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Over 7 million copies sold around the world. The original book from Morgan Housel, the New York Times bestselling author of Same As Ever.

Doing well with money isn't necessarily about what you know. It's about how you behave. And behavior is hard to teach, even to really smart people.

Money – investing, personal finance, and business decisions – is typically taught as a math-based field, where data and formulas tell us exactly what to do. But in the real world people don't make financial decisions on a spreadsheet. They make them at the dinner table, or in a meeting room, where personal history, your own unique view of the world, ego, pride, marketing, and odd incentives are scrambled together.

In
The Psychology of Money, award-winning author Morgan Housel shares 19 short stories exploring the strange ways people think about money and teaches you how to make better sense of one of life's most important topics.

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Morgan Housel, The Psychology of Money, Wall Street Journal, Bestseller, Housel, Wall Street Journal

Morgan Housel, The Psychology of Money, Wall Street Journal, Bestseller, Housel, Wall Street Journal

Morgan Housel, The Psychology of Money, Wall Street Journal, Bestseller, Housel, Wall Street Journal

Morgan Housel, The Psychology of Money, Wall Street Journal, Bestseller, Housel, Wall Street Journal

Morgan Housel, The Psychology of Money, Wall Street Journal, Bestseller, Housel, Wall Street Journal

Morgan Housel, The Psychology of Money, Wall Street Journal, Bestseller, Housel, Wall Street Journal

Editorial Reviews

Review

“Housel's observations often hit the daily double: they say things that haven't been said before, and they make sense.” ―Howard Marks, Director and CoChairman, Oaktree Capital & Author, The Most Important Thing and Mastering the Market Cycle

“Morgan Housel is one of the brightest new lights among financial writers. He is accessible to everyone wanting to learn more about the psychology of money. I highly recommend this book.”
―James P. O’Shaughnessy, Author, What Works on Wall Street

“The Psychology of Money is bursting with interesting ideas and practical takeaways. Quite simply, it is essential reading for anyone interested in being better with money. Everyone should own a copy.”
―James Clear, Author, millioncopy bestseller Atomic Habits

“Few people write about finance with the graceful clarity of Morgan Housel. The Psychology of Money is an essential read for anyone who wants to make wiser decisions or live a richer life.”
―Daniel H. Pink, #1 New York Times Bestselling Author of WHEN, TO SELL IS HUMAN, and DRIVE

“Morgan Housel is that rare writer who can translate complex concepts into gripping, easy-to-digest narrative. The Psychology of Money is a fast-paced, engaging read that will leave you with both the knowledge to understand why we make bad financial decisions and the tools to make better ones.”
―Annie Duke, Author, Thinking in Bets

“Morgan Housel’s new book clarifies – with razor sharp and accessible insight - that building wealth is a mindset problem, not an investment problem. This is the first book any investor should read; in conjunction with a good index fund, becoming wealthy lies within everyone’s grasp.”
―Tim Hale, Managing Director at Albion Strategic Consulting and author of Smarter Investing: Simpler Decisions for Better Results

“It’s one of the best and most original finance books in years.”
―Jason Zweig

About the Author

Morgan Housel is a partner at The Collaborative Fund and a former columnist at The Motley Fool and The Wall Street Journal. He is a two-time winner of the Best in Business Award from the Society of American Business Editors and Writers, winner of the New York Times Sidney Award, and a two-time finalist for the Gerald Loeb Award for Distinguished Business and Financial Journalism. He serves on the board of directors at Markel.

Product details

  • Publisher ‏ : ‎ Harriman House; Reprint edition (March 2, 2021)
  • Language ‏ : ‎ English
  • Hardcover ‏ : ‎ 256 pages
  • ISBN-10 ‏ : ‎ 0857199099
  • ISBN-13 ‏ : ‎ 978-0857199096
  • Item Weight ‏ : ‎ 1 pounds
  • Dimensions ‏ : ‎ 5.85 x 0.85 x 8.8 inches
  • Customer Reviews:
    4.7 4.7 out of 5 stars 58,818 ratings

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Morgan Housel
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Morgan Housel is a partner at The Collaborative Fund. He is a two-time winner of the Best in Business Award from the Society of American Business Editors and Writers, winner of the New York Times Sidney Award, and a two-time finalist for the Gerald Loeb Award for Distinguished Business and Financial Journalism. He lives in Seattle with his wife and two kids.

