After long a full book read.
- Your personal experiences with money make up maybe 0.00000001% of whats happened in the world, but maybe 80% of how you think the world works.
-How different experiences can lead to vastly different views within topics that one side intuitively thinks should be black and white.
- Luck and risk are both the reality that every outcome in life is guided by forces other than individual effort. They are so similar that you cant believe in one without respecting the other.
- The line between the bold and reckless can be thin.
- Risk and Luck are dopplegangers
- Focus less on specific individuals and case studies and more on broad patterns
- There is no reason to risk what you have and need for what you dont have and dont need.
- Knowing when you have enough
- Enough is realizing that the opposite an insatiable appetite for more - will push you to the point of regret.
-Takeaway from ice ages - you done need tremendous force to create tremendous results.
-Getting money is one thing. Keeping it is another.
-Compounding only works if you can give an asset years and years to grow.
-Controlling your time is the highest dividend money pays
-The ability to do what you want, when you want , with who you want, for as long as you want, is priceless. It is the highest dividend money pays.
-Having a strong sense of controlling one's life is a more dependable predictor of positive feelings of wellbeing than any of the objective conditions of life we have considered.
- Money greatest intrinsic value- is its ability to give you control over your time.
- No one is impressed with your possessions as much as you are.
- People generally aspire ot be respected and admired by others, and using money to buy fancy things may bring less of it than you imagine.
-Humility, kindness and empathy will bring you more respect than horsepower ever will.
- Wealth is what you dont see. Wealth is financial assets that havent yet been converted into the stuff you see
- If you spend money on things, you will end up with the things and not the money
- Rich is current income , may be spend on car/ house. But wealth is hidden.Its income not spent.
- Wealth is an option not yet taken to buy something later. Its value lies in offering you options, flexibility, and growth to one day purchase more stuff that you could right now.
- Building wealth has little to do with your income or investment returns, and lots to do with your savings rate.
-Learning to be happy with less money creates a gap between what you have and what you want.
-Past a certain level of income , what you need is just what sits below your ego.
- One of the most powerful ways to increase your savings isnt to raise your income. Its to raise your humility.
- Saving does not require a goal of purchasing something specific. You can save just for savings sake.
- Saving is a hedge against life's inevitable ability to surprise the hell out of you at the worst possible moment.
- The flexibility and control over your time is an unseen return on wealth.
- Having more control over your time and options is becoming one of the most valuable currencies in the world.
- There are times when its fine to be reasonable instead of rational with money.
- History is the study of change, ironically used as a map of the future.
- The correct lesson to learn from surprises is that the world is surprising
- The purpose of Margin of safety is to render the forecast unnecessary
- You can be risk loving and yet completely averse to ruin.
- The ability to do what you want, when you want , for as long as you want , has an infinite ROI.
- The biggest single point of failure with money is a sole reliance on a paycheck to fund short term spending needs, with no savings to create a gap between what you think your expenses are and what they might be in the future.
- People are poor forecasters of their future selves.
-Asymmetric aversion to loss is an evolutionary shield. Organisms that treat threats as more urgent than opportunities have a better chance to survive and reproduce.
- Progress happens too slowly to notice but setbacks happen too quickly to ignore.
- Growth is driven by compounding , which always takes time. Destruction is driven by single points of failure, which can happen in seconds, and loss of confidence , which can happen in an instant.
- Stories are more powerful than statistics.
- The more you want something to be true, the more likely you are to believe a story that overestimates the odds of it being true.
- Everyone has an incomplete view of the world.
- Coming to terms with how much you dont know means coming to terms with how much of what happens in the world is out of your control. And that can be hard to accept.
- Go out of your way to find humility when things are going right and forgiveness/compassion when they go wrong.
- Less ego, more wealth. saving money is the gap between your income, and wealth is what you don't see.
- Use money to gain control over your time
- Become Ok with lot of things going wrong. You can be wrong half the time and still make a fortune.
- Uncertainty, doubt and regret are common costs in the finance world. They are often worth paying. But you have to view them as fees (a price worth paying to get something nice in exchange) rather than fines ( a penalty you should avoid)
