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The Psychology of Money Book PDF
The Psychology of Money is an insightful book that explores how our behavior around money shapes our financial success. During my college years, I worked as a valet at a nice hotel in Los Angeles, where I encountered a fascinating guest—a technology executive who was incredibly successful.
This guy was a genius. He created and patented a vital part of Wi-Fi routers when he was in his twenties and had built and sold several companies. On the surface, he seemed like the perfect example of success. However, his relationship with money was quite strange. It was a mix of insecurity and childishness. He always carried around a thick stack of hundred-dollar bills, showing it off to anyone who would look—even those who weren’t interested. He loved to brag about his wealth, especially when he was drinking, often in loud and inappropriate ways.
One day, he handed one of my colleagues a large amount of cash and said, “Go to the jewelry store down the street and get me a few $1,000 gold coins.” Just an hour later, he and his friends were at a dock by the Pacific Ocean, tossing the gold coins into the sea and laughing as they skipped them like stones, arguing about whose coin went the farthest. It was all just for fun, but it showed how careless he was with his money.
Not long after that, he broke a lamp in the hotel restaurant. When the manager told him it would cost $500 to replace it, he couldn’t believe it. He pulled out a huge stack of cash and handed the manager $5,000, saying, “Here’s five thousand dollars. Now get out of my face. And don’t ever insult me like that again.”
You might wonder how long this kind of reckless behavior could last, and the answer is, not long at all. Years later, I learned that he ended up going broke. The main idea of The Psychology of Money is that being good with money isn’t just about being smart. It’s more about how you behave and make choices with your money. And understanding our behavior can be quite challenging.