The Psychology of Money

Since being published in 2020, Housel’s “The Psychology of Money” has become a bestseller in the financial self-help genre, selling over two million copies.

This book’s approach to money advice differs from that of many other classics in the genre. For example, The Science of Getting Rich by Wallace D. Wattles and The Richest Man in Babylon by George Samuel Clason both urge the reader to follow specific rules, which the authors claim are guaranteed to increase their wealth. Wattles insists that people must be creative and not competitive, while Clason teaches that everyone should save 10% of their income and make consistent investments with other funds.

Rather than advocate for specific investment strategies, stock holdings, or savings rates, Housel keeps his advice broad and flexible. Indeed, a main theme of his work is that everyone has a different relationship with money and a different foundation for their personal short- or long-term plans. Housel explicitly acknowledges that there is no one-size-fits-all guide for finance that will be appropriate for everyone. He persistently questions the wisdom of generic advice, arguing that different people have different priorities and goals, especially at different stages of life.