54 pages • 1 hour read
Morgan HouselThe Psychology of Money
Nonfiction | Book | Adult | Published in 2020A modern alternative to SparkNotes and CliffsNotes, SuperSummary offers high-quality Study Guides with detailed chapter summaries and analysis of major themes, characters, and more.
Essay Topics
Which of Housel’s recommendations involves self-awareness and self-control? How does he persuade the reader that these skills are as important as the technical aspects of financial management? Do you agree with him? Why or why not?
Housel employs anecdotes to make his recommendations lively and memorable. What are the advantages of this approach? What are the limitations? Is it an effective tactic? Why or why not?
The author distinguishes between decisions that are “rational,” and those that are “reasonable.” For Housel, what is the difference between these approaches and which one should the average person aim for? Do you agree with Housel’s categories?
What does Housel value most in life, and how does his financial strategy reflect his priorities? What are your own priorities? What financial tactics would work for you to achieve your own goals?
Why does Housel make a distinction between being “rich” and being “wealthy”? Do you share his views? Why or why not?
According to Housel, what are three errors that people often make when managing their money? How can people avoid these mistakes? What other errors can you think of that Housel did not address?
Housel argues that the media and financial industry tend to dissect extreme examples of success and failure, yet the average consumer learns very little from examining specific characters. In what ways, if any, does the media influence your own views on money and success? Will your perception of the media change going forward? Why or why not?
Which biases does Housel believe inform people’s financial decisions? How can people ensure that these biases don’t lead to their financial ruin? Are there any factors or biases you believe Housel overlooked? What are they, and why are they significant?
Analyze the role between personal circumstances and financial decisions. What factors does Housel examine? What personal circumstances affect your own financial decision-making and goals?
In his personal chapter “Confessions,” Housel describes his “bar-belled” approach with his own money, reminding the reader that, “You have to survive to succeed.” What does he mean by this, and what is his advice for both short-term survival and long-term success? What does survival look like to you? What short- and long-term financial goals could you work toward? How?
