Collaborate on Bill Book Sample in Word Format for Finance with Ease Using airSlate SignNow

Bill book sample in word format for Finance

welcome back everyone to another deep dive you know we love to really dig into these fascinating books and today we're tackling a big one the psychology of money by Morgan howel yeah this is a good one I know you've read this one too right oh yeah cover to cover doged pages and all well then you know this isn't your typical Finance book definitely not it's not about like you know complex formulas or stock picking Secrets it's more about the psychology driving our financial decisions The Human Side of money AB absolutely how's premise is that understanding our own behavior our biases and our often irrational Tendencies is more important than you know mastering technical Financial knowledge and he does it in such a compelling way you know with stories and examples that anyone can relate to like he asks why do people buy lottery tickets when they can barely make ends meet right makes you think and is Warren Buffett success all about like his investing genius well we'll get into that but it's more nuanced than that exactly yeah and what can card counters in Las Vegas teach us about managing our own money so many interesting questions yeah hous uses those kinds of unexpected examples to illuminate these kind of hidden forces that shape our financial lives one of the first things it really struck me was House's point about how you know our individual experiences shape our financial decisions I mean is so true someone who grew up during like hyperinflation probably looks at bonds differently than someone who's always known stable prices totally he calls this our money script basically the set of beliefs and attitudes we develop about money based on our own personal history like you know where we grew up how our parents handled money you know even just the general economic climate of our childhood it's like it's like that story of the book about John F Kennedy his lack of firsthand experience with the Great Depression you know became a campaign issue wow he didn't know that voters were worried he wouldn't understand the struggles of everyday Americans you know those who would live through those tough times interesting that's a perfect example of how deeply ingrained those uh Financial anxieties can be yeah and how our past really shapes our present you know no absolutely what might seem like an irrational money decision to you might make total sense to someone else given their own unique background yeah like we all have our own money scripts right exactly so empathy and understanding are like essential in the world of personal finance totally recognizing those different perspectives you know those different money scripts is key to having more productive conversations about money whether it's with your partner or your family or even you know just with yourself okay so speaking of different perspectives the book also tackles the whole Luck versus risk thing you know how much of success is due to actual skill and how much is just plain luck yeah tough to tease apart for sure especially you know look at like extreme cases you know like billionaires or those massive business failures it's so hard to disentangle the two housel talks about Bill Gates Right brilliant guy no doubt but also incredibly Lucky in what way well he happened to go to this rare school that had access to like early computers a huge Advantage back then and sadly his good friend Kent Evans who was equally brilliant you know died young so it highlights how unpredictable life can be yeah it makes you realize that success isn't always a straight line right there are so many factors outside our control absolutely instead of trying to like you know extract simple lessons from these extreme cases focus on Broad patterns okay I like that broad patterns what kind of broad pattern well for instance one recurring theme is that more money doesn't always equal more happiness oh yeah right like winning the lottery doesn't solve all your problems it's more complicated than that housel calls this the goalpost keeps moving phenomenon oh yeah goalpost keeps moving I remember that can you like explain that as we get wealthier you know our expectations and desires they often rise right along with it so we end up like always wanting more needing more to feel satisfied this like running on a treadmill you're putting in the effort but not really getting anywhere exactly he Compares it to this rookie baseball player making a good living you know $500,000 not bad for a rookie right but then his teammate signs this massive contract for like $430 million suddenly that half a million doesn't feel so impressive anymore it's all relative right it's the hedonic treadmill we adapt to our circumstances both good and bad so our happiness levels kind of you know tend to revert back to this Baseline we're always chasing after that next level of you know Comfort or luxury so the key is to Define what enough means for us individually like what truly matters to us exactly otherwise we end up on this endless treadmill constantly chasing after more without ever feeling truly content that's a great point and it kind of ties into another key concept from the book The Magic of compounding oh yeah compounding is huge household really emphasizes that time is the most powerful force when it comes to Building Wealth you know like slow and steady wins the race absolutely consistent long-term returns are far more impactful than trying to chase those you know flashy short-term gains did you know that Warren Buffett the Oracle of Omaha himself made most of his wealth after he turned 50 seriously it's true it's the power of letting your Investments grow steadily over decades so it's not about finding that one hot stock tip it's about being in it for the long haul exactly it's not just about high returns it's about staying invested riding out those Market ups and downs and letting that compounding effect do its magic now you mentioned Warren Buffett isn't there like this hedge fund guy Jim Simons who actually has better annual returns than Buffett yeah that's right simons's average annual returns are higher but Buffett's been in the game for so much longer you know that longevity is what gives him the edge so patience is key patience and consistency it's like you you know the rule of 72 the rule of 72 what's that it's a quick way to estimate how long