Customer reviews

4.7 out of 5 stars
58,818 global ratings

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Customers say

Customers find the book easy to read and enjoyable. They appreciate the insightful and thought-provoking content, common sense money concepts, and historical data. The short, precise chapters are praised as helpful for beginners. Readers also mention that the book connects with them on an emotional level and provides a fresh perspective on how emotions shape financial decisions.

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1,025 customers mention "Readability"997 positive28 negative

Customers find the book easy to read and enjoyable. They appreciate the concise writing style that makes complex concepts simple. The author provides insightful examples and perspective through short stories. Overall, customers consider it a good read that offers valuable insights.

"...Housel’s conversational writing style makes complex concepts feel straightforward, and his ability to blend financial advice with psychology and..." Read more

"...Lessons on Wealth, Greed and Happiness by Morgan Housel is a timeless work about how our feelings, emotions and interactions with money often..." Read more

"...game for a damn long time is really what wins most. It is well reviewed, and for good reason. It offers some perspective..." Read more

"...+ Engaging Narratives: The use of compelling stories and quotes makes complex concepts approachable and memorable...." Read more

683 customers mention "Insight"650 positive33 negative

Customers find the book insightful and thought-provoking. They say it provides a sense of realization and makes them proactive. The opinions are explained with great examples for ease of digestion. The book is about understanding our behavior and the decisions we make. It provides a good argument behind how everyone thinks about money differently. The book has a lot of good examples, data, and fun facts to get the point across.

"...Housel masterfully explains how small, consistent decisions can lead to huge gains over time, whether in wealth-building, relationships, or personal..." Read more

"...Getting money is one thing. Keeping it is another. • Planning is important, but the most important part of every plan is to plan on the plan..." Read more

"...Instead, this book is about understanding our behavior and the decisions we make to achieve a balanced and calm life with accepting reasonable stock..." Read more

"...It’s also happiness, and it’s balance. This book has a more realistic approach than some of the other personal..." Read more

482 customers mention "Financial wisdom"450 positive32 negative

Customers appreciate the book's financial wisdom. They find it insightful and helpful for rethinking their money habits. The book provides new perspectives on personal finance and investment strategies, encouraging introspection and empowerment. Readers also mention the book is a must-read for understanding the psychology behind spending and investing.

"...time, living below your means, and the intangible rewards of financial security are powerful reminders that happiness isn’t just about how much you..." Read more

"Psycholology of Money: Timeless Lessons on Wealth, Greed and Happiness by Morgan Housel is a timeless work about how our feelings, emotions and..." Read more

"...Other than that hideous paragraph, The Psychology of Money is a fine book because it makes a huge contribution to financial discussions and what it..." Read more

"...of money, and more importantly your relationship with money. It’s not all money. It’s also happiness, and it’s balance. This book..." Read more

51 customers mention "History"51 positive0 negative

Customers find the book's historical examples and data insightful into money management. They appreciate the author's use of historical economic data to illustrate ebbs and flows. The book is considered an instant classic and well-written, easy to read, and concise.

"...His chapters on the importance of controlling your time, living below your means, and the intangible rewards of financial security are powerful..." Read more

"This is a modern book. It attempts to take a more balanced view of money, and more importantly your relationship with money...." Read more

"...It is so insightful into money management using history, trends and reality. I can’t recommend this book enough." Read more

"Amazing truth!!! History is so important. If you don't know the pass how can you deal with the future. I think it is impossible." Read more

50 customers mention "Short chapters"41 positive9 negative

Customers appreciate the book's brevity and conciseness. They find the chapters easy to read and straightforward. The book is divided into 20 chapters, each covering a different aspect of money. Readers appreciate the flexible thinking and loose timeline.

