Rx Note

Introduction In The Psychology of Money , Morgan Housel explores the strange ways people think about money through 19 short stories. These stories teaches you how to make better sense of one of life's most important topics. Morgan Housel argues that personal financial success is less about what you know and more about how you behave. No One is Crazy People from different generations , raised by parents with varying incomes and values, born into diverse economies, and experiencing job markets with different incentives and degrees of luck, learn vastly different lessons. Everyone has a unique experience shaping their understanding of how the world works. What you have experienced is inherently more compelling than second-hand knowledge. Therefore, everyone develops a distinct set of views about money, leading to significant variation from person to person. For example, someone raised in poverty might approach risk and reward in ways a wealthy banker's child could never truly comp...

Introduction " Poverty has limited our imagination. " This is a saying that I like a lot. We may have dreamed to be rich, to travel the world , to own a half million bungalow, to own a luxury sport car. However, we may not understand the hidden value to own a land in a virtual world, or the need to buy a 10k luxury watch. Personally, the main reason I want to be rich is to have greater freedom of choice in the future. I dislike feeling financially constrained and limited in my options. The Lifestyle Creep My colleague and I recently discussed this. While our current salaries place us in the M40 category (middle 40% income group) in Malaysia, there are just as many dreams that we sacrifice for living. Through financial planning , we give up things we love (e.g. the latest gadgets) to prioritize things we value more, like our children's education or a comfortable retirement. Compared to 5 years ago, our salaries have doubled, but so has our standard of living. With a RM 30...