Want more money?
If you respect money and play the game of money by knowing the rules, you will see a world of abundant money and will make money work for you.
So let me share 18 little money rules from one of my favourite columnists – Morgan Housel
- Emotions can override any level of intelligence.
- Confidence rises faster than ability, especially among young men.
- The only way to build wealth is to have a gap between your ego and your income.
- No one’s impressed with what you have.
- An asset’s ability to let you do what you want, when you want, with who you want, is ROI that can’t be found on a spreadsheet.
- About once a decade people forget that bubbles form and burst about once a decade.
- Your investing ability is unproven until it’s survived a calamity.
- Spending money to show people how much money you have is the surest way to have less money.
- Avoid disaster, be patient, and you don’t need many smart decisions to do well over time.
- Big words mask little thoughts.
- You will adjust to most positive financial circumstances, except when it causes you to lose control over your time, which will always hurt.
- The goal of investing isn’t to minimise boredom, it’s to maximise returns.
- It’s easier to lie with numbers than words. As the saying goes, more fiction has been written in Excel than in Word.
- Your circle of competence is smaller than you think. Your susceptibility to bias is larger than you think.
- Reducing your desires has the same effect as leveraging your assets, but with no downside risk.
- Solutions to problems can be shockingly simple; Getting people to adhere to simple solutions can be shockingly difficult.
- Debt removes options, savings add them.
- Compounding requires absorbing damage so you’re never forced to quit.
ALSO READ: 11 rules for successful property investing