"...It comes in many forms: a frugal budget, flexible thinking, and a loose timeline - anything that lets you live happily with a range of outcomes...." Read more

"...The book is divided into 19 insightful chapters, each addressing a different aspect of money psychology...." Read more

"This book is an easy read with small chapters that point out some wise money truths...." Read more

"...this book multiple times, I can say hands down Chapters 4 and 5 are the MOST IMPORTANT...." Read more

40 customers mention "Start-up value"30 positive10 negative

Customers find the book helpful for beginners and anyone at any stage. They say the first few chapters are most helpful and it's a good guide for the everyday person who wants to take control of their money. The book is described as a teaching book that anyone of any age can enjoy and benefit from. Readers mention it's a great start in the right direction to get you to start seeing money differently.

"...terms of how to invest and manage my finances, and this is the perfect starting point as I begin this journey...." Read more

"...The book is clear and understandable. The first few chapters seemed most helpful." Read more

"...There is nothing new in the book. It is only good for beginners Correct on the first part. There is nothing new here...." Read more

"Some great takes for the experienced investor/money handler and life participant and a great book for someone in the 20 or 30's that is a little wet..." Read more

30 customers mention "Emotional depth"30 positive0 negative

Customers find the book provides a fresh perspective on how emotions, habits, and experiences shape money. They say it's profound and practical, providing insights on building empathy for oneself and others. The book connects with readers on an empathetic level, giving them peace of mind.

"...Humility, kindness, and empathy will bring you more respect than horsepower ever will. •..." Read more

"...successful; it's about reshaping our entire outlook on wealth, happiness, and what it means to be financially literate in today's world." Read more

"...This book goes beyond traditional financial advice, delving into the emotional, behavioral, and societal influences on our relationship with..." Read more

"The Psychology of Money by Morgan Housel offers a fresh perspective on how our emotions, habits, and experiences shape our financial decisions,..." Read more

56 customers mention "Value for time"25 positive31 negative

Customers have different views on the book's value for time. Some find it useful for achieving a fulfilled and contented life, with its emphasis on patience, humility, and risk management. Others feel it's a waste of time, lacking practicality, and not worth reading if busy.

"...Like all great books, not all is great but the wisdom you do get is very powerful...." Read more

"...about getting rich—it’s about getting smart, getting wise, and getting happy...." Read more

"This books is honestly horrible. I can't believe the 4-5 star ratings...." Read more

"...The chapter titles are attention grabbers that get our attention so that we can read more...." Read more

Save a little more, invest for the long term, and expect the unexpected.
5 out of 5 stars
Save a little more, invest for the long term, and expect the unexpected.
Good investing is not about getting the highest returns. It’s about getting good returns that can be repeated for the longest period of time. “The historical odds of making money in U.S. markets are 50/50 over one-day periods, 68% in one-year periods, 88% in 10-year periods, and (so far) 100% in 20-year periods.” The reality is that “there are few financial variables more correlated to performance than commitment to a strategy during its lean years—both the amount of performance and the odds of capturing it over a given period of time.” With this in mind, the question remains: Why do so many of us buy and sell our stocks when it may in fact be best to do the opposite?The answer is our emotions. Our emotions are what compel us to get married, to root for our favorite sports teams, and to buy our favorite foods. It would be difficult to choose a bag of chips at the supermarket without our emotions—with so many options, all boasting different flavors and styles, pure rationality gets us stuck; we need our emotions to kick in and grab the bag that ‘looks’ the best. In his book, our author has abundant examples of how we behave just the same when it comes to our money and investments, ultimately leading us to buy and sell when we shouldn’t.One of Housel’s most important financial observations is recognizing what our time horizon is. Are we investing for a three-month period, a three-year period, or a thirty-year period? The answer to this question will determine what kinds of investments we should make. “Your personal experiences with money make up maybe 0.00000001% of what’s happened in the world, but maybe 80% of how you think the world works,” Housel writes, “so equally smart people can disagree about how and why recessions happen, how you should invest your money, what you should prioritize, how much risk you should take, and so on.” There is rarely, if ever, a single answer to a financial question, and it is incumbent upon each of us to keep our time horizon in mind when making investment decisions.We are only able to do this, however, if we have some money. Despite our desire to invest and grow our money, it is important to remember to keep some savings, or a “margin of safety,” in case of an emergency. Housel encourages his readers to save money for the unpredictable events that life will surely throw at us. A sudden medical illness or broken car part, for example. How many of us were financially prepared for Covid-19?We invest to get wealthy, and while becoming wealthy may entail some risky bets on the stock market, the key to staying wealthy is not spending. “Wealth is the nice cars not purchased. The diamonds not bought. The watches not worn, the clothes forgone and the first-class upgrade declined.” Real wealth is having control over our time, and getting to do what we want, when we want, with who we want, for as long as we want. The great philosopher Aristotle himself once wrote that “wealth is evidently not the good we are seeking; for it is merely useful and for the sake of something else.” That something else is the freedom to do what we want with our time, and, by extension, our lives.In sum, we should all save a little more than we think we should, invest our money for the long term, and expect the unexpected. Ups and downs in the market happen all the time for reasons we often cannot predict, and buying and selling in an effort to beat the market will rarely lead to large returns. The best investing is done over a long period of time when our money is able to compound and grow. This only works if we don’t let our emotions highjack our brains and we stick to our time horizon. Our goal is not wealth; our goal is control over how we spend our time.
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Top reviews from the United States

