(11) Learn to Say ENOUGH : world famous book REVIEW🙏The Psychology of Money🙏Kanthrisa

(11) Learn to Say ENOUGH : world famous book REVIEW🙏The Psychology of Money🙏Kanthrisa

Author Name:kanthrisa wisdom

Youtube Channel Url:https://www.youtube.com/@kanthrisawisdom

Youtube Video URL:https://www.youtube.com/watch?v=8e8YUDx5Juw



Transcript:
(00:03) One can live without intelligence. One can live without being happy. One can live without friends. But one cannot live without [music] money. Money is integral part of our life, everybody's life across the globe. This is a reality of 800 crores of people. We have been taught from childhood to earn money, but nobody really taught us to understand money.
(00:46) So, it is very important to know how money is [music] playing a vital role in our day-to-day life. Hence, we can experience [music] peace within. So, there is a book called Psychology of Money written by Morgan Housel. So, I have read this book few years ago. I have done a podcast in Telugu, also. So, many people liked the presentation.
(01:18) And few asked me to do it in English, as well. Because [music] presently, I'm working on a book to write how money having a direct connection [music] with everybody's life and how a common man should understand the money in order to live a peaceful life. Having money is a different matter, but understanding money is something deeper.
(01:48) So, today, [music] this particular podcast about everybody who is having relationship with the money in one way or other. Let's go into it. First of all, let's know about the author Morgan Housel. Who is [music] he? He is a renowned financial writer and a former columnist for the Wall Street Journal and the Motley Fool.
(02:19) So, he is a two-time winner of the Best in Business Award from the Society of American Business Editors and Writers. So, many people have written about money, but why this book attracted millions of uh readers? This book [music] was published in 2020. The Psychology of Money has sold millions of copies worldwide >> [music] >> and is widely considered a modern-day classic in personal finance.
(02:53) Since I have been writing books, >> [music] >> I can clearly say that his writing style is quite unique and [music] simple. So, unlike traditional financial experts who focus on complex mathematical formulas, stock charts, or technical jargon, Morgan focuses on human psychology, behavior, and storytelling. He explains money is a way that anyone can relate to.
(03:21) So, many people can have money at the moment of their birth because of their ancestral property, [music] they're having right away in their hands. Few people may not earn even a lakh rupees when they [music] reach their 60s. So, that is a different ballgame altogether. The real question, the crux of the matter is how you look at the money.
(03:48) So, what kind of relationship you have established with the money [music] and how that relationship is impacting your personal life. One has to think about all these things and take them into consideration um to lead a peaceful life. When we [music] think in a global perspective our um country's economical situation, that particular thing is different, but mm how what kind of understanding you have money what kind of understanding you should develop within.
(04:23) So, that's what Morgan Housel says uh in the in this book. So, let's go into that. Then um we'll we'll also uh know by the end of this podcast that having money or not having money is not the issue, but having the right understanding is actually most crucial uh thing in our life. The essence of this book is very simple.
(04:51) >> [music] >> He simply says that learn to say enough. So, the hardest financial skills [music] is getting the goal posts to stop moving. If you constantly compare yourself [music] to others your expectations will keep rising and you'll end up taking unnecessary risks that ruin your peace of mind. So, this is actually the crux of the whole book.
(05:16) So, this is a book having a kind of uh spiritual bent of writing. It talks more about you rather than money. It talks about your understanding rather than money, how much money you stacked [music] in your bank. Okay. Let's go into it. So, let's begin >> [music] >> with a simple question today. So, how do you feel when you think about money? For most of us, money is just is not just a number in a bank application. It is an emotion.
(05:51) [music] It's a stress because I have seen them from my childhood, many [music] people lived a stressful life not because having enough money or not because uh the reason they really don't know how much money really they want. So, for a common man, it's an emotion, it's a stress. And as well as security is directly linked with money.
(06:15) >> [music] >> Sometimes it is envy and sometimes it is freedom and sometimes anxiety. We spend decades studying mathematics, engineering, medicine, or business, but almost no time learning how we actually behave with the money. Is not something you spend or money is not something you keep. Money is something we we should have the right understanding about.
