“Financial success is not a difficult science. This is a soft skill where how you act is more important than what you know. I call this soft skill the psychology of money."The purpose of this book is to use short stories to convince you that soft skills are more important than the technical side of money."
"We think about money and we study it in a way that is too close to physics (with rules and laws) and not close enough to psychology (with emotions and nuances). “Physics is not controversial. It is regulated by law. Finance is different. It's based on people's behavior."
"People do crazy things with money. But nothing is crazy. Here's the thing: people of different generations, raised by different parents, who earn different incomes and have different values, are born in different parts of the world. world, born in different economies, and experiencing different labor markets with different incentives and perks, learned very different lessons."
“In theory, people should make investment decisions based on their goals and the characteristics of the investment opportunities currently available to them. But people don't do that. Economists have found that throughout their lives, people's investment decisions are heavily influenced by the experiences of investors in their own generation – especially those in their early adult lives.
“Your view of money is formed in a different world. And if that's the case, a view of money that one group of people finds outrageous may make a lot of sense to another. “Few people make financial decisions with just a spreadsheet. You do it at the dinner table or at a company meeting. A place where your personal history, your own unique worldview, ego, pride, marketing, and whimsical incentives are mixed into a narrative that suits you.
“Luck and risk is the fact that every outcome in life is determined by forces other than individual effort. They are so similar that one cannot trust the one without respecting the other equally. Both of these things happen because the world is too complex to let 100% of your actions determine 100% of your results.”
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