The Psychology of Money by Morgan Housel is a captivating exploration of financial decision-making through the lenses of history and psychology. Here are five takeaways from the book:
Financial Success Is Not About Formal Education or High Income: Housel contrasts two individuals: Ronald Read, an uneducated janitor who invested wisely and left millions in his will, and Richard Fuscone, a finance professional who lost everything due to overspending during the 2008 financial crisis. The lesson? Financial success depends more on **soft skills**—how we manage our psychology and emotions—than technical financial expertise.
Understanding Our Biases and Emotions: Our backgrounds and childhood experiences shape our perception of money, risk, and financial management. Recognising our biases and emotional impulses is crucial for making rational decisions about money.
Long-Term Thinking and Patience: Housel recommends holding long-term diversified stock portfolios and allowing them to compound over time. Patience pays off; avoid chasing short-term gains and focus on the big picture.
Ego and Humility in Finance: Ego-driven spending on status symbols can hinder financial success. Humility and a wary attitude toward the future are essential for making sound financial choices.
Margin for Error and Saving for the Future: Always operate with a margin for error—unexpected events happen. Save consistently for the future, even if it’s a small amount. Compound interest works wonders over time.
The Psychology of Money emphasises that financial well-being is not just about numbers; it’s about understanding ourselves, managing emotions, and making thoughtful choices.
We’ll come back to Visual Studio Code later but first lets set everything up in the VM. We need to install aws-cli which I want to use with SSO (hence why we installed Mantic).
You can get the IP address from multipass list, then in Code add a new SSH connection using ubuntu@<ip>:
Accept the various options presented and you’re there!
Bootstrapping provisions resources in your environment such as an Amazon Simple Storage Service (Amazon S3) bucket for storing files and AWS Identity and Access Management (IAM) roles that grant permissions needed to perform deployments. These resources get provisioned in an AWS CloudFormation stack, called the bootstrap stack. It is usually named CDKToolkit. Like any AWS CloudFormation stack, it will appear in the AWS CloudFormation console of your environment once it has been deployed. ↩︎