Linda Leitz: Psychology of money – Colorado Springs Gazette

The personal finance books available to consumers are a mixed bag. Some big names who have no background in finance, except being successful in a different career, have written books that give direction on finances.

People who have no financial credentials have built empires on publishing and speaker on finance. Academics with extensive financial expertise have written some wonderful books about finance, but some of those books are a bit difficult to wade through.

Morgan Housel is a journalist who has reported on finance, as well as taken a thoughtful and intentional approach to his family’s earning, saving, and investing. In his book, “The Psychology of Money,” he has the perfect blend of good journalistic research and bringing in academic concepts and research.

Ideas are explained in understandable terms being condescending. Far from having a one-size-fits-all approach or promising a secret sauce that will magically make you rich over night, as too many personal finance books do, Housel explains general concepts and emphasizes the importance of making decisions that make sense for you instead of following the herd.

He also explains the negative effect that emotions can have on finance. Greed, panic, and a sense of infallibility can all cause negative outcomes for us financially. Housel has multiple examples from recent history and people he has known where good and bad outcomes are impacted by ego and emotion.

The more specific an issue is to you, the less likely that you’ll be able to find a book that’s written for mass audiences that will completely address your concerns. This is true of books on self help, politics, and certainly on money.

A good approach is to use the book to get an overview and understand important concepts. Then you can either do additional research around your particular situation or you hire a professional to customize strategies and solutions for you.

When missteps can have big consequences — and this can definitely be the case with monetary issues — working with a professional with a philosophy and approach that’s compatible to yours is a good approach. Housel shares in this book how he has and continues to manage his finances, and is adamant that it works for him because it’s specific to him and his family.

He also stresses that his …….


Leave a Reply

Your email address will not be published. Required fields are marked *