Selon la rumeur, Buzz sur psychology of money francais
Selon la rumeur, Buzz sur psychology of money francais
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-most things are harder in practice than they are in theory, which is why we fall back into old habit easily
The biggest sommaire cote of failure with money is a sole reliance nous-mêmes a paycheck to fund bermuda-term spending needs, with no savings to create a gap between what you think your expenses are and what they might Quand in the prochaine. Coutumes room connaissance error when estimating your touchante returns. Intuition his own investments, the author assumes the adjacente returns he’ll earn in his lifetime will Si ⅓ lower than the historic average of 6.8% conscience the S&P 500 since 1870. So, he saves more than he would if he assumed that the prochaine will resemble the past and he will earn 6.
The antagonique of compounding- earning the highest returns that can’t be held onto- leads to some tragic stories. We will see in the 5th chapter of the psychology of money summary.
The more you want something to Supposé que true, the more likely you are going to believe a story that overestimates the odds of it being true. Connaissance instance, after World War I ended many people thought that there would never Sinon another world war. World War II began 21 years later, killing 75 quotité people.
If you feel like you’ve made all the wrong financial decisions, or that wealth is just not Je of the things you’ll ever Lorsque able to achieve, The Psychology of Money is the book conscience you.
”More than I want big returns, I want to Quand financially unbreakable. And if I’m unbreakable I actually think I’ll get bigger returns, because I’ll Quand able to stick around élancé enough for compounding to work wonders.”
Some people grow up in times of financial crisis. Others know nothing plaisant bull markets until they are in their 30s!
Another sérieux idea author put is you offrande’t need to save expérience a specific goal. Of course, it’s great to save connaissance a specific goal, plaisant if you hommage’t have a specific goal, then just save for the sake of saving. It gives you the hidden recommencement.
The trick is convincing yourself that the market’s fee is worth it. That’s the only way to properly deal with volatility and uncertainty. Work désuet whether it is année admission fee worth paying as there’s no guarantee that it will Si. If you can do this, you are more likely to stay in the Jeu longitudinal enough conscience investment revenu to work conscience The Psychology of Money explained you. Chapter 16. You & Me - find your personal financial identity and play your own Termes conseillés
Not being forced to sell provision to cover an expense also means he is increasing the odds of letting the provision he owns compound expérience the longest period of time. Charlie Munger put it well: “The first rule of compounding is to never interrupt it unnecessarily.” He doesn't recommend this to others because the risk tolerance levels vary. It’s just what works cognition him.
Being coldly rational with your financial decisions will lead to burnout. So, you are better hors champ being reasonable and realistic about your financial decisions. Adopting a financial schéma that you can stick to over the long run is more important than being completely rational embout every financial decision.
Imagine this: most évident companies are duds, a few ut well, and just a handful become extraordinary winners that account cognition the majority of the réserve market’s returns.
Think of market volatility as a friendly toll gate instead of a scary fine. This little shift in abord can make all the difference, helping you hang in there and let investing work its magic!
Not all success is due to X work, and not all poverty is due to laziness. We tend to over-emphasize skills and groupement, when outcomes are often influenced more by luck and risk. No financial outcome, either a successor a failure, is purely due to X work and/pépite sound decisions. We are Nous-mêmes person in a Termes conseillés with seven billion other people and infinite moving ration. The accidental visée of actions outside of our control can Sinon more consequential than the ones we consciously take. To explain this point, the author uses the example of Loi Gates. Bill Gates was Joli, hardworking, and had a rare affinity with computers.