You're not a reasonable person, you might be rational. But is the market rational? Not even close. So, does it pay to be reasonable or rational? Housel says it's the former - be reasonable my friend. That'll help you more than anything in these volatile markets. Investing is more to do with psychology even if finances is purely mathematical. When stuff hits the fan, you won't be rational, looking at spreadsheets and charts. You'll be worried about your future and blame your past. This is a podcast on how to deal with finance reasonably even if it's not rational.
If there's any way I can improve, let me know.
Buy the book here: https://amzn.to/3ERgi6j (Affiliate link)
Check out my Twitter: https://twitter.com/Aakash_Tries
---
Aakash
#books
#investing #personalfinance
Rule number one of any book on money is: SAVE. Saving money is more important that people give it credit. More than earning more or investing. The importance of the bridge between Income and Investment is Saving. Here's what we cover:
1. Building wealth has more to do with your savings
2. The value of wealth is relative to what you need
3. Past a certain level of income, what you need is just what sits below your ego
4. People's ability to save is more in their control than they think
5. You don't need a specific reason to save
6. Unseen return on wealth: The flexibility and control over your time
7. Hidden returns are more important
If there's any way I can improve, let me know.
Buy the book here: https://amzn.to/3ERgi6j (Affiliate link)
Check out my Twitter: https://twitter.com/Aakash_Tries
---
Aakash
#books
#investing #personalfinance
What's the difference between being wealthy and rich? Being wealthy is hidden and dynamic, being rich is out in the open and static. If you bought a car for $100,000, you're richer by $100,000, but you're less wealthy by $100,000. That's the lesson in this chapter of Morgan Housel's book. We only see richness, we never see wealth. But if you look deep enough you see the sacrifices that led to riches, those sacrifices are true wealthy.
If there's any way I can improve, let me know.
Buy the book here: https://amzn.to/3ERgi6j (Affiliate link)
Check out my Twitter: https://twitter.com/Aakash_Tries
---
Aakash
#books
#investing #personalfinance
Be honest. You looked at the guy in the fancy car, or the couple in the big home and thought, "I wish I had that." I do this all the time. But when I do, I rarely look at the people, I only look at the things. That's the lesson from the chapter "The Man In The Car Paradox." We always look at what money can buy, the cars, the watch, the phone, the house. Do we really want this? Housel suggests we really want two things through money, but which money can't buy, respect and humility.
If there's any way I can improve, let me know.
Buy the book here: https://amzn.to/3ERgi6j (Affiliate link)
Check out my Twitter: https://twitter.com/Aakash_Tries
---
Aakash
#books
#investing #personalfinance
The goal of money is control. The absence of money is a lack of control. Morgan Housel, in this chapter, boils the question of having wealth to Freedom. We all want more time with our loved ones, doing what we love, and having money is the way to achieve it. Whether it's having an emergency fund to not take on work immediately, or a retirement fund to not work till your incapable. That's what we all chase with money and this chapter is why we should optimize for control rather than just money.
If there's any way I can improve, let me know.
Buy the book here: https://amzn.to/3ERgi6j (Affiliate link)
Check out my Twitter: https://twitter.com/Aakash_Tries
---
Aakash
#books
#investing #personalfinance
Tail events, the farthest ends of a distribution of outcome, drives everything. This is true in finance and in life. Think of anything or anyone who's achieved success. What we see is the glitz and glamour of Amazon, Disney, Netflix, or your favourite comedian or investor. What we don't see is the hours of work that went into achieving those outcomes. Housel teaches us the importance of not just looking for tail events, but knowing that tail events drive everything.
If there's any way I can improve, let me know.
Buy the book here: https://amzn.to/3ERgi6j (Affiliate link)
Check out my Twitter: https://twitter.com/Aakash_Tries
---
Aakash
#books
#investing #personalfinance
Making money is a great skill. But you know what's greater? Keeping and growing the money you've made. This is a difficult game, and many, including people like Warren Buffett have made mistakes keeping money. That's what Morgan Housel teaches us in this chapter, "Getting Wealthy versus Staying Wealthy." The difference is plenty as we'll see in the case of Jesse Livermore, Abraham Germansky, and Rick Guerin.
