Starting the new year with Morgan Housel's - The Psychology of Money is an excellent way to reset financial mindset and release the "mental clutter" of past mistakes.
Rather than focusing on complex formulas or stock picking, Housel explores the emotional and behavioral side of finance, making it a perfect guide for a "fresh start" in the New Year.
Housel argues that doing well with money is a "soft skill" where how you behave is far more important than what you know. This point you to follow 'Behavior Over Intelligence.'
The book emphasizes that "no one is crazy" - our past financial decisions were based on our unique life experiences at the time. Understanding this allows you to release guilt over old mistakes and start the new year with a clean slate, and release past clutter. A central lesson for a fresh start is learning to stop the "moving goalposts" of social comparison.
Recognizing when you have "enough" helps reduce financial anxiety and your focus on what truly brings happiness: control over your time. The book distinguishes between being "rich" (visible spending) and being "wealthy" (unspent assets and options). This shift in perspective is crucial for releasing the clutter of consumerism and building lasting security. Advocating "Wealth is Invisible".
Success often comes from staying in the game long enough for compounding to work. Housel advocates for a "survivalist" mindset - prioritizing being "financially unbreakable" over chasing high returns.
Reading this as the first book of the year allows me to replace rigid, often intimidating financial "to-dos" with a sustainable, flexible mindset. It is invited to be "reasonable" rather than "rational," acknowledging that the best financial plan is simply the one that one can actually stick to throughout the year.
It's a great first read for 2026.
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