it takes for an investment to double divide 72 by your annual rate of return so like if you're earning 7% it'll take about 10 years for your money to Double H that's pretty cool never heard of that one before it just highlights how even you know seemingly small returns can snowball over time so we've talked about how our personal experiences shape our money views the Luck versus risk thing you know defining enough and the magic of compounding but one of the most like thought-provoking ideas in the book is this concept of embracing the tales can you unpack that a bit sure this is where Hassel kind of flips the script on how we typically think about you know risk and opportunity he says that in investing in business even in life a small percentage of events those outliers the tales of that bell curve often account for the majority of outcomes okay so like inventure Capital you know most startups fail a few do all right but it's that tiny handful that become those like massive gamechanging winners exactly the tals drive everything but why should we like care about the tales what do that mean for our everyday decisions it means we shouldn't shy away from you know calculated risks expect that things will go wrong more often than not Embrace those failures you know learn from them it frees you to focus on those opportunities that have the potential for those huge tail end wins so it's not about avoiding failure it's about like accepting it as part of the process exactly and it connects to this idea of room for error which we can talk about more later yeah okay room for error that's a good one it is it's all about building in buffers you know expecting the unexpected all right so we'll get to that later I'm definitely intrigued it's fascinating stuff yeah for sure we'll pick back up right after the break now where were we H yes room for error yeah I was looking forward to diving into that it's all about acknowledging that uncertainty is a part of life things rarely go exactly ing to plan no they definitely don't so housel uses this great example about Blackjack card counters in Vegas oh yeah the card counters they have this system right it gives them a slight Edge over the house they can like predict what cards are going to come up next kind of they track the cards that have already been played to get a sense of the probabilities so if they have a good hand they like bet big right actually no that's where it gets interesting even with a good hand they bet cautiously why if the odds are in there favor shouldn't they go all in well because they understand that even when the odds are good a streak of bad luck can wipe them out so they build in this buffer a margin of safety to protect themselves even when they're winning exactly it's about recognizing that chance plays a role you can't control everything so it's like they're playing a different game than the Casual Gambler right thinking long term exactly they're focused on sustainability on staying in the game not just winning every hand it's a good lesson for all of us I think it is it applies to investing to our careers even to our personal relationships having a bit of room for error allows you to weather those unexpected storms it gives you resilience Bill Gates right he famously insisted on keeping a year worth of payroll in cash at all times that's right and that wasn't just about financial Prudence it was about peace of mind knowing he had that cushion allowed him to take risks to innovate to push boundaries it's like it gave him the freedom to think big to fail fast and to learn from those failures yeah it's not just about hitting home runs all the time it's about having the ability to bounce back when you strike out it's about staying in the game and that brings us to another crucial point that hous makes you know we're not spreadsheets okay explain that way we're humans not algorithms we have emotions biases limitations we're messy unpredictable exactly trying to be perfectly rational all the time making decisions based solely on logic it's just not really istic like that study about retirement savings right yeah the mathematically optimal strategy involved using leverage to amplify returns right it sounds great on paper but yeah but imagine the stress of potentially losing your entire Nest Egg if the market takes a downturn it ignores the emotional toll the anxiety the sleeplessness no thanks totally I'd rather sleep well at night exactly it's about finding a balance an approach that aligns with your personality your risk tolerance and your emotional well-being so so being smart with your money but also like recognizing that you're human you're going to make mistakes absolutely it's about finding a system that works for you one that allows you to sleep well at night and that brings us to another important Point household makes the whole idea of narratives narratives like stories yeah stories but specifically the stories we tell ourselves about money oh right like those getrich quick schemes those are definitely part of it but it's also about those broader narratives you know those cultural myths about wealth and success okay so like the American dream yeah the idea that anyone can become wealthy with enough hard work and determination which you know there's some truth to that sure but it's not the whole story right exactly it ignores systemic factors inequalities and the role of luck so are you saying we should be skeptical of all Financial advice not necessarily it's about being Discerning questioning those assumptions you know those grand narratives especially when they promise easy solutions okay so be wary of those like too good to be true promises exactly look for evidence-based advice stuff that acknowledges the complexities of the financial world so amidst all this talk of risk uncertainty those narratives we buy into where's the good stuff where's the hope well hous doesn't leave us hanging he reminds us of what truly matters freedom and Independence yeah that's what it's all about right he argues that the greatest benefit of wealth the real payoff is the control it gives you over your time and your choices like you know being able to quit a job you hate or take that dream vacation or just spend more time with loved ones exactly having the flexibility to live life on your own terms he even shares a personal story about choosing a career path that offered less money but more autonomy it's a powerful reminder that money is a tool