(from Morgan Housel)
Morgan Housel is one of my favorite personal finance writers and bloggers. In addition to finances and investing, he is an expert in psychology, well-being, and the author of ‘The Psychology of Money.’ He wrote a letter to his son before his birth, in which he provided the following list of valuable financial and life advice:
- Expensive possessions do not necessarily command respect and admiration from others. Traits like humility and respect for others hold greater value.
- Financial success and failure are not solely determined by hard work. Luck and circumstances also play significant roles, so it’s important to exercise mindfulness when judging others.
- Experiencing scarcity and learning to live with less can impart the true value of money and essential survival skills.
- Avoid the cycle of continuously shifting the goalpost for financial happiness. The ability to adapt to new circumstances outweighs the pursuit of a specific monetary target.
- Do not feel trapped in a career you dislike due to a decision made at a young age. It is common not to discover your true calling until later in life.
- Remain open to changing your beliefs and opinions, particularly in the realm of investing. The capacity to adjust and acknowledge when one is wrong reflects intelligence.
- The greatest advantage of money is the control it grants over one’s time and priorities. This freedom contributes to genuine happiness.
- Debt is a significant cause of financial regret. Borrowing for short-term pleasure can restrict future options and burden you in the long run.
- Your savings rate depends more on your spending habits than your income. Learning to live with less is an effective approach to gaining control of your financial future.
- Recognise that everyone is different, and it is essential to form one’s own opinions and experiences. So don’t listen blindly to your parents about the above money advices.
For other topics on wellbeing, you can find it here https://nickandmoney.com/category/wellbeing/
Follow me on Twitter: https://twitter.com/nickandmoney
nick and money – improve your finances and wellbeing