The Psychology of Money
Morgan Housel · 2020
A set of short essays on how people actually handle money — where patience, time, and behaviour matter more than spreadsheets. Its central lesson is that long horizons and compounding, not clever timing, drive lasting wealth.
Simulations to go with this book
- Compound InterestWatch the book's headline idea play out: small, steady growth over long horizons dwarfs short-term moves.
- Hyperbolic Discounting & Present BiasWhy we over-value money now and undersave for later — the bias Housel keeps returning to.
- Prospect Theory: Loss Aversion & FramingLoss aversion and framing: the emotional wiring behind the money mistakes the book describes.