(06:45) So, as already I have mentioned the book title, The Psychology of Money by Morgan Housel. It completely changed the way I look at [music] wealth. Though I I have had my previous understanding which almost correlated with his [music] uh description about uh uh the money. Okay? So, Housel makes a profound point right at the beginning.
(07:12) [music] Doing well with the money has little to do with how smart you are. >> [music] >> And a lot of to do with how you behave. Finance is rarely taught as a psychological discipline. We treat it like a physics with rules and formulas, but in the real world, people don't make financial decisions at a uh spreadsheet. They make them at the dinner table shaped by their upbringing, pride, fear, and personal history.
(07:43) So, money, [music] you cannot deny it. It is an undeniable factor, core part of human life, at least worldly life. You cannot ignore it and expect [music] to live a peaceful, well-balanced life. In reality, the deep sleep you experience have no relation with the money, but our wrong understanding about the money disturb the peace. It is possible.
(08:12) Today, I want to share three vital lessons from this book that will help us >> [music] >> build not just financial wealth, also the peaceful mind, which everyone [music] desires. So, let's begin with the first big takeaway. The true wealth is freedom, not status. So, most of the people consider money as status.
(08:37) Even in our movies, this particular formula has been um become the most important part. A rich man and a poor man. It is all about status. Rich people having big big cars and right um the people who doesn't have money >> [music] >> living in in in huts. So, it is all about status, but Morgan says that [music] the true wealth is freedom.
(09:06) Why did he say that? So, the highest form of wealth is the ability to wake up every morning and say, "I can do whatever I want today." That is freedom. In our modern world, we often confuse [music] spending money with having wealth. You may be having enough wealth, but it doesn't mean that you have every right to waste that money.
(09:28) So, we see someone driving a um $1,000 sports car and think, "Wow, they are so But as Morgan Housel points out, the only thing you know about that driver is that they have uh $100,000 [music] less than they did before they bought the car. So rich is [music] current income. Wealth is hidden. It's income that lies unspent.
(10:01) That's what says Morgan [music] Housel. So what have what rich people have been doing? Even I have seen many people. They try to show off the money in the form of cars, watches, and big houses. Everyone does that. There is no problem in doing that. That is the definition of the rich. They are showing off their wealth.
(10:27) But wealth [music] is options. Wealth is flexibility. Wealth is the luxury of taking a break when you are burned out or leaving a toxic job without panicking. A less rich man can live a wealthy life. A rich man can have best AC and the best bed in his bedroom, but he may be having uh sleep [music] problems. But a wealthy man without having AC >> [music] >> and a good bed can experience a good sleep because he has the right mind.
(11:12) Think about that. A janitor with no formal financial educations [music] beat a Harvard executive because of behavior, patience, and humility. So money buys us freedom. If you spend everything to project status, you become a slave to your expenses. It is the most important takeaway. Don't become [music] the slave of your desires.
(11:39) And the most important crux of this book define enough and master the rule of compounding. [music] So, the hardest financial skill is getting the goal post to stop moving. So, I have had a friend. When we came to the city, he said, "At least I should be having 5 lakh rupees [music] in my account by end of this year.
(12:10) " And he worked really hard because [music] at that time I have no idea what money is, what to do. I was struggling to settle down in this uh city. He's a good painter. And day in day out he worked hard. And he really made 5 lakh rupees end of that year. But suddenly he [music] changed his goal post.
(12:33) He was saying something else after that uh reaching the goal. He said, "Now I want to make 20 lakhs in this year." So, by and by by and by I have seen clearly [music] that he's though having enough money in his bank account, he was not happy at all. Because he was moving the goal post swiftly and trying to adjust himself with that, shifting the goal post, and unable to find the balance between him and the wealth the [music] the money he's having.
(13:07) There is continuous struggle within. You might be also have seen >> [music] >> people that kind of mentality. So, modern society is built on comparison. The biggest curse to our peace is comparing ourselves with somebody else. The moment you achieve a goal, your mind naturally looks at someone who has more. Otherwise, how do you know that you are rich or poor? Only with the comparison.
