Book Review!

Morgan Housel’s “The Psychology of Money” was pretty great.

This book isn’t about dry formulas or intimidating graphs, it is about how real people actually think and behave with money. And spoiler alert: it’s not always logical, but it’s definitely relatable.

One of the biggest takeaways for me was the idea that behavior trumps intelligence when it comes to building wealth. Like, you can have a PhD in econ and still overspend on things that don’t add value to your life. Housel makes it super clear that success with money isn’t about being the smartest in the room, it is about patience, self-control, and long-term thinking. As someone who’s trying to budget on a student income while dreaming of financial independence, this hit hard. It’s not about picking the perfect stock—it’s about consistently saving, avoiding debt traps, and understanding your relationship with risk.

The chapter “Getting Wealthy vs. Staying Wealthy” is crucial to personal finance. Getting rich might involve taking risks or being in the right place at the right time, but staying rich? That’s about humility, frugality, and a healthy respect for uncertainty. It made me realize that long-term wealth is a mindset. And yes, that mindset includes the occasional Friday night in instead of Uber Eats for the third time that week. Growth!

Another real-world gem was the concept of reasonable over rational decisions. Technically, the most rational thing might be to invest 100% of your savings in high-risk stocks to maximize returns, but would you sleep at night? Probably not. Housel argues that money decisions should make sense for you, not just for some theoretical model. That felt so validating. It’s okay to be conservative if it helps you feel secure. It’s okay to pay off a low-interest loan early just for peace of mind. Personal finance is personal. Period.

And don’t even get me started on his discussion of luck and timing. Participating in a competitive job market, it is relieving to acknowledge how much success is outside our control. But instead of feeling helpless, Housel encourages readers to focus on what is in our control: saving consistently, avoiding lifestyle inflation, and keeping our financial goals rooted in reality.

In short, The Psychology of Money isn’t about how to get rich overnight. It’s about understanding the messy, emotional, and deeply human side of money. It gave me tools I can use now, like saving a little from each paycheck and being mindful of my spending habits, and it’s reshaped how I think about wealth in the long run.

If you’re ready to rethink your financial mindset, gain insight, and maybe even kickstart your own financial glow up, this book is your next must-read. Your future self (and your bank account) will thank you. 💸