Money Psychology 1: No one’s crazy
People do some crazy things with money. But no one’s crazy.
Everyone has their own unique experience with how the world works.
They tell themselves a story about what they’re doing and why they're doing it. And that story has been shaped by their own unique experiences.
The person who grew up in poverty thinks about risk and reward in ways the child of a wealthy banker can’t imagine. You go through life with different beliefs, goals and forecasts than I do.
Local stock markets in Germany and Japan were wiped out during World War II. But in the US, the stock market more than doubled. The person who grew up when inflation was high, will have a different mindset than the one who lived with stable prices.
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.
[The Psychology of Money: Lesson 1 of 18]
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