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How To Get Rich The Smart Way: Gen Z's Guide To Lessons From ‘The Psychology Of Money'
How To Get Rich The Smart Way: Gen Z's Guide To Lessons From ‘The Psychology Of Money'

India.com

time6 days ago

  • Business
  • India.com

How To Get Rich The Smart Way: Gen Z's Guide To Lessons From ‘The Psychology Of Money'

photoDetails english 2931180 The book focuses on the key insights on wealth-building through behavior, not just knowledge. From the importance of preserving wealth and avoiding lifestyle inflation to embracing patience, humility, and compounding, the story highlights lessons Gen Z can apply early in life. Instead of chasing quick riches, Housel encourages a long-term mindset grounded in self-awareness, discipline, and emotional control. Scroll down to read more. Updated:Jul 13, 2025, 03:03 PM IST About the Book 1 / 7 Written by Morgan Housel and published in 2020, The Psychology of Money is an amazing book that explores the thing which is often overlooked, the emotional and psychological side of personal finance. Rather than focusing on complex formulas or investment strategies and he talks about our mindset and it's importantance in handling our money. (This article is meant for informational purposes only and must not be considered a substitute for advice provided by qualified professionals.) Earning Wealth Is One Thing, Preserving It Is Another 2 / 7 Many people focus on how to make money, through hard work, ambition, or risk-taking. But the author argues that staying wealthy is a whole different thing. It requires qualities like humility, patience, and fear of loss. It's great to be bold while building wealth whether it's investing or starting businesses, but knowing when to stop and protect what you've earned is what will help you in the long run. Don't Let Your Spending Grow with Your Income 3 / 7 Saving money has little to do with income and everything to do with behavior. The more people earn, the more they tend to spend, often on things that don't bring lasting happiness, so the author says you don't have to increase your lifestyle every time your income increases. Money Means Different Things to Different People 4 / 7 One of the book's strongest messages is that there is no single "correct" way to use money. People behave the way they do because of their individual backgrounds, experiences, and beliefs. What feels smart to one person might feel risky or unnecessary to another. Everyone has their own situations and no one is crazy to react in a certain way. Luck and Risk 5 / 7 Housel says that financial outcomes are not always the result of skill or bad judgment, luck and risk play a huge role. Some people succeed because of good timing; others fail despite making good decisions. Recognizing this makes you more empathetic, humble, and careful. Let Time Turn Small Gains into Big Results 6 / 7 Housel calls compounding one of the most powerful financial forces, not just for investing, but in life. The trick is not chasing big wins, but allowing small gains to grow over long periods of time. Patience, not genius, builds wealth. Even small investments now can grow exponentially over decades. Conclusion 7 / 7 The book reminds us that building wealth isn't just about earning more, it's about thinking differently. By focusing on behavior, patience, and a long term mindset over quick wins or flashy spending, anyone can build lasting financial stability. In a world full of noise, Housel's advice is simple but powerful. He says that learn to master your emotions, respect time, and let your money habits reflect your values.

Being rich and being wealthy are not the same thing. What's the difference?
Being rich and being wealthy are not the same thing. What's the difference?

USA Today

time12-06-2025

  • Business
  • USA Today

Being rich and being wealthy are not the same thing. What's the difference?

Being rich and being wealthy are not the same thing. What's the difference? Show Caption Hide Caption The wealth gap: $400 billion versus the median American net worth The world's richest person had a net worth of $400 billion. This is the visual comparison of the U.S. wealth gap. One of the unique aspects of my job as a family and consumer sciences educator is the coaching I'm able to conduct with individuals about personal finance and consumer behavior. My conversations rarely begin with the components of a good budget. Instead, we focus on the relationship with money, including attitudes and habits. I'm always looking for more resources about why people do what they do with money that will help me in my coaching conversations. And, admittedly, in my own quest to be wise with my finances. I recently read The Psychology of Money (subtitle — Timeless lessons on wealth, greed and happiness) by Morgan Housel. Housel was a columnist for The Wall Street Journal. I found myself nodding my head in agreement with so many of the themes of the short, yet thought-provoking chapters. Here are some of my key takeaways from the book. Wealth is what you don't see One of my favorite lines in the book is 'When most people say they want to be a millionaire, what they might actually mean is 'I'd like to spend a million dollars.' And that is literally the opposite of being a millionaire.' Wealth is financial assets that haven't been converted into stuff we can see. It is the cars, jewelry, clothes, you name the item, not purchased. There is a difference between being rich and being wealthy. Rich has to do with current income. Wealth is income not spent. I have long appreciated the research by Barbara O'Neil at Rutgers University about the connections between health and wealth. Americans often overestimate the number of calories burned in a workout and underestimate the number of calories consumed in a meal. In case you missed it: Millennials and Gen X want to share wealth now. Boomers will wait until they're dead. Several years ago, a colleague pestered my husband about his Mountain Dew habit. One day, David realized it takes about 20 minutes of running to burn off the calories in just one can of pop. It just wasn't worth it anymore, so he completely quit drinking soda. The same pattern is true with wealth. Many people overestimate their income and underestimate how much they are spending. We are quickly losing the last generation that had the general mindset of saving money. Because we often do not witness the restraint and self-control of not spending money, we are raising generations that associate having money with spending that money. Controlling your time is the highest dividend money pays In 2019, a poll of more than 150,000 people across 140 countries revealed that Americans felt more worry and more stress than people in other places. We are the richest nation in the world. In the history of the world. But nothing indicates we are happier as a result. Research suggests having control over our time — to do what we want, when we want, with the people we want — is the lifestyle variable that makes people the happiest. Ironically, in this era of constant communication and connection, we tend to feel less in control of our time than ever before. And thus, less happy. Gerontologist Karl Pillemer interviewed 1,000 elderly Americans for life lessons and advice. They did not suggest working as hard as possible to buy the things you want or to try to be as wealthy as the people around you, or to choose work based on future earning power. Not even close. They valued spending quality, unstructured time with friends and family and being part of something bigger than themselves. How are you doing in your relationship with money these days? Today, I'll leave you with this quote from Warren Buffett: 'Someone is sitting in the shade today because someone planted a tree a long time ago.' Emily Marrison is an OSU Extension Family & Consumer Sciences Educator and may be reached at 740-622-2265 or marrison.12@

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