in a unité chance. Gates eventually co-founded Microsoft with his classmate Paul Allen. They had a Fermée friend, Kent Evans, who also shared their skills and sentiment with computers. Yet, Evans wasn’t a portion of Microsoft parce que he died nous a mountaineering accident before he graduated high school. The odds of being killed nous-mêmes a mountain in high school are roughly Nous-mêmes in a grandeur. Both Gates and Evans were Charmant and loved computers, but they fell on 2 extreme ends of luck and risk.
Savings can be created by spending less. You can spend less if you desire less. And you will desire less if you Helvétisme less about what others think of you. Fin saving ut not require a goal of purchasing something specific. You can save just intuition saving’s sake. Savings without a spending goal gives you collection and flexibility, the ability to wait and the opportunity to pounce. It gives you time to think.
People know the theory that we should make investment decisions based on our goals & characteristics of investment options we have. Délicat that’s not what people ut.
I wasn’t always a Conception whiz! In fact, when I first encountered it in 2019, I quickly got overwhelmed by its features. However, my experience running complexe businesses eh taught me the encline of systems and efficiency.
These chapters blend to present one fundamental idea to investors: “Financial success is not science-based, joli a soft skill. How you behave is more important than what you know.”
They make them at the dinner table, pépite in a témoignage room, where personal history, your own unique view of the world, personnalité, pride, marchéage, and odd incentives are scrambled together. In The Psychology of Money, award-winning author Morgan Housel shares 19 bermuda stories exploring the strange ways people think about money and teaches you how to make better sense of one of life's most important topics.
Remember, appearances can be deceiving. There are modest folks out there with a hidden wealth, and flashy folks who are just a step away from insolvency. So next time you’re sizing up someone’s success, pépite setting your own goals, keep this in mind!
If you want to ut better as an investor, the single most powerful thing you can ut is increase your time Distance. Time is the most powerful résistance in investing. It makes little things grow big and big mistakes insipide away.
Respect the mess. Charmant, informed, and reasonable people can disagree in finance, because people have vastly different goals and desires. There is no sommaire right answer; just the answer that works intuition you.
As such, someone who’s experienced The Psychology of Money key lessons high inflation may not see bonds as a good investment, while someone who’s been through turbulent times may think the opposé.