Key principles from this lesson:
- Avoid wipeouts
- Always keep a margin of error
- Short term paranoia and long term optimism
Link to buy the book: https://amzn.to/3zIDSik
If there's any way I can improve, let me know.
---
Aakash
#books
#investing #personalfinance
Did you know that you can get a lot from something small? This isn't a pitch for a scam. It's actually the principle of compounding. Confounding, right? That's the title of the fourth chapter of The Psychology of Money - "Confounding Compounding." And in it Morgan Housel explains the fundamental principle of Warren Buffet's rise to success - compounding of time and money. It's really that simple and that difficult to start early, never stop and stay consistent.
Link to buy the book: https://amzn.to/3zIDSik
If there's any way I can improve, let me know.
---
Aakash
#books
#investing #personalfinance
What’s that point for you where earning money ceases to bring happiness? Is it a number, a milestone, a type of car, house, or watch? Everybody has an idea what their “enough” is but we rarely stick by them. In this chapter, Housel gives us four reasons why we would have a sense of “enough” and three tales of people who went beyond their “enough.”
Link to buy the book: https://amzn.to/3zIDSik
If there's any way I can improve, let me know.
---
Aakash
#books
#investing #personalfinance
Luck and risk are siblings. That's how Housel begins this chapter. One can take you to success and the other away from it. But the importance of luck and risk is overlooked. In this chapter, Housel takes us through luck and risk with Bill Gates and another potential co-founder of Microsoft, Benjamin Graham, and other successful people. We often look at the top or the bottom, the ones on the right and wrong side of risk. We often ignore everyone else. Hopefully, this chapter will help us think otherwise.
As Scott Galloway said, "Nothing is as good or as bad as it seems."
Link to buy the book: https://amzn.to/3zIDSik
If there's any way I can improve, let me know.
---
Aakash
#books
#investing #personalfinance
You're different. I'm different. We're all different. And we all look at money differently. If we've lived in different countries, in different times and markets and been through different highs and lows, we have a different perspective. This changes our relationship with money. As Housel puts it, what we've been through is 0.00000001% of what's happened in the world but 80% of how you think the world works. The question is - how does this affect your money?
Link to buy the book: https://amzn.to/3zIDSik
If there's any way I can improve, let me know.
---
Aakash
#books
#investing #personalfinance
"The Psychology Of Money" is a fantastic book on how to think about finance. Not how to use finance, but think about finance. The sub title of the book reads, "Timeless Lessons on Wealth, Greed, and Happiness." Finance, as author Morgan Housel, puts it needs to be understood through psychology and history, rather than math.
In this podcast, I will break down this book as best I can for the perspective of a young person. We've been taught finance through our parents, in a good, but outdated and mechanical way. This books talks about it in as a thought you should have for the rest of your life, and I hope to do the same.
Check out the blog on which the book is based: https://www.collaborativefund.com/blog/the-psychology-of-money/
Link to buy the book: https://amzn.to/3zIDSik
If there's any way I can improve, let me know.
---
Aakash
#books
#investing #personalfinance
This is the final episode from the book "Think and Grow Rich" by Napolean Hill. In this epsiode, we summarize the entire book as Hill laid out, and go through the most memorable chapters.
It still surprises me that this book was written in 1937. By no means, is this book outdated. In fact, it's a timeless gem. No wonder it's still on bookshelves all over the world. And there's a key reason for it.
