IN A NUTSHELL: In general, your financial situation is not determined by what you earn or what you know, but by what you do with your money.
There’s no shortage of information about personal finances. Most of us know we have to save for retirement, have an emergency fund and avoid debt… but often we don’t do these things.
Why not?
“…financial success is not a hard science. It is a soft skill, where how you behave is more important than what you know,” writes Morgan Housel in his book The Psychology of Money.
Housel argues that finance, although it is often grouped with maths and physics and science, is not guided by laws but rather by people’s behaviour. Finance, says Housel, is more like a social science, like psychology and history.
What does that mean for you? To change your financial situation, you have to change your habits and how you think about money. This video explains five steps you can take to change your money mindset.
Further reading
Here’s your finance checklist
Sources
Manage your money resources
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