The Psychology of Money

by: Morgan Housel

May 18, 2025

Polish only

non-fiction
finance

Investing has become an important issue for me in recent years. After some time, I noticed that, in addition to numbers, charts or observing market fluctuations, psychology is more important in the investment process. Controlling your own emotions and approach to money is key not so much to achieving success but to maintaining a healthy approach to your own finances.

The author presented his observations in the form of 20 short chapters, which makes the book very easy to consume. The downside is focusing solely on the American perspective. For me, as a resident of an EU country (Poland), I cannot relate all of the theses mentioned to the economic situation in my region. On the other hand, the American market is so large that I am not surprised by the limitation of the perspective that Housel made in his book.

“The Psychology of Money” is also not revolutionary. There is no miraculous advice here, technical information from the stock exchange or strategies that will be suitable for everyone. However, there are simple theses presented here packed in a certain economic context. For example, the author made me realize or rather reminded me that such elements as retirement, bank transfers or the stock exchange are relatively new “inventions”. We live in an age of experimentation and financial reality can change a lot in a decade.

This is a very valuable book and we can use the author’s lessons to improve our financial habits. This is another book I will return to more than once.