  • Reviewed in the United States on September 5, 2024
    Morgan Housel’s The Psychology of Money is not your typical finance book. It's an insightful and profound exploration of how human behavior, rather than cold hard numbers, often determines financial success—or failure. If you’re looking for a book that teaches you how to manage wealth, understand greed, and find happiness, this is a timeless treasure trove of wisdom that transcends spreadsheets and stock markets.

    Lessons in Human Behavior, Not Just Finance

    Housel's genius lies in his ability to connect finance to human psychology, showing how our emotions, biases, and decision-making habits influence our financial outcomes. Unlike most personal finance books that focus on technical advice, this one delves deep into the mindset required to build and maintain wealth. Through engaging storytelling and real-life anecdotes, Housel illustrates that how we think about money is often more important than what we actually know about it.

    The Power of Compounding Behavior

    One of the book’s core messages is the immense power of compounding—not just in terms of investments but in life itself. Housel masterfully explains how small, consistent decisions can lead to huge gains over time, whether in wealth-building, relationships, or personal growth. He reminds us that patience and discipline are the cornerstones of financial success, and that short-term thinking is often the enemy of long-term wealth. His examples of how figures like Warren Buffet amassed fortunes through simple, disciplined investing make this concept strikingly clear.

    Greed: The Silent Wealth Killer

    Greed is one of the most destructive forces in personal finance, and Housel addresses it head-on. Through stories of financial bubbles, crashes, and personal downfalls, he shows how the relentless pursuit of "more" can derail even the most secure fortunes. His exploration of why it’s so hard for people to "have enough" is a sobering reminder that wealth is as much about mindset as it is about numbers. The book doesn’t just highlight the dangers of greed; it also offers practical ways to avoid falling into its trap by cultivating a sense of financial contentment.

    Happiness Beyond the Dollar Signs

    While the title suggests that money is the focus, happiness is the true heart of this book. Housel argues that wealth, when viewed properly, is a tool for freedom rather than a scorecard. His chapters on the importance of controlling your time, living below your means, and the intangible rewards of financial security are powerful reminders that happiness isn’t just about how much you earn, but how well you live. He masterfully weaves together the idea that wealth is not the end goal, but a means to achieve a life filled with joy, autonomy, and purpose.

    Timeless Lessons for Every Reader

    What sets The Psychology of Money apart is its universal appeal. Whether you're a seasoned investor, a financial novice, or someone simply seeking a healthier relationship with money, the book’s lessons are relevant and accessible. Housel’s conversational writing style makes complex concepts feel straightforward, and his ability to blend financial advice with psychology and philosophy makes this book a must-read for anyone wanting a holistic approach to money and life.

