kajou’s Reviews > The Psychology of Money: Timeless Lessons on Wealth, Greed, and Happiness > Status Update

“Only 27% of college grads have a job related to their major, according to the Federal Reserve.46 Twenty-nine percent of stay-at-home parents have a college degree.47”

“The ability to do what you want, when you want, for as long as you want, has an infinite ROI.”

“But if something has 95% odds of being right, the 5% odds of being wrong means you will almost certainly experience the downside at some point in your life. And if the cost of the downside is ruin, the upside the other 95% of the time likely isn’t worth the risk, no matter how appealing it looks.”

“I assume the future returns I’ll earn in my lifetime will be ⅓ lower than the historic average. So I save more than I would if I assumed the future will resemble the past. It’s my margin of safety. The future may be worse than ⅓ lower than the past, but no margin of safety offers a 100% guarantee.”

“The pundit who speaks in unshakable certainties will gain a larger following than the one who says “We can’t know for sure,” and speaks in probabilities.”

“But people underestimate the need for room for error in almost everything they do that involves money”