The Psychology of Money

Review

I used to think smart people made smart financial decisions.

That if I just learned enough about investing, studied the right strategies, and tracked the numbers carefully, I'd come out ahead.

The Psychology of Money completely changed that assumption.

Morgan Housel's argument is deceptively simple: financial success isn't about intelligence. It's about behaviour. About patience, consistency, and how you respond when things get uncomfortable.

One idea that stuck with me was the concept of tail events — that a small number of decisions and moments account for the majority of outcomes. Most of the time, doing nothing is the right move.

It's not the most exciting message. But it's probably the most honest book about money I've read.