(13:37) I was born in a small village. There a rich man was there. And he doesn't have a big bungalow like a >> [music] >> superstar having a bungalow having a superstar. Our superstar having a bungalow. But we considered him as rich. He was only riding a scooter [music] since no one is having a scooter in that village.
(14:03) Obviously, we considered him as rich. But even ordinary man right now had a scooter scooter these days. So, is he rich or poor? So, that is defined only because based on comparison. So, the moment you achieve the goal, your goal, your mind naturally looks at someone who has more. Because you have not defined enough. The real peace comes when you [music] say or assert that in this is enough for me.
(14:37) That enough actually defines your state of mind. >> [snorts] >> If you don't define what enough means, then you will con- constantly risk what you have and need for what you don't have and don't need. >> [snorts] >> There is a story. [music] Rajat Gupta born in Kolkata orphaned as a teenager. He rose to become the head of McKinsey [music] & Company and sat on the boards of global gains like Goldman Sachs.
(15:14) By any metric, he was a massive success worth over 100 >> [music] >> million dollars. Yet he wanted to become a billionaire. Driven by the desire for more, he engaged the the insider trading, got caught, and went to prison. He lost his reputation, freedom, and self-respect all for money he didn't even need. This is a real story.
(15:42) Even I have seen few people risking their life with misunderstanding about the money just because they have compared with somebody else and they really wanted to to become super rich. Already they are rich, but they have they don't have um the caliber to say enough. You might have heard the famous uh wealthy man, Warren Buffett.
(16:14) So, in every uh book written about money, his name is mentioned. Because Warren Buffett is not just a great investor, he was a good investor for over 75 years. Because he knows how to maintain the uninterrupted consistency. [music] So, good investing is not necessarily about making good decisions. It is about consistently not screwing up.
(16:45) So, most of the people lack the consistency. Rather than making a money in a month um with uh putting unnecessary hard work, make money every month in a small portion and compound it and put together all the monthly income >> [music] >> so that slowly slowly slowly um the money is created. So, know your enough. That's what Morgan Housel says, don't take unnecessary risks out of greed.
(17:22) The greed is the biggest problem. It is a psychological phenomena. A person who is having money or a person who is not having money at all, both can have greed. And sometimes a person who is having money can live a greedless life. While the other person who doesn't have even a single penny with him uh can have a greedy mind.
(17:51) So, actually if at all we have to define the money, it is just a tool. Which can um feed your necessities. For a common man >> [music] >> money is not about buying a luxury yacht or a private jet. It is a fundamental tool for peace of mind. You cannot ignore money and pretend it doesn't matter. When you struggle [music] with debt or live paycheck to paycheck financial stress bleeds into your health your personal relationships and your [music] mental peace.
(18:32) Money is an integral part of life and making peace with it is essential. So, one of the most comforting concepts in the book is planning for things or or to not to according to the plan. Housel calls this having [music] a margin of safety. So, you don't keep emergency savings just to earn interest in a bank account.
(19:01) You keep emergency savings so that when unexpected life events happen a medical bill or a job loss or a market crash you don't panic. So, keep some money in the safe [music] and never touch that money. So, these all are things that actually common sense. But, the thing [music] is we have never given the right amount of time to understand the significance of money in our day-to-day lives.
(19:38) Most of the people uh simply considers money so that they can to to >> [music] >> a tool to show off. So, Morgan Housel's book conveys something very profound. If you really want to cultivate a healthy, peaceful relationship [music] with the money, keep these three core principles in your mind. The first, focus on true wealth.
(20:18) Wealth is what you don't see. Use money to buy back control over your time, not to impress people who are not paying attention anyway. Luxury anyone can seek, there is no problem. But, >> [music] >> is there any hidden intention behind that you want to show off your wealth or a car or a bungalow to somebody, what if they are not paying attention? That brings a kind of disturbance.
