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The Psychology of Money.
Money is a tool. Are you using it effectively?
Published Oct 8, 2025 · Around 2 minutes to read
This book was an easy, eye-opening read. There’s nothing groundbreaking in it. But you sometimes need to see things in a different perspective. And this book will help you see money in a new light via entertaining short stories.
I also think wrapping dry financial advice with engaging short stories is brilliant.
A few lessons from the book that stood out to me:
- Comparing yourself to others is the fastest path to ruin. I try to live by the principle: look at those who have less and be grateful. “Modern capitalism is a pro at two things: generating wealth and generating envy. Perhaps they go hand in hand; wanting to surpass your peers can be the fuel of hard work. But life isn’t any fun without a sense of enough. Happiness, as it’s said, is just results minus expectations.”
- Independence is the ultimate goal. But how much money will it take? ‘The Simple Path to Wealth’ guideline is 25x your salary, or a 4% annual draw rate. I have a number in mind for myself. But I won’t stop working even when I reach that, because I just love design too much.
- You and I are playing different games. Bitcoin, Tesla, Gamestop. I jumped on these bandwagons because everyone else did. But the people investing in these things had different timelines and goals. I didn’t know what I really wanted at that time. Maybe I wanted to get lucky and get rich quick? I got burned badly. But I know now that I want long-term stability. You cannot lose if you do not play.
- Money is math. Math is cold and calculated. But people use money. And people are warm and irrational. So what other people do with their money probably won’t work for you. Do your thing.
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P.S. What do you own? And why?
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