    Final Verdict: A Wealth of Wisdom

    Morgan Housel’s The Psychology of Money is a masterpiece of personal finance and self-awareness. Its lessons on wealth, greed, and happiness go far beyond dollars and cents, challenging readers to rethink their relationship with money and life itself. This book isn't just about getting rich—it’s about getting smart, getting wise, and getting happy. A timeless, essential read for anyone looking to master not just their money, but their mindset.
    67 people found this helpful
    Report
  • Reviewed in the United States on August 24, 2021
    Psycholology of Money: Timeless Lessons on Wealth, Greed and Happiness by Morgan Housel is a timeless work about how our feelings, emotions and interactions with money often results in different outcomes for different people – because people are different. So, insights into how to think and behave about money is instructive.

    You may think you don’t have enough money to make a difference for your future. I think this book will show you, how even with those thoughts, that you can.

    Others may believe they have more than enough. Those too are risky thoughts and beliefs.

    Because people are different, everyone should read this book to see what you uniquely learn about yourself and how you should think about money.

    Chocked full of great insights to guide us all.

    Quotes that hit home from various chapters are presented below. There are many more quotes possible, but then you’d miss the message between each quote. I strongly suggest getting the book to see how these below snippets string together into a powerful story about how we think and behave towards money matters.

    Quote:
    • Your personal experiences with money make up maybe 0.00000001% of what’s happened in the world, but maybe 80% of how you think the world works.
    • Luck and risk are siblings.
    • Yes, but I have something he will never have … enough.
    • There is no reason to risk what you have and need for what you don’t have and don’t need.
    • The hardest financial skill is getting the goalpost to stop moving.
    • $81.5 billion of Warren Buffett’s $84.5 billion net worth came after his 65th birthday.
    • Buffett began serious investing when he was 10 years old.
    • His skill is investing, but his secret is time. That’s how compounding works.
    • But good investing isn’t necessarily about earning the highest returns, because the highest returns tend to be one-off hits that can’t be repeated. It’s about earning pretty good returns that you can stick with and which can be repeated for the longest period of time. That’s when compounding runs wild.
    • Getting wealthy vs. staying wealthy.
    • Getting money is one thing. Keeping it is another.
    • Planning is important, but the most important part of every plan is to plan on the plan not going according to plan.
    • No one is impressed with your possessions as much as you are.
    • When you see someone driving a nice car, you rarely think, “Wow, the guy driving that car is cool.” Instead, you think, “Wow, if I had that car people would think I’m cool.”
    • Humility, kindness, and empathy will bring you more respect than horsepower ever will.
    • Spending money to show people how much money you have is the fastest way to have less money.
    • Money has many ironies. Here’s an important one: Wealth is what you don’t see.
    • Past a certain level of income people fall into three groups: Those who save, those who don’t think they can save, and those who don’t think they need to save.
    • Building wealth has little to do with your income or investment returns, and lots to do with your savings rate.
    • The value of wealth is relative to what you need.
    • Past a certain level of income, what you need is just what sits below your ego.
    • People’s ability to save is more in their control than they might think.
    • Things that have never happened before happen all the time.
    • The thing that makes tail events easy to underappreciate is how easy it is to underestimate how things compound. How, for example, 9/11 prompted the Federal Reserve to cut interest rates, which helped drive the housing bubble, which led to the financial crisis, which led to a poor jobs market, which led to tens of millions to seek a college education, which led to [over a trillion dollars] in student loans with [a high percentage of default rates].
    • The correct lesson to learn from surprises is that the world is surprising.
    • The most important part of every plan is planning on your plan not going according to plan.
    • The purpose of the margin of safety is to render the forecast unnecessary.
    • The End of History Illusion is what psychologists call the tendency for people to be keenly aware of how much they’ve changed in the past, but to underestimate how much their personalities, desires and goals are likely to change in the future. [Thus, their history of change won’t change anymore into their future].
    • Every job looks easy when you’re not the one doing it.
    • Successful investing looks easy when you’re not the one doing it. Hold stocks for the long run … but do you know how hard it is to maintain a long-term outlook when stocks are collapsing?
    • Price … not dollars and cents … it’s volatility, fear, doubt, uncertainty … all of which are easy to overlook until you’re dealing with them in real time.
    • Beware of taking financial cues from people playing a different game than you are.
    • When investors have different goals and time horizons – and they do in every asset class – prices that look ridiculous to one person can make sense to another, because the factors those investors pay attention to are different.
    • The interesting thing about [absolutely pessimistic] stories is that their polar opposite – forecasts of outrageous optimism – are rarely taken as seriously as prophets of doom.
    • Pessimism just sounds smarter and more plausible than optimism.
    • …progress happens too slowly to notice, but setbacks happen too quickly to ignore.
    • The more you want something to be true, the more likely you are to believe a story that overestimates the odds of it being true.
    • We don’t know what we don’t know.
    • Coming to terms with how much you don’t know means coming to terms with how much of what happens in the world is out of your control. And that can be hard to accept.
    • Less ego, more wealth.
    • If you want to to do better as an investor, the single most powerful thing you can do is increase your time horizon.
    Unquote.

