The Psychology of Money

Review

A collection of twenty short chapters about the psychological and behavioural facets of investing. I think this book is a valuable accompaniment to other investing literature because it helps you to calibrate your expectations and perspectives around finance. Personally, I really liked the emphasis on uncertainty, long tails, endurance, room for error, and knowing the game you're playing. Housel also has a blog — I enjoyed these articles.

Saving is a hedge against life's inevitable ability to surprise the hell out of you at the worst possible moment.