The Psychology of Money- Summary

In the 15-minute audiobook by David Sterling, there was quite a lot of dense information that was enlightening. It is quite unique when the book frames "wealthy" not merely about what you have, but what drives you become wealthy is more about patience, behaviour, emotions, experiences, and psychology in general.

Everyone sees money through a different lens, based on how they grew up, the economic conditions they experienced, and wins or losses in the past. They might be unreasonable to others, since money is about emotions rather than purely logical.

Success and failure involve many factors, such as luck, knowledge of timing (speculating), and risk assessment.

The compounding effect is powerful and sometimes underrated. Small, consistent actions over a long time are more valuable than short-term wins. Patience is an advantage in this game.

True wealth is money you did not spend (patience, needs over wants), flexibility (you have money when you need it), independence, and control over time. Compulsive spending is consumption, not wealth.

Saving is about behaviour, not income. It's not about earning income but controlling lifestyle inflation. High income with no savings is fragile. A medium income with strong saving habits builds resilience.

Financial freedom is the ability to wake up and decide what you want to do with your day. This autonomy is more than status or luxury.

Plan for uncertainty, not certainty.

You don't need to be brilliant; you need to avoid ruin. Consistency, humility, and patience beat brilliance with fragility.