If you are in your teens and want to understand why you should take your personal finances and investing seriously, read the book The Psychology of Money, by Morgan Housel.
To give you a brief intro about writer, Morgan Housel the former columnist at The Wall Street Journal and The Motley Fool. Morgan is currently a partner at Collaborative Fund.
Morgan has spoken at more than 100 conferences across the globe on topics like behavioral finance and history.
Here are the key points that I wanted to share with you, and I want you to read the book to understand them properly…
1. Do not judge, nothing is exactly the same the way you see it.
2. Every individual reacts to a situation based on the past information/experiences that they have.
3. Notice what you have and use it properly, before it compounds or goes by.
4. Establish a relationship with the money you have you earn, behave responsibly when you have it.
5. Luck and risk goes hand in hand.
6 Treat others failure, just the way you could have treated yours (Aah, I wish luck would have favored me a bit and huhh he was stupid enough to take the risk.)
7. People who has control over their time, are happier than others.
8. Make decisions, right or wrong can be calculated based on what’s compounding.
9. What matters is how much wealth you have and not how much money you have made.
10. Do not boundary your future scope of growth based on any [past information.
11. Focus on broad aspects, do not limit your thoughts.
12. 1% of your holding can give you 99% of the total money you hold.
13. Longer the time you give, more return you get.
14. Stay debt free, it gives peace of mind and keeps you in control of your life.
This book tells you exactly why you should take risk, make bold decisions and start investing at the earliest.
