10 Lessons From The Psychology Of Money

Psychology is the scientific study of the mind and behavior as defined in OSU.edu.   I wonder how money can be studied in such a manner to give more clarity on how we make it and use it to give more satisfaction in life.  In this blog, we will define the 10 lessons we can learn from the International Bestseller book, the Psychology of Money by Morgan Housel.   Click here to get a free copy of the book.   Thank me after. 

1. Building wealth takes time. More time than we may be willing to acknowledge. Think about Warren Buffet, who only became incredibly rich in his later years. The principle for building a massive impact on your money came from the seed principle.  Everything in this world came from this idea and it takes time to be able to harvest the fruit. 

The fundamental universal law that God wired into the operations of both spiritual and natural things on the earth. Jesus gives us the essence of this principle in the verse above. A seed is something that is put on the earth and produces a larger result tomorrow. It may be small and almost insignificant today, but it has the potential to become big tomorrow.

Another parable put he forth unto them, saying, The kingdom of heaven is like to a grain of mustard seed, which a man took, and sowed in his field (Matthew 13:31, KJV)

Wealth is a result of hard work, saving and investing. It's not something that happens overnight or by chance. Wealth creation takes time, but it's not impossible. There are many people who have become wealthy over the course of their lifetime, and there are many ways to get there.

The first step is to know the fundamental universal law that God, seed is something that is put on the earth and produces a larger thing. This means that if you plant money into an investment opportunity, it will grow into more money over time. It's important to understand this principle because it will help you stay focused on building wealth over time rather than trying to get rich quick with risky investments or scams.

The next step is finding ways to make money work for you instead of against you by using compound interest as much as possible. This means putting your money in accounts at banks with high-interest rates so that your money can earn even more interest over time without having to take any action on your part except depositing more money into the account each month or quarter (depending on the frequency they pay out interest).

Another way to build wealth quickly is to find ways to increase your income through side hustles or freelance work online such as writing articles

2. Sometimes it’s not your talent, your skills, your qualifications, your connections, or even how wealthy you are, sometimes it just came out of your attitude when you started. You gotta respect that. Think of Tony Elumelu. Be humble.  We know that the person who started from the very beginning has the attitude to bless us, He wants us to prosper and get the best of what we need every day.  He provides for our needs more than we can even ask or think because He is a blesser.  He wants us to be blessed. 

Luke 6:21. Blessed are you who hunger now, for you will be satisfied. Blessed are you who weep now, for you will laugh. I love this verse because it's a good reminder that no matter what kind of difficulty we're currently experiencing in life, there is always a bright future ahead.

When we think of success, we usually think of those who have achieved a lot. They have achieved a lot because they are good at what they do or because they have a lot of talent.

However, there are many people who are successful and yet we do not know much about them. They may not have done much in terms of fame or money but they live their lives with gratitude and happiness.

There are many factors that can lead to success and one of these factors is attitude . You may not be able to control whether you have an optimistic or pessimistic attitude but you can control how you react to situations in life.

We know that the person who started from the very beginning has the attitude to bless us, He wants us to prosper and get the best of what we need every day. He provides for our needs more than we can even ask or think because He is a blesser. He wants us to be blessed.

You might want to ask yourself: Am I humble enough? Do I let go of pride? Do I keep my mind open? Do I stay calm in stressful situations? Do

3. Learn and be wise and apply it.  Some book chapters should be really short. Short chapters are easy to read. Not everything should be said in plenty of words. A word is enough for the wise, a short chapter is enough for the wise.  

A short chapter is enough for the wise.

—Proverbs 25:11 (NIV)

I love reading, but I don’t always have time to read a whole book. I have a busy life with work, family and other commitments, so I often only have time to read a few chapters at a time.

I also love sharing what I have learned with others, so I am always looking for ways to share wisdom in bite-sized portions.

I recently came across a great new book by author Charles Capps called A Word for the Wise (Thomas Nelson), which contains 100 short chapters on topics such as wisdom, faith, relationships and more. Each chapter is only two pages long and can be read in just a few minutes!

These bite-size chapters are perfect for when you’re traveling or waiting somewhere — like at the doctor’s office or when waiting in line at the grocery store. It’s also a great way to encourage friends and family who might need some encouragement or advice on specific topics that you know about well from your own experiences (like parenting).

4. Money is just a tool.  It is not so much about physical money, it is so much about what you think about money itself.  The mindset is more powerful than the cash itself.  Your mindset determines how much you can make, how much you can save, how much you can multiply, and ultimately, how happy you will be.  When you learn the true sense of being blessed then you will appreciate more the impact of money and how you can bless others in return.  

You see, when we appreciate what we already have in our lives and understand that everything comes from God then we are able to see how we can help others - whether through financial means or through personal relationships. When we truly understand this concept then we become happier people overall because we know that there is always something good in our life regardless of our financial status or material things that we might have acquired along the way.

Money should be used as a tool for helping others not just yourself. Money should never be seen as an end goal in itself but rather as a means for helping others, especially those who are less fortunate than us.

