The Psychology of Money Summary | Why Behavior Beats Intelligence

This summary of Morgan Housel’s The Psychology of Money explores why financial success depends more on behavioral skills than raw intelligence or formal education. Through real-life stories—like Ronald Read, a janitor who quietly built wealth, and Rajat Gupta, a powerful executive who lost everything—Housel shows how emotions, ego, and greed shape outcomes more than spreadsheets ever will.

The book also reveals how our unique life experiences—where and when we grow up—deeply influence our financial decisions and risk tolerance, often beyond rational logic. Housel argues that lasting wealth comes from saving consistently, valuing independence, and building in room for error, while also understanding the counterintuitive power of compounding.

Ultimately, The Psychology of Money is a timeless reminder that mastering money is less about what you know, and more about how you behave.