(20:53) And the second core principle is define enough and be patient. So, avoid moving your goal post out of your greed. Let compounding work. It's quite magic over time. So, be patient if you really want to become rich man, [music] be patient. And the third most important core principle is build a margin for safety. So, save money for peace of mind.
(21:25) Don't purchase everything you come across. Don't have misunderstandings about money. And at home talk to your kin and kith about money and how money can be understood. How money can be [music] viewed. So, that one can live a peaceful life. So, money matters. Behavior is more important than the intelligence. So, doing well with the money has little to do with how smart you are and
(22:11) everything to do with how you behave. You don't need a financial degree to build wealth. You just need patience and discipline. So, again and again he says that. So, never depend upon the luck and the risk so that um both can offer a good returns. So, success is not purely the result of hard work. And failure is not always the result of laziness.
(22:42) So, both luck and risk influence outcomes in life. Be humble when things go well and be compassionate when yourself with yourself when they don't. So, always learn to say enough. This is the most hardest financial [music] skill. That's what Morgan says. That say enough. So today you have 1000 rupees and someone says that if you work two more hours, you will get 5000 more rupees.
(23:18) Then mind says go after it. So at that time you have to say this is enough for me. So I'm going to spend my time with my family and I'm going to watch movie which I like. So say enough. So getting rich and staying rich are two different aspects of life. So getting rich requires taking risks, optimism and putting yourself out there.
(23:49) But staying rich requires the opposite. Humility is important. So whatsoever you have already, make sure that should stay. Over it, you try to build something. So in order to become rich, we don't have to uh put everything at risk and look in the wide open for greater results. And also realize that money buys freedom.
(24:31) So the ultimate value of money is not buying nicer things. It is buying control over your time. The ability to wake up every morning and say, "I can do whatever I want today." This is actually the real uh wealth. Having the rightful mind. And the most important thing, whenever you are trying to buy something or whenever you are looking at anything, always keep this thing in your mind.
(25:05) But, whether you are holding a cup or looking at a car or talking on your phone. So, you are dealing with the money all the time. So, in this world nothing is free. Everything has its own price. And the last most important point. So, Morgan says that play your own game. So, many people give many interesting advices. Don't fall for them.
(25:38) Don't invest because someone said so or your friend invested and gained. You try to understand about that particular risk you're about to take. So, once you lose money, you are not going to get the money back. So, before you invest or before you sign a paycheck or before you um uh buy a piece of land, think [music] patiently that how that particular activity is important in your life.
(26:18) Otherwise, mistakes can happen. Whenever you are trying to invest or buy something, always keep your family in your mind. Let them know your ideas. Don't take heroic decisions to prove a point to your family that see, overnight I became super [music] rich. Every success is short-lived. [music] But to live a long life with great peace of mind, you have to understand the money
(27:02) and how it is having a direct deep relationship with your day-to-day life. So, if you get time, please buy and read that book. I'm also [music] planning to write a book um the reasonomics uh very soon. So, in the Morgan actually talks about uh the money in the not ordinary man's concept context, but uh he talks about wealthy people, how they manage their >> [music] >> wealth, how greed um brought down someone's empire to the ground.
(27:44) Mhm. [snorts] How impatience [music] uh lead to misery and all that. But my subject is totally different. 80% of the people having doesn't have great money with them. Yet, they're dealing with money all the time. So, my takeaway is totally different from Morgan's takeaway. >> [music] >> But money is money. The people who are listening to this podcast, they might be millionaires and a common man.
(28:13) But one thing I really like [music] from this book, the important takeaway, and you can write in big letters and stick on your wall, that learn to say enough. So, this is my title for my podcast also, learn to say [music] enough. Okay? So, thank you so much. Uh until next, have a wonderful day and night and life.
(28:42) So, whenever you are investing or buying something, keep your family in your mind. That's what uh the advice I want I would like to offer to you. Okay? If it is worth practice it. Otherwise, throw all these things into dustbin. So, whether you live near or far away from me live a peaceful life and stay blessed.
(29:08) This is what I say. Thank you.