Is This The Greatest Money Book Of All Time?

Introduction

There have been a lot of books written about money. But does one stand out above all the rest? This article will put forward one candidate for the greatest money book of all time. It’s a bold claim, I know. But here we go!

After watching an episode of Steven Bartlett’s ‘Diary Of A CEO’ featuring renowned finance author Morgan Housel, I felt compelled to ponder this very question.

Bartlett introduced his podcast by stating that Housel’s famous ‘The Psychology Of Money’ was, in his opinion at least, the greatest money and finance book ever written and that it was the single most significant thing responsible for his success as an investor. His brother recommended it to him when he first became wealthy as an aid in helping him to keep the wealth that he had earned.

My Top Three Greatest Money Books

Having read quite a few finance books myself I think that ‘The Psychology Of Money‘ is also my favourite. It’s a tough field though. I would say that my top three would probably be ‘Your Money Or Your Life’ by Vicki Robin, ‘The Millionaire Next Door’ by Thomas J Stanley and of course ‘The Psychology Of Money’. But there are so many other great ones. (Click any of the links to buy from Amazon)

What makes these top three stand ahead of all of the rest? What makes them three of the greatest money books? I would say the feature that they all share and that makes them so good as well as so useful and easy to relate to is that all three focus largely on our relationship with money. They speak to the fact that the large majority of us tend to misuse money and miss opportunities to make it work for us. They also focus on habits and simple attitude changes that we could all make if we were serious about becoming more financially independent.

So, having now declared ‘The Psychology Of Money’ as the all-time champion of personal finance books, let’s delve deeper into exactly why I (and Steven Bartlett) like this book so much.

The Psychology Of Money: Timeless Lessons On Wealth, Greed and Happiness 

by Morgan Housel

Money Behaviour

Doing well with money isn’t necessarily about what you know. It’s about how you behave. And behaviour is hard to teach, even to really smart people.

Housel dives deep into the intricate and often perplexing realm of financial decisions, steering away from traditional economic theories to explore the profound impact of human behaviour on wealth creation.

Real Life Stories

With a compelling narrative style, he weaves together stories and insights that bring the subject to life. Drawing from real-life examples and historical events, he skillfully illustrates how our emotions, biases, and innate behaviours can significantly shape our financial destinies.

The book includes 19 short stories exploring the strange ways people think about money and teaches you how to make better sense of one of life’s most important topics.

As Morgan says on the back cover ‘Money, investing, personal finance, and business decisions – are typically taught as a math-based field, where data and formulas tell us exactly what to do’. 

‘But in the real world people don’t make financial decisions on a spreadsheet. They make them at the dinner table, or in a meeting room, where personal history, your own unique view of the world, ego, pride, marketing, and the odd incentives are scrambled together.’ 

A Book For Everyone

One of the book’s strengths lies in its ability to resonate with both seasoned investors and those just beginning their financial journey. Housel doesn’t rely on complex jargon or convoluted theories; instead, he communicates with a simplicity that makes the concepts accessible to all readers. 

As a teacher, I find this approach particularly valuable for students and individuals seeking to grasp the fundamentals of personal finance. It’s one that I even recommend to my high school students.

A Modern Approach To Money

The book challenges conventional notions of wealth management by placing human behaviour at the forefront. Housel contends that understanding ourselves is crucial in navigating the tumultuous seas of financial markets. 

By delving into the emotional aspects of decision-making, he encourages readers to reflect on their own attitudes towards money, risk, and success.

Takeaway

A key takeaway from “The Psychology of Money” is the acknowledgement that financial success is not solely determined by market trends or economic theories. Instead, it hinges on our ability to comprehend and master the psychology behind our financial decisions.

It Might Depend On Your Age And Stage Of Financial Literacy

I recently wrote an article about the best books to read in your 20s. I really wish I read books about personal finance when I was in my 20s. Some of these on this top 10 list could be useful if you are at the early stages of your personal finance journey. Check them out too.

 

Conclusion 

Morgan Housel’s “The Psychology of Money” stands as a beacon of wisdom in the often murky waters of personal finance literature. Through captivating storytelling and a keen understanding of human behaviour, it provides readers with a compass to navigate the unpredictable terrain of financial markets. 

I wholeheartedly recommend this book for its timeless lessons that offer invaluable insights into the psychology of money and wealth. I also recommend my other two favourite books referred to earlier. All three have had a profound impact on my understanding of how human behaviour leads to wealth creation or wealth destruction.

Footnote: I find that I can’t keep up with all of the reading that I want to do without using audiobooks. Being able to listen to books while commuting or walking is a game-changer for me. Check out Audible’s free trial if you haven’t tried it yet.

 

Related articles:

Top 10 Finance Books To Read In Your 20s

10 Personal Finance Books You Should Read

Your Money Or Your Life