    There’s a lot of wisdom alone in the various quotes above. There’s even more wisdom reading how they string together to see the larger story line to understand your psychology of money applied in your own life.

    Each person reading Housel’s work will get something different out of it than someone else. And each time you read it (I suggest more than once) you too will get yet still something else out of it.
    487 people found this helpful
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  • Cliente de Amazon
    5.0 out of 5 stars Excelente libro
    Reviewed in Mexico on January 11, 2025
    Definitivamente primero libertad financiera y luego riqueza

    Constancia y paciencia es la clave

    Es mejor un mal plan que no plan cuando se trata de invertir
  • Ariel W
    5.0 out of 5 stars The Psychology of Money: Timeless Lessons on Wealth, Greed, and Happiness 🧠💰
    Reviewed in Canada on July 11, 2024
    "The Psychology of Money" by Morgan Housel is a thought-provoking and insightful book that explores the psychological factors that influence our relationship with money and how they impact our financial decisions. It's not a traditional finance book filled with technical jargon and investment strategies, but rather a philosophical exploration of the human element in money management.

    Key Themes and Principles:

    The Importance of Behavior: Housel emphasizes that our financial success is largely determined by our behavior, not just our investment strategies. He argues that understanding our own psychology and biases is crucial for making sound financial decisions.

    The Power of Time and Patience: The book stresses the importance of time and patience in investing. Housel advocates for a long-term perspective and avoiding impulsive decisions driven by fear or greed.

    The Role of Luck and Chance: Housel acknowledges the role of luck and chance in financial success. He cautions against attributing all success to skill and warns against the dangers of overconfidence.

    The Importance of Simplicity and Humility: The book emphasizes the value of simplicity and humility in managing money. Housel argues that complex strategies and excessive risk-taking often lead to poor outcomes.

    The Pursuit of Happiness: Housel explores the relationship between money and happiness. He suggests that true financial well-being is not just about accumulating wealth but also about achieving financial independence and security.

    Practical Applications:

    Understanding Behavioral Biases: Housel provides insights into common behavioral biases that can lead to poor financial decisions, such as loss aversion, confirmation bias, and herd mentality.

    Developing a Long-Term Perspective: The book encourages readers to adopt a long-term perspective on investing and avoid chasing short-term gains.

    Embracing Simplicity and Humility: Housel advocates for a simple and disciplined approach to managing money, avoiding unnecessary complexity and risk.

    Overall:

    "The Psychology of Money" is a refreshing and insightful book that offers a unique perspective on the relationship between money and human behavior. It's a valuable read for anyone looking to develop a more mindful and effective approach to managing their finances. Housel's engaging writing style and real-world examples make the book both informative and entertaining.
  • Midhun das
    5.0 out of 5 stars Excellent delivery and product quality
    Reviewed in South Africa on January 9, 2025
    The book I received like a jewel item they packed very well and I will continue buy more from Ubuntu books
  • Marco Quattrocolo
    5.0 out of 5 stars Un capolavoro della finanza personale
    Reviewed in Italy on December 28, 2024
    Le massime finanziarie contenute in questo libro dovrebbero essere insegnate a scuola. Lo consiglierei a tutti
  • Velislava Teneva
    5.0 out of 5 stars Fast delivery
    Reviewed in Belgium on December 21, 2024
    Excellent for a gift