Recap: The Psychology of Money

One of the books I'm reading right now (yes, I'm reading 2 books at once 👀) is The Psychology of Money by Morgan Housel. I absolutely love it so far because it's detailing the lives and behaviours of well-known investors of the past. As you may know, I got started my financial journey in November 2019 and invested for the first time in November 2020. I'm super into finance and business books and content so this is right up my alley. There's also such good insight and awareness in the book so I'm going to share my favourite parts:


No One's Crazy:

I always tell people that despite someone's actions, I try to extend grace because I'm good at empathizing with why they might be doing said action. Example: some people from marginalized communities splurge every time they get a pay check. The general lack of financial guidance and the intensity of the scarcity mindset means that they're simply acting based on what they know. Even if they learned a few financial concepts, change doesn't happen overnight and especially not without implementation and consistency. People act in a way that makes sense FOR THEM. Let's not assume that everyone knows what we know or has access to what we have access to and let's understand that people also act differently depending on the circumstances.

Never Enough:

This chapter really opened my eyes about setting personal goals and boundaries. We hear stories all the time about people who risked it all and lost everything because of greed. If we set financial goals for what we want to achieve (hopefully rooted in realism and humanity), we're more aware of what happens next when we actually achieve them. If my goal is to buy a home and I have a plan on how to get there, anything that may interrupt the success of that goal or threaten my well-being isn't apart of the plan. But this is where logic and morals come in. What if an opportunity comes up that will speed up the process to that goal? What if someone can help me get there faster but for more money (or less money). What if it involves something sketchy or illegal? We have to know when enough is enough. If you will do ANYTHING to get rich, you'll do anything to not go broke and that's where it can get messy. 

Establish values and non-negotiable morals and commit to them. Remember, money is simply a tool that needs to be directed. Don't let it control you or change you and don't let it warp your emotions.

Getting Wealthy vs Staying Wealthy:

A great example of why preserving wealth is key is all of those rappers who owed millions in taxes because they weren't filing them (check out their stories here: Once-Ballin' Rappers Who Went Broke). Listen, it doesn't make sense to build up all this wealth for it to be taken away because of incompetence or not passed down to your family because of a lack of key financial products. The goal in MY life isn't to make money to spend it. I make money to invest it so it can make more money to create the lifestyle I want later on. 

Some ways you can preserve your wealth:

  • Life Insurance and a Will - build wealth using your policy through your investments/cash value and pass it down to the right people
  • Invest your money so it continues to grow instead of spending it or letting it lose its buying power
  • Invest in property and let your kids have it to generate passive income
  • Start a business so you can turn your money into impact
Let me know what books you're currently reading! Remember, knowledge is power. We are so fortunate to have access to a variety of resources; make sure you utilize them!

All love, always, Shay.💛

Instagram: @financefortheculture

Email: financesfortheculture@gmail.com

Book an appointment: https://calendly.com/financefortheculture


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