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The Psychology of Money: Timeless lessons on wealth, greed, and happiness Paperback – Import, 5 December 2021
Morgan Housel (Author) Find all the books, read about the author, and more. See search results for this author |
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But in the real world people don't make financial decisions on a spreadsheet. They make them at the dinner table, or in a meeting room, where personal history, your own unique view of the world, ego, pride, marketing, and odd incentives are scrambled together. In The Psychology of Money, award-winning author Morgan Housel shares 19 short stories exploring the strange ways people think about money and teaches you how to make better sense of one of life's most important topics.
- Print length256 pages
- LanguageEnglish
- PublisherHarriman House Publishing
- Publication date5 December 2021
- Dimensions13.84 x 2.54 x 21.46 cm
- ISBN-100857197681
- ISBN-13978-0857197689
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About the Author
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Product details
- Publisher : Harriman House Publishing (5 December 2021)
- Language : English
- Paperback : 256 pages
- ISBN-10 : 0857197681
- ISBN-13 : 978-0857197689
- Dimensions : 13.84 x 2.54 x 21.46 cm
- Best Sellers Rank: 9 in Books (See Top 100 in Books)
- Customer Reviews:
About the author

Morgan Housel is a partner at The Collaborative Fund and a former columnist at The Motley Fool and The Wall Street Journal.
He is a two-time winner of the Best in Business Award from the Society of American Business Editors and Writers, winner of the New York Times Sidney Award, and a two-time finalist for the Gerald Loeb Award for Distinguished Business and Financial Journalism. He lives in Seattle with his wife and two kids.
Customer reviews

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Top reviews from Australia
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One consistent message is to save. That said, this book is time and money well spent.
Many of the thoughts in this book helped me understand a lot of questions I had about why people do what they do when it literally didn't make any rational sense.
The book finishes with the author's conservative strategy with investing and is a fresh change from many author's boasting huge returns and "beating the market".
Most useful point of many in the ‘psychology of money I personally picked up on, was the concept of not everyone investing does it for the same reasons or time frames. I’m glad I read this book.
Top 3 books all time.
Down to earth, point out to what is the problem, then you can apply the solution with your style
Realistic about human behaviour
Top reviews from other countries

First level of investor is the one who knows money can be made in the mkt, but doesn't know how and starts to trade without any knowledge.
Second level investor have made profit or loss on his capital and starts to find out where did he has gone wrong and starts learning about some basic concepts such as PE ratio.
Third level of investor starts finding value in whatever the scrip he has been following and starts finding justification that it is costly or cheap and buy or sell them.
Fourth level investor follows and checks if the price have gone up or not very often and loses faith if it doesn't go up after he bought it, and if price doesn't go up he sells it and looks for another one.in a short span of months. Again goes back to drawing board and finds what went wrong.
Then come the whole talk of buffetology and starts to find companies like that and invest in them if he felt that it was cheap.
But everyone forgets that buffet is buffet because of his principles and patience which helped him in compounding for very long time such as 70-80 years which very few do it. That's when actually psychology matters and thats what Morgan tries to tell us in this book that more that analysis of the scrip, conviction that you calculated and the patience to hold it at least for several decades remains intact only then the wealth would be created or else you would be just a person among a crowd doing nothing but ordinary things in life. And explains that the world is actually big and we are just a blip in it. It gives us all a great humility and convinces us to be humble and show gratitude to others.


Reviewed in India on 29 September 2020
First level of investor is the one who knows money can be made in the mkt, but doesn't know how and starts to trade without any knowledge.
Second level investor have made profit or loss on his capital and starts to find out where did he has gone wrong and starts learning about some basic concepts such as PE ratio.
Third level of investor starts finding value in whatever the scrip he has been following and starts finding justification that it is costly or cheap and buy or sell them.
Fourth level investor follows and checks if the price have gone up or not very often and loses faith if it doesn't go up after he bought it, and if price doesn't go up he sells it and looks for another one.in a short span of months. Again goes back to drawing board and finds what went wrong.
Then come the whole talk of buffetology and starts to find companies like that and invest in them if he felt that it was cheap.
But everyone forgets that buffet is buffet because of his principles and patience which helped him in compounding for very long time such as 70-80 years which very few do it. That's when actually psychology matters and thats what Morgan tries to tell us in this book that more that analysis of the scrip, conviction that you calculated and the patience to hold it at least for several decades remains intact only then the wealth would be created or else you would be just a person among a crowd doing nothing but ordinary things in life. And explains that the world is actually big and we are just a blip in it. It gives us all a great humility and convinces us to be humble and show gratitude to others.


1. Expectations change even slower than reality. Everyone sees the world they have seen it before.
2. Everyone plays the game of investment differently. You need to define your game.
This is a fantastic book. It's not a book about investments. It is a book about your mind, and mine and how it thinks about money, savings, expenditure and investments. And, it is brilliant. Pick it up now.



The book uses plain English, easy to read and to understand.
He exposed many myths and fake assumptions in the business world, especially the dilemma of luck vs. talent.
It is fascinating to know for example that Bill Gates studied in the only high-school in the US that by luck had a computer in 1968, one in a million chance.
The chapter 19 is like a summary of major ideas but there are some interesting ideas to think about and we may agree or disagree with it:
1. "You are one person in a game with 7 billion other people and infinite moving part", so we underestimate significantly the role of luck and world complexity.
2. "Saving is income minus ego" so be careful with your ego spending!
3 "Happiness is results minus expectations", so be careful with your expectations!
3. "Individual wealth is what you don't see, hidden" so big house, fancy car or Instagram photos are spends or debts of Individual, the visible part you see, not their wealth.
4. "Customer is always right" and "customers don't know what they want", both accepted business wisdom.
5. Napoleon’s definition of a military genius was, “The man who can do the average thing when all those around him are going crazy.”