This books consists of 20 short stories about money covering topics like investing, saving, financial independence and greed. It is a short read but presents powerful concepts.
Money management is more about psychology than mathematics
Living below your means is the best way to achieve financial independence
Financial independence is less about wealth but more about the freedom it offers
Compounding is the 8th wonder in the world if you understand how it works
Volatility is the fee paid to see the real effects of compounding
Tail events are responsible for the majority of returns
Pessimism gains more attention than optimism
Savings into fixed instruments is okay if it allows you to sleep at night
Monetary decisions in hindsight always seem obvious. History is not a predictor of future. Always expect the unexpected.
People are emotional and decisions are not always rational but psychologically correct in the context
The premise of this book is that doing well with money has a little to do with how smart you are and a lot to do with how you behave. And behavior is hard to teach, even to really smart people.
Two topics impact everyone, whether you are interested in them or not: health and money.
A good definition of an investing genius is the man or woman who can do the average thing when all those around them are going crazy.
THE HIGHEST FORM of wealth is the ability to wake up every morning and say, “I can do whatever I want today.”
MONEY HAS MANY ironies. Here’s an important one: Wealth is what you don’t see.
Past a certain level of income, what you need is just what sits below your ego.