17 immortal lessons in the psychology of money that are never late

The Greek Stoic philosopher Epictetus once said, "Wealth is not in having large possessions, but in having few necessities." This remains of great importance in today's complex world of personal finance and investment.

Driven by consumerism, there is a constant push to gain more, which often leads to an endless cycle of destitution. This mindset can conflict with financial well-being, as the pursuit of property often exceeds its affordability, leading to debt and financial stress.

Here are some tips you can see, as they encourage a more thoughtful approach to our financial desires and decisions, and to think about what is really necessary for a fulfilling life, amid the noise and challenges of the contemporary financial landscape.

1.No one spends money really crazy:

No one really spends money madly, people just apply what they know and how they see the world. The way we grew up plays a big role in this. Research shows that childhood experiences with money can influence financial habits and behaviors in adulthood.

2.The outcome in life is not only about the effort expended:

Not every outcome in life is the result of effort alone; there are many other factors on the scene. It's complicated, and our actions don't always lead directly to a result. Economic studies show that luck and timing can play an important role in financial success, proving that it's not just about individual effort.

3.Enough means enough:

Life gets better when you know when to have enough. Wanting more and more can lead to regret, and comparing yourself to others is a never-ending struggle. It's okay to accept that you'll get less from others, and remember that constantly comparing oneself to others can reduce happiness and increase anxiety.

4. Stay rich:

To stay rich, you need a combination of careful and careful spending. While making money is often risky, optimistic, and proactive, preserving wealth requires avoiding risks and being more conservative. Most wealth is lost through risky investments or overspending, not from the initial way to earn it.

5.Long tail has a big effect:

The long tail here means the farthest end of the normal distribution curve of the results. These tails have a tremendous impact in finance, with a small number of events accounting for the majority of outcomes. Anything huge, profitable, famous, or influential is the result of a caudal event.

6. Real value of money:

The best reward money can offer you is control of your time, and the freedom to do the things you love. In other words, the highest form of wealth is to live life on your own terms.

7.No one is as impressed by your property as you are:

You are more fascinated by your possessions than by others. While people often boast of wealth, others usually don't like you because of it. In fact, focusing too much on physical possessions has detrimental effects, because it often does not strengthen our social relationships, nor our long-term personal happiness.

8.Wealth is what you don't see:

Real wealth is not always visible. We often measure wealth with visible goods such as cars, clothing, and homes. But real wealth lies in assets that are not being transformed into visible elements.

9. Saving is the gap between your ego and your income:

Building wealth doesn't depend on how much you earn, but on how much you save. Having a smaller ego can lead to greater wealth, because saving is basically the difference between your desires and your income. Spending less is easier when you are less interested in other people's opinions of you.

10. Confusing Capital Accumulation:

Warren Buffett earned $81.5 billion of his $84.5 billion fortune after turning 65. His success comes from investing, but the real key is time. To improve as an investor, focus on broadening your time horizon. In fact, longer investment periods can lead to compound returns, increasing wealth dramatically over time.

11.Wisdom is more important than rationality:

When it comes to financial decisions, it's better to be wise than to be completely rational. Focus on what makes you feel comfortable and brings you peace. Remember that investing is not just about numbers; it also has a social aspect that you should not overlook.

12.The only thing that will not change is the change itself:

Instead of using past events to predict the future, we should look at them as a reminder of our inability to predict what will come next. History is replete with unexpected events that dramatically changed financial markets and personal wealth, and highlighted the unpredictability of the future.

13. Having a margin of safety is key:

A margin of safety is essential in a world governed by probability, not certainty. Always allow yourself room for error and be prepared that things don't go as planned. People are bad predictors for themselves in the future, and what they want today may be different in the future.

14.Nothing is free:

Everything has a cost, even if it's not immediate enough to realize it. Often, the true price of things becomes clear only after they are committed to them and it is too late for change. You need to understand what the price of success is and be willing to pay that price. Hidden costs are often overlooked during decision-making, which are often emotional or time-based, but may significantly impact our satisfaction and well-being.

15. Do not follow others:

Personal financial strategies vary greatly and are often tailored to suit a person according to their risk tolerance, time horizons, and goals. Be careful about following financial advice that comes from people with different plans.

16.The temptation of pessimism:

Optimism sounds like a sales offer, and pessimism sounds like someone trying to help. The setbacks are immediate and noticeable, while progress is gradual and less pronounced. Formulating a pessimistic narrative is simpler, as the elements are usually current and more interesting.

17. Be alert to stories:

Stories can be compelling and impactful, and the strongest force in the economy ever. When the stakes are high, people are often willing to believe anything supported by public narratives and sentiments, but it's important to check their accuracy and relevance to your condition.