It still surprises me that this book building wealth. Every chapter is an step in the process of building and sustaining wealth. These are the chapters and a one line summar of them:
- Desire: Structure what you want
- Faith: Turning desire from conscious to sub-conscious
- Auto-suggestion: Impulse through the five senses
- Specialized Knowledge: Knowledge of skill and application
- Imagination: Spark of creativity
- Organized Planning: Turning desire into reality
- Decision: The opposite of procrastination
- Persistence: The power of will
- Power of the Master Mind: The application of power
- The Mystery of Sex Transmutation: The ability of control
- The Subconsious Mind: The connecting link to creative imagination
- The Brain: The place where thought "steps up"
- The Sixth Sense: The door to Creative Imagination
- The Six Ghosts of Fear: What's stopping you from success
The next book I'll be covering is - "The Psychology of Money" by Morgan Housel. Stay tuned.
Thank you for listening.
Link to the book:
https://amzn.to/2T1w1xb
---
Aakash
#books
#investing #personalfinance
This is the penultimate episode from the book "Think and Grow Rich" by Napolean Hill. In this epsiode, we go through control of one's mind, and how discipline is the key to everything. Whether it's greatness in business, family, or sports, discipline is essential. Hill tells us to hone our skills, work on them, but be disciplined throughout.
In the chapter, he also lists down 57 alibis we tell Old Man If. In addition to indecision, procastination, and fear are our mortal enemies. Here are few of the common alibis we tell ourself to give us a break:
- If I had time
- If I was richer
- If I was younger
- If I weren't so busy
- If I had a bit of luck
- If I had more freedom
- If people weren't dumb
These are alibis we all have, I certainly do. But we need to fight them. That's what discipline teaches us. That's what Hill has taught us through this book. Let's try to be discipline in just one thing that will improve us.
Thank you for listening.
Link to the book:
https://amzn.to/2T1w1xb
---
Aakash
#books
#investing #personalfinance
I try to read the fifteenth chapter of Think And Grow Rich by Napoleon Hill. This chapter is titled “How to Outwit the Six Ghosts of Fear." In this episode we cover the main reason for the six ghosts of fear - Worry.
Hill says the basis for worry is indecision. It zaps confidence and shrounds you in over thinking leading to worry. There is only one cure to indecision, and that is prompt and firm decision making.
Worry and worrisome not only delays and weakens judgement, but it comes off as weak and insecure. This is a form of mental telepathy which others receive as well. When you're worried, people sense it. Friends help you through it, and enemies take advantage of it. Either way, worry makes you vulnerable. Avoid it.
Hill also details a concept which is not a fear, but more dangerous than any of the six fears. He describes this as the Devil's workshop, or negative influences. If you allow yourself to be swayed by these negative influences, you will float around until negativity takes you. Instead, find out a prevention for it, for there is no natural immunity. Everyone is swayed, but not everyone allows this to take over them. Be that person!
Link to the self analysis questions:
http://davidjohnkaye.com/wp-content/uploads/2018/11/Self-Analysis-Questions-from-Think-and-Grow-Rich-by-Napoleon-Hill.pdf
Link to the book:
https://amzn.to/2T1w1xb
---
Aakash
#books
#investing #personalfinance
I try to read the fifteenth chapter of Think And Grow Rich by Napoleon Hill. This chapter is titled “How to Outwit the Six Ghosts of Fear." In this episode we cover the fifth and the sixth fears - The Fear of Old Age and The Fear of Death.
The Fear of Old Age is a terrible fear which comes out of inactivity. When we get old, we get inactive, our contribution to family and society falls. This decreases a drive within us to achieve something. We become scared of poverty, begin feeling sorry for ourselves and try to change ourselves wholesale. These are just manifestations of the symptoms of the fear of poverty, which include:
1. An Inferiority Complex
2. Speaking apologetically about oneself
3. Killing off initiative
4. Changing our appearance
In contract, the fear of death is less active and more languid. It develops out of a fear of what comes next. Religious conmen and woman try to instill fear in us by making us perform rituals to ward off this fear. But it must be imbibed or forgotten through activity. Hill says,
"This fear (The Fear of Death) is useless. Death will come, no matter what anyone may think about it. Accept it as a necessity, and pass the thought out of your mind. It must be a, necessity, or it would not come to all. Perhaps it is not as bad as it has been pictured."