5. Stop buying things to please people who don’t care. And in many cases, people really don’t care. Society is always looking for the next gist, and you don’t want to always be the gist, except if you are contesting for a political position. Make your decisions based on inner convictions, not because you want to impress a neighbor who probably doesn’t care.

People are always busy trying to impress others.

They are always trying to buy things that will make them look good in the eyes of their neighbors.

We live in a society where people are judged on what they do and how much money they have. You need to stop trying so hard to please these people who don’t care about you.

They want you to buy nice things, but they don’t care if it makes you happy or not. They just want to be seen with someone who has a lot of money, who is doing well in life, and who can take them places they cannot go themselves.

You need to stop buying things just because other people want you to have them or because society wants you to have them too!

You need to start making decisions based on your own convictions and what makes sense for yourself, not what others think about it or what society thinks about it!

6. Be very careful about your attitudes towards money.  It will determine how much of it you will make, control or use.   It's important for us to realize that our thoughts about money are often wrong or misleading, due to cultural conditioning and our own personal experiences with money growing up in our families. We need to be very careful about our attitudes toward money because they will determine how much of it we will make, control or use.

7. Always be optimistic. There’s a reason why the word ‘optimism’ is used to describe an attitude towards life. It’s because optimism is a very important part of who we are and how we live our lives.

Optimism is not just about being hopeful about something good happening in the future, it also involves being realistic about the present and how you can make your life better now.

Optimists believe that they can make a difference with their efforts, even if circumstances seem against them. They know that bad things happen sometimes but they don’t let those things keep them from trying again and again until they succeed. They know that failures are part of success so they don’t get too discouraged when things don’t go their way.

Pessimism never achieves anything. In the long run, only an optimist will still be around when the game is over. In spite of your present circumstances, whatever that may be, you need to believe that the future will be better. That’s what can keep you going in spite of all odds against you today.

8. Be careful with the information you consume, not all of it is applicable to you. Objects in the mirror are closer than they appear. But that’s not relevant for you, except you are the one driving the car. 

Objects in the mirror are closer than they appear.

That’s not relevant for you, except you are the one driving the car.

And that is why you need to be careful with the information you consume.

You have probably heard about confirmation bias and cognitive dissonance. These are some of the reasons why we tend to believe our own opinions and reject other people’s opinions. We like stories that confirm what we already think about something or someone, and we don’t like stories that challenge us to rethink our beliefs.

This is especially true when we feel strongly about an issue or a person. We want to believe that we are right, so we seek out information that confirms our opinions. This can be a problem because it leads to poor decision making when it comes to people and issues where there are no clear answers — they are more complicated than that.

9. Good things take time.  Our investments, in knowledge, in skills, in money, and in relationships will take time before they bear fruit. Be patient. There is a time to plant and a time to harvest. Be patient.

Be Patient With Yourself

There are many things that you want to do or accomplish but you may not be able to do them right away because of lack of knowledge or lack of resources. Be patient with yourself as you work toward your goals.

Be Patient With Others

It's easy to get frustrated when someone else isn't just like us and isn't doing what we want them to do. We can't always control others; we can only control ourselves. We can ask them to make changes but realize that it takes time for people to change their habits and behavior patterns. It takes time for people who have been hurt by others to trust again and let down their guard enough for love or friendship to grow between them again. Be patient with others as they work through their issues and problems so that they can become the people God meant them to be — His children who reflect His love in this world full of hate and sin!

10. Everything has a price. Financial wealth has a price. Saving. Good investment. Knowledge. Skills. If you want financial wealth, be willing to pay the price. Pay the price for a financially secure life.

The first step toward financial security is to set your goal. What do you want most? A beautiful house? A vacation home? Business capital? A college education for your children? The best way to reach your goal is to start saving now and invest wisely. But don't stop there: You must acquire knowledge and skills that will make you more valuable as an employee or entrepreneur so that you can earn more money in the future. Only then can you expect a higher net worth than ever before!

Remember that money isn't everything in life — but it is something! Without money, many of us would be unable to afford food or shelter or health care when we need it most; we would not be able to help out our friends and family members when they need assistance; we would not be able to retire with dignity; and we would not be able to give back by supporting charitable causes that are important to us personally.

If you're not where you'd like to be financially right now, don't give up hope! Instead, start saving more money today

About the author 

Jack Marbida is a husband to his wife Wene and a father of 2 little boys Isaac and Israel, he is a financial advisor, speaker, and writer who helps families be financially stable and grow their relationships. He works with families to help them reach their goals by teaching them about financial literacy and helping them develop a healthy relationship with money.

He has been featured in Sun Life Financials and others for his work as a financial coach. He is also the founder of Online Advisors Financial Education, which provides free educational content through blogs and videos.

Jack speaks at conferences across the Philippines on topics such as family finances, and personal and professional growth.  

You can contact Jack Marbida through his social media accounts or email him at papajackph@gmail.com.

Cheers!