The Psychology of Money provided thought provoking personal finance insights at a 30,000 foot view. Housel details the ways psychology influences money management, specifically ego and mindset. I agree with the argument he makes that true wealth is autonomy. The ability to choose what you do and how you do it professionally and personally leads to happiness. I also appreciated his discussions on the impact of long tails (unlikely events drive outcomes both good and bad), and luck and risk.

Favorite quotes:

“When you define savings as the gap between your ego and your income you realize why many people with decent incomes save so little.”

“There’s only one way to stay wealthy : some combination of frugality and paranoia. Getting money and keeping money are two different skills.”

“Money’s greatest intrinsic value — and this can’t be overstated — is its ability to give you control over your time.”

“But there’s only one way to stay wealthy : some combination of frugality and paranoia. Getting money and keeping money are two different skills.”

“The problem for many of us is that it is easy to find rich role models . It’s harder to find wealthy ones because by definition their success is more hidden. The world is filled with people who look modest but are actually wealthy and people who look rich who live at the razor’s edge of insolvency. Keep this in mind when quickly judging others ’ success and setting your own goals.”

“Having a strong sense of controlling one’s life is a more dependable predictor of positive feelings of wellbeing than any of the objective conditions of life we have considered.”

“When you define savings as the gap between your ego and your income you realize why many people with decent incomes save so little.”