"The less selfish you are, the richer you are"

Morgan Hausel is a business and financial journalist (multiply awarded winner with a recognized reputation in business editing and writing), who published a book in September this year, which is being discussed by experts in the field. In his book, Hausel shares 19 short stories that explain multiple ways in which people think about money. He managed to raise one of the most important topics in the psychology of money and tried to describe what happens in our heads when we try to do something with money.

The main theses of the book go as follows:

1. Respect the power of luck and risk and you will be more likely to focus on things you can control.

2. Try your best to find humility when things go well and compassion when things go wrong. Apply this method to judge yourself or others.

3. Saving money is the gap between your Ego and income, and wealth is what you cannot see.

4. Wealth is created by putting pressure on what you could acquire today to have more opportunities in the future.

5. Manage your money in a way that will allow you to sleep at night with ease.

6. If you want to get more as an investor, the most effective thing you can do is increase your time horizon. Time is the most powerful force in investing.

7. To come to terms with the fact that many things may and will go wrong.

8. It's good to have most of the bad investments and a couple of outstanding ones. This is usually the best-case scenario.

9. Use the money to gain control over your time, because lack of control over your time is a major obstacle to happiness.

10. No one is as impressed with your wealth as you are. This is how you want respect and recognition. But you are more likely to get it through humility and kindness.

11. Just save. No specific reason is needed for savings. Savings, not intended for anything specific, is a protection against the inevitable ability of life to surprise you.

12. Determine the price of success. And be prepared to pay for it. Because nothing of value can be free.

13. Uncertainty, doubts, and regrets are common moments in the financial world. They are often worth paying for. However, this is a commission, not a fine.

14. The gap between what might happen in the future and what you need in the future to be successful is what gives you stamina, and stamina is what makes difficult magic over time.

15. Avoid extreme financial decisions.

16. You have to love risk because in time it will pay off. But you should avoid avalanche risk because it prevents you from taking on future risks that will pay off over time.

17. Identify the game you are playing and make sure that your actions are not influenced by people who play another game.

18. There is no single right answer, there is just an answer that works for you.

19. No matter how much you earn, you will never be able to get rich if you do not put an end to how much fun you can enjoy with your money now, today.

Most of the advice given by the author is used himself, his family lives by the principle: "saved money gives flexibility and control over their time" and sets aside a third of their income each month. Morgan is a supporter of drawing conclusions from history and extrapolating them to the results of today. He is skeptical about forecasts, plans, and believes that the financial future is solely a matter of the results of each individual.

So, the conclusions on the criterion of "Money" may be interpreted as money depends more on psychology than on finance.

Any financial model can be both successful for one and failing for another. It all depends on what you need from it. The main purpose of money is to allow you to feel in control of your life. The ability to do what we want, with whom, how much and where we want is priceless. And these are the highest dividends that are paid in cash.

From the point of view of "Psychology": The level of your wealth depends on what you think about money when you earn it; from realizing what they give you when you spend them and what they can bring you if you accumulate them.

So, let's polish our Ego and get rich with pleasure!

Zoryana Golovata.

Leader of the expert group on cognitive management