The Psychology Of Money

I recently purchased a book called The Psychology of Money.  Not just one book, but dozens of them, which I gave to clients.

It isn't the best finance book I've read, nor is it close to being the best behavioral book I've read.  But it is one of the better behavioral finance books I've read.

I'd summarize it this way -- The Psychology of Money explores the different ways people think about money, and how personal experiences with family, friends, and neighbors will often influence their financial behavior – for better or worse.

Put differently, if a person is around others who are (un)disciplined with money, they're more likely to be the same way.  That may not be a revelation, but it should also make one think about how the same philosophy can be applied to other things.

If you're consistently around people of a certain political view, you're more likely to share it.  Same for religion.  Same for social issues.

This makes it pretty simple to understand the formations of group-thinking a/k/a cultish behavior.  The lack of exposure to other views leave one to believe there are no alternatives.

I'm old enough to remember when the internet was supposed to solve all of this.  It made the world smaller and accessible, so presumably humans (with internet access) would be able to see humanity in a broader context.

Unfortunately, that idea has come crashing down under the weight of unregulated social media apps.  Now people just follow other people online who think the same way.  And let's face it, some of this people are ignorant and malevolent, increasing the likelihood their followers will be that or worse.

Which brings me back to the broader lesson of The Psychology of Money.  You learn what you live, which may or may not be a good thing.