Lessons from 'The Psychology Of money'

Hello, I recently completed a book called ' The Psychology of Money'  today in this blog, I am going to share an important lesson that is helpful, in this 21st century. 

I think If I had not gotten that book, I would have wasted too much money. 

Let Us Begin,

 So, I will talk about the lesson which is in chapter 8 ' Man in the Car paradox.

Here author Morgan Housel explains how we waste our wealth or money to show off which directly affects our wealth. 

Let me understand from an example that is given in this book but in my own words.

Many people waste their money to show their richnesEx ex You need a car not a very expensive average car, but you see the expensive car of your relative or another, and that changes your mind About the Need To Show off. 

Then you buy a very luxurious car, and you have money that you have build on your hard work, intelligence, etc.  Now you have a beautiful expensive car, which you had buy by thinking that it would create respect for you.

But, things happen opposite of it. When you show your car to others they will say, Wow what a car it is! Then will not say how hard worker you are that you can buy this car. 

So, why you are wasting money on these people who will look at your car not your success. This is what you have to understand. Many once buy expensive Watches, Shoes, and many more, to show your wealth, which will be the reason for reducing your wealth. 

This is what the author wants t conclude about not wasting your money on others. 

I recommend You to read this book. And you will get more lessons.

 

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