Link to the book:
https://amzn.to/2T1w1xb
---
Aakash
#books
#investing #personalfinance
I try to read the fifteenth chapter of Think And Grow Rich by Napoleon Hill. This chapter is titled “How to Outwit the Six Ghosts of Fear." In this episode we cover the third and the fourth fears - The Fear of Ill Health and The Fear of Loss of Love.
The Fear of Ill Health is a manifestation of the final two fears - The Fear of Death and The Fear of Old Age. This is a fear we all all currently living through. We are living in fear of what is happening in the world. Everything is making us more worried. From the evening news, to a sneeze on the subway or bus. The Fear of Loss of Love comes out of primitive man. We stole mates then and now, we're luring them away with possesions from cars, to watches.
Symptoms of the Fear of Ill Health:
1. Auto Suggesstion
2. Hypochondria
3. Lack of Exercise
4. Susceptability
5. Self-Coddling
6. Intemperance
Symptoms of the Fear of Criticism:
1. Jealously
2. Fault Finding
3. Gambling
Link to the book:
https://amzn.to/2T1w1xb
---
Aakash
#books
#investing #personalfinance
I try to read the fifteenth chapter of Think And Grow Rich by Napoleon Hill. This chapter is titled “How to Outwit the Six Ghosts of Fear." In this episode we cover the first two ghosts of fear - The Fear of Poverty and The Fear of Criticism.
Each fear comes from two reasons - indecision and doubt, eventually morphing into fear. But these fears can be overcome, and Hill teaches us how. The first step to overcoming these fears is to have a strong Desire. He adds that each fear is a simple manifestation of thought and with the right thought and desires we can change the fears to focus on what's important.
Symptoms of the Fear of Poverty:
1. Indifference
2. Doubt
3. Worry
4. Overcaution
5. Procrastination
Symptoms of the Fear of Criticism:
1. Self-consciousness
2. Lack of poise
3. Personality
4. Inferiority complex
5. Extravagence
6. Lack of Initiative
7. Lack of Ambition
Link to the book:
https://amzn.to/2T1w1xb
---
Aakash
#books
#investing #personalfinance
I try to read the fourtneenth chapter of Think And Grow Rich by Napoleon Hill. This chapter is titled “The Sixth Sense: The Door To The Temple of Wisdom." It talks about the importance of cultivating a sixth sense which will help us in emergencies.
If you aren't great, either because you lack talent, or didn't have the right upbringing, you can still be great through imitation. Hill says, those who aren't great, imitate the great. Now this isn't you average "hero worship" but the willingness to learn from your heros. Hill did this through his 'Invisible Counsellors' which consisted of:
1. Thomas Edinson
2. Henry Ford
3. Andrew Carnegie
4. Ralf Waldo Emerson
5. Napoleon Bonaparte
6. Thomas Paine
7. Luther Burban
8. Charles Darwin
9. Abraham Lincoln
Hill was the Chairman of this council consisting of these people. He would consult with them twice everyday, once when he woke up, and once when he retired at night. This helped him build character through the great characters of these men.
The lesson of this chapter is if we are in pursuit of riches, we need a sixth sense. This sixth sense will come to us in emergencies. This sixth sense, if not innately present, can be cultivated through imitation.
Link to the book:
https://amzn.to/2T1w1xb
---
Aakash
#books
#investing #personalfinance
I try to read the thirteenth chapter of Think And Grow Rich by Napoleon Hill. This chapter is titled “The Brain: The Broadcasting and Receiving station for Thought." It talks how the brain influences your thoughts and desires.
Hill says there are three principles to bear in mind to transmute thoughts to desires with the brain:
1. The sending station - The Subconscious Mind
2. The receiving set - The Creative Imagination
3. The medium of broadcasting - Auto Suggestion
The stimuli through which you put these into action is Desire.
Link to the book:
https://amzn.to/2T1w1xb
---
Aakash
#books
#investing #personalfinance