Psychology of Money by Morgan Housel

If ever there was a book about money that I wish I had written, it might just be The Psychology of Money by Morgan Housel. This is a really great read for anyone interested in making money work for them – which is you!

Morgan writes 20 short chapters, which are all very readable and should (I hope) provide interest to even those with the most chest-tightening of financial jargon phobias. The key messages reinforce what I have come to witness and understand over the last three decades – investor behaviour is probably the most important element of a successful investment experience. You don’t need a Degree or to have particularly good maths skills; but rather a long-term mindset and a clear plan that you stick to. You also need to accept market volatility as the price you pay for good returns. Sound familiar?

How you behave is more important than what you know.

As you will know, we work with you to create your financial plan. The better we know you, the more chance we have of clearly identifying your values and ‘goals’ (I’m not keen on that word, but it does capture most of what I am trying to convey).  I believe that crafting your financial plan helps clarify how much is enough for you. Most people have no idea about how much is enough, and as a result ‘more is always better’ but this is one of the best ways to remain permanently dissatisfied.

What is ‘enough’ for you is not the same for someone else.  Even within our rather wonderful group of clients there is a fairly wide and varied definition of how much constitutes enough. That is normal; difference is normal.  Hence your plan is unique and designed for you. It is not designed for your friends, extended family or peers who may have very different resources and assumptions about what is enough.  Morgan tackles some of these issues and shares some useful examples.

So, if you would like a free copy, I have one with your name on it. Send an email to Jemima (jemima@solomonsifa.co.uk) and she will ensure you get a copy.