The Psychology of Money is a book written by Morgan Housel that explores the intersection between finance and human behavior. The book examines how people approach money, the various biases that can affect financial decision-making, and the importance of understanding the role that psychology plays in wealth creation and management.
The book begins by emphasizing that financial success is not solely determined by intelligence or expertise in finance. Rather, it is more about having the right mindset and behavior towards money. Housel introduces the idea of "money stories" – the beliefs and values people have towards money that shape their financial decisions. These stories are often inherited from family and society, and they can have a significant impact on how individuals approach money.
