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

“A takeaway here is that few things matter more with money than understanding your own time horizon and not being persuaded by the actions and behaviors of people playing different games than you are.”

“But if you view the admission fee as a fine, you’ll never enjoy the magic.

Find the price, then pay it.”

“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.”