The Psychology of Money

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People make real-world financial and investment decisions based on their beliefs and life experiences, not on hard math or data. Risk, luck, and skill also shape an individual’s chance for financial success. To achieve financial success, make a reasonable plan that focuses on compounding annual gains over time. Be ready to adapt when the markets inevitably change and don’t allow greed to distract you from your goals. Everyone will have different investment techniques, and the key is to choose the plan and techniques that will give you the greatest chance of reaching your personal financial goals.

About the Author

Morgan Housel is an author, partner at Collaborative Fund, and former columnist at The Motley Fool and The Wall Street Journal. He has been awarded the New York Times Sidney Award, the Best in Business Award from the Society of American Business Editors and Writers, and was a finalist for the Gerald Loeb Award for Distinguished Business and Financial Journalism.