Pranam
A pep up how to but where is the freedom defined?. "It is impossible to
think of a story about Ronald Read performing a heart transplant *better
than a Harvard-trained surgeon*. Or designing a skyscraper *superior to the
best-trained architects*. There will never be a story of *a janitor
outperforming the world’s top nuclear engineers.*
But these stories do happen in investing.
The fact that Ronald Read can coexist with Richard Fuscone has two
explanations.
*One, financial outcomes are driven by luck, independent of
intelligence and effort. That’s true to some extent, and this book will
discuss it in further detail.*
* Or, two (and I think more common), that financial success is not a
hard science. It’s a soft skill,*
where how you behave is more important than what you know.
I call this soft skill the psychology of money. The aim of this book is to
use short stories to convince you that soft skills are more important than
the technical side of money. I’ll do this in a way that will help
everyone—from Read to Fuscone and everyone in between—make
*better financial decisions.*
These soft skills are, I’ve come to realize, greatly *underappreciated.*
Finance is overwhelmingly taught as a math-based field, where you put data
into a formula and the formula tells you what to do, and it’s assumed that
you’ll just go do it.
This is true in personal finance, where you’re told to have a six-month
emergency fund and save 10% of your salary.
It’s true in investing, where we know the exact historical correlations
between interest rates and valuations.
And it’s true in corporate finance, where CFOs can measure the precise cost
of capital.
Xxxxxxxxxxx
The highest form of wealth is the ability to wake up every morning and
say, “I can do whatever I want today.” The ability to do what you want,
when you want, with who you want, for as long as you want, is priceless. It
is the highest dividend money pays”. More than your salary. More than the
size of your house. More than the prestige of your job. Control over doing
what you want, when you want to, with the people you want to, is the
broadest lifestyle variable that makes people happy. Six months’ emergency
expenses means not being terrified of your boss, because you know you won’t
be ruined if you have to take some time off to find a new job. More still
means the ability to take a job with lower pay but flexible hours. Maybe
one with a shorter commute. Or being able to deal with a medical emergency
without the added burden of worrying about how you’ll pay for it. Then
there’s retiring when you want to, instead of when you need to. The
hardest thing about this was that I loved the work. And I wanted to work
hard. But doing something you love on a schedule you can’t control can feel
the same as doing something you hate. There is a name for this feeling.
Psychologists call treactance. When you accept how true that statement is,
you realize that aligning money towards a life that lets you do what you
want, when you want, with who you want, where you want, for as long as you
want, has incredible return. Part of what’s happened here is that we’ve
used our greater wealth to buy bigger and better stuff. But we’ve
simultaneously given up more control over our time. At best, those things
cancel each other out.
A wise old owl lived in an oak,
The more he saw the less he spoke,
The less he spoke, the more he heard,
Why aren’t we all like that wise old bird
Compared to generations prior, control over your time has diminished.
And since controlling your time is such a key happiness influencer, we
shouldn’t be surprised that people don’t feel much happier even though we
are, on average, richer than ever. What do we do about that? It’s not an
easy problem to solve, because everyone’s different. The first step is
merely acknowledging what does, and does not, make almost everyone happy.No
one—not a single person—said you should choose your work based on your
desired future earning power. What they did value were things like quality
friendships, being part of something bigger than themselves, and spending
quality, unstructured time with their children. “Your kids don’t want your
money (or what your money buys) anywhere near as much as they want you.
Specifically, they want you with them,” Pillemer writes. Take it from those
who have lived through everything: Controlling your time is the highest
dividend money pays. "-- It is pragmatic yet sustenance of wealth of all
descriptions depends on many factors, including the use of freedom which
many a times turned out to be SO NOT. KR IRS 24722
On Sun, 24 Jul 2022 at 11:33, Rangarajan T.N.C. <[email protected]>
wrote:
>
> https://www.planetayurveda.com/traditional-books/the-psychology-of-money-by-morgan-housel.pdf
>
>
--
You received this message because you are subscribed to the Google Groups
"Thatha_Patty" group.
To unsubscribe from this group and stop receiving emails from it, send an email
to [email protected].
To view this discussion on the web visit
https://groups.google.com/d/msgid/thatha_patty/CAL5XZorH1XJxiNa4ByYzn6kNk8DA5W3EhByRjuwMPm8N2YVuDw%40mail.gmail.com.
