Most people approach money based on scientific principles. There are many formulae and theorems on how to invest and grow money. After the stock market crash of 2008, Morgan Housel, author of the book ‘Psychology of Money’, observed that handling money is more of an art than science and the success in handling money depends on how one handles the emotions and stress associated with money.
Unlike hard sciences like Physics, money is not dependent on some universal rules, it has behavioral connotations. In 2008 Mr.Housel wrote a report titled ‘Psychology of Money’ that contained 20 behavioral aspects relating to Money. The book 'The Psychology of Money - Timeless Lessons on Wealth, Greed and Happiness' is an elaboration of the ideas that were briefly discussed in the 2008 report.
The book is structured across Introduction, 20 chapters followed by a postscript on the evolution of the American investor over the last century. 18 chapters discusses the behavioral aspects of money, the penultimate chapter is a summary of the principles discussed in the earlier chapters. Chapter 20 discusses how he invests his money.
