The Psychology of Money
Module Units
- 1. Introduction
- 2. Book Summary of The Psychology of Money
- 3. The Greatest Show On Earth
- 4. No One’s Crazy
- 5. Luck And Risk
- 6. Never Enough
- 7. Confounding Compounding
- 8. Getting Wealthy Vs. Staying Wealthy
- 9. Tails, You win
- 10. Freedom
- 11. Man In The Car Paradox
- 12. Wealth Is What You Don’t See
- 13. Save Money
- 14. Reasonable > Rational
- 15. Surprise!
- 16. Room For Error
- 17. You’ll Change
- 18. Nothing’s Free
- 19. You And Me
- 20. The Seduction Of Pessimism
- 21. When You’ll Believe Anything
- 22. All Together Now
- 23. Confessions
You’ll Change
(Chapter 14)
We are terrible predictors of our future selves. Our present needs, wants, and dreams are not the same as our future needs, wants, and dreams.
“The End of History Illusion is what psychologists call the tendency for people to be keenly aware of how much they’ve changed in the past, but to underestimate how much their personalities, desires, and goals are likely to change in the future.”
The result is that long-term plans and decision-making is very difficult to do effectively.
Accept the reality that individuals are prone to change. What matters to you today, may be viewed as inconsequential in a decade.
“Sunk costs—anchoring decisions to past efforts that can’t be refunded—are a devil in a world where people change over time. They make our future selves prisoners to our past, different, selves. It’s the equivalent of a stranger making major life decisions for you.”
Explore the intriguing book "Psychology of Money" on YouTube with Vineet Patawari, CEO of Elearnmarkets & StockEdge.
Michael George Knight
This book summary has been contributed by Michael George Knight, who is the founder of Bestbookbits.com Bestbookbits is the world's largest free book summary website in video, written and audio format educating people around the world with the best book bits in the shortest amount of time. They are a nonprofit organization with the mission to create an educated world. You can read many other book summaries on various genres by clicking on the following link: Bestbookbits.com
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