it's up to us to decide how we use it to build the kind of life we want but haven't we seen a trend of people working longer hours taking on more debt even his overall wealth has increased doesn't that contradict this idea of freedom it's a valid point more money doesn't automatically equal more happiness in fact it can sometimes lead to this Relentless pursuit of more without ever feeling truly content so are we supposed to embrace like a life of austerity no more lattes no more vacations not at all it's about finding that balance enjoy those things but be mindful saving money creates that Gap you know the gap between what you have and what want exactly and that Gap that Financial cushion it gives you options it gives you Freedom like a hidden return on your savings not just the interest but the piece of mind the flexibility to make choices without feeling trapped by your finances it's about aligning your money with your values creating a life that reflects what truly matters to you this actually ties into a really interesting concept house introduces this idea of wealth being what you don't see wealth being what you don't see okay I like that explain that one we tend to focus on the outward symbols of wealth right the fancy cars the big houses the expensive vacations but true wealth is often hidden hidden yeah it's the money you haven't spent it's the financial security that allows you to you know pursue your passions spend time with loved ones have peace of mind knowing you're prepared for life's curveballs he uses the example of Rihanna right she almost went bankrupt at one point after overspending yeah her financial adviser told her if you spend money on things you'll end up with the things and not the money wow so simple yet so profound right we can get so caught up in the Allure of stuff but ultimately it's about having that solid foundation and that brings us to another fascinating concept Financial energy wealth Financial energy wealth now that's a new one howo draws this parallel with the energy crisis of the 1970s remember how we overcame that crisis not by finding more oil but by becoming more efficient with the energy we had oh yeah we started building fuel efficient cars right and those energy saving appliances exactly so hous suggests we apply a similar principle to our finances instead of always chasing higher returns which are often outside our control focus on becoming more efficient with the money we already have so it's less about earning more and more about making smarter choices with what we've got precisely and one of the most effective ways to do that is through saving yeah I know I know not the most exciting topic but saving boring but it's crucial hous argues that Beyond a certain level of income what we truly need sits below our ego below our ego what does that even mean we get caught up in this cycle of wanting to keep up with the Joneses right bigger house fanc your car the latest gadgets but beyond a certain point it's not about meeting our needs it's about feeding our ego so we should all just live like monks no more fun no no it's about finding that balance enjoy those things but be mindful of your spending remember saving creates that gap between what you have and what you want that Gap gives you options gives you freedom it's that hidden return again right the Peace of Mind the flexibility the ability to say yes to the things that truly matter exactly and that brings us back to aligning your financial decisions with your values creating a life that reflects what you truly care about remember H's personal story about choosing a career path that offered him more autonomy yeah he valued his freedom more than a bigger payche it's a powerful reminder that money is a tool we get to decide how we use it to build the of life we want so it's not just about the numbers in our bank account it's about how those numbers translate into real life choices experiences and ultimately happiness exactly it's about using money to create a life that feels rich and fulfilling not just financially but in every sense of the word and that's what the psychology of money is all about wow we've really covered a lot of ground huh from those money scripts to The Magic of compounding and all those fascinating stories alil uses to bring it all to life yeah he's a great storyteller makes these sometimes complex ideas so relatable okay so before we wrap up what like really resonated with you what stuck out from all these insights H that's a good question you know I keep coming back to this idea of wealth being what you don't see it's so easy to get caught up in those external things you know like the fancy cars and big houses oh for sure social media is full of it yeah makes it hard to like remember what actually matters it is but H Soul reminds us that you know true wealth is about having those options the flexibility to make choices based on what you value not just what you can afford yeah to have the freedom to like spend time with your family pursue your passions you know exactly that's what resonated with me and also the whole we're not spreadsheets thing yeah we're human we're going to make mistakes we're emotional beings not robots trying to be perfectly rational all the time with money especially it's just not realistic so be kind to yourself right learn from those missteps find find a way to manage your money that feels right for you not just what some Financial Guru tells you to do so you know for anyone listening think about this knowing what you now know about all those like hidden forces that shape our choices what's one small thing you could do differently one little change in your financial life that could make a big difference down the road could be something simple set up an automatic savings plan track your spending for a month even just having an open conversation with your partner about money it can feel feel daunting but those little steps can add up right like those small consistent Investments over time exactly the key is to take action start moving in the right direction towards you know greater awareness more control and ultimately that Financial Freedom we all crave so for everyone out there remember it's not about perfection it's about progress financial success is a journey not a destination and we're all in this together learning growing and hopefully making those smart choices one step at a time thanks for joining us for this deep dive absolutely until next time