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‘The Psychology of Money – Timeless Lessons on Wealth, Greed, and Happiness’ by award-winning author Morgan Housel is one of the best books on personal finance. Neat and crisply written – this book offers a lot of wisdom and high-quality content. In this book, Morgan Housel shares 19 stories exploring the strange ways people think about money. It covers observations on our relationship with money and tells us how our thinking towards finances drives the critical decisions of our life. The premise of this book is that – doing well with money has a little to do with how smart you are and a lot to do with how you behave. It inspires you to live a wealthy life by making smart decisions. Key Take-Aways from the Book‘The Psychology of Money’ is filled with interesting ideas and practical takeaways. A few are listed below.Both luck and risk are hard to measureSocial comparison is a problem. Comparison is the thief of all joy. Remember – there's always a bigger fish.”Give yourself a chance to win and take advantage of long tailsCompounding only works if you give it the time to growHaving the ability to do what you want, when you want, is the ultimate form of wealthDon’t be tempted by those who flaunt wealth. Someone can seem rich, but it’s impossible to know at a glance.Reduce your ego. Wait for the best opportunities. These can only happen if you save.Be reasonable rather than rational. Reasonable is more realistic.Investing is not hard scienceEvery investment won’t be a winner. Learn to plan accordingly.Deal with market volatility. Accept and embrace it.Run your own race.