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The psychology of money 👀🤑
1. The most valuable asset you have is not money but time.
2. Compound interest can turn even small amounts of money into large sums of money over time. It's important to start investing early and invest consistently.
3. Risk is not one size fits all: Risk for one individual may not be the same for another individual. Housel encourages readers to evaluate their risk tolerance and adjust their financial strategy accordingly.
4. The Power of Saying No: Learn to say no when faced with financial temptation and impulsive spending. This insight is critical to avoiding debt traps and building a financially secure future.
5. Learn from the past: research financial history to have a broader view of the ups and downs of the market. By learning from past crises and booms, you can make more informed decisions, minimize risks and seize opportunities.
6. Lifestyle inflation trap: When income increases, spending often increases. "The Psychology of Money" warns against this and recommends increasing savings and investment income to improve financial security.
7. Focus on what you can control: while you can't predict the stock market or macroeconomic trends, you can control your savings rate, spending habits, and decisions your investment