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 Welcome back to our "Psychology of Money" series! In today's video, we'll be summarizing Chapter 1 of the book, "The Psychology of Money," titled "No Luck & Risk." Get ready for some fascinating insights into how luck and risk influence our financial decisions. But before we dive in, make sure to hit that subscribe button and the notification bell so you won't miss any of our future episodes. "No Luck & Risk. In this chapter, Daniel Crosby introduces the concept of luck and emphasizes its significant impact on our financial outcomes. He argues that luck, both good and bad, plays a substantial role in our financial lives. Crosby explains how luck can manifest in various ways, from being born into wealth to stumbling upon a fortunate opportunity. These strokes of luck can greatly influence our financial situation, often beyond our control. Additionally, Crosby explores the concept of risk and its relationship to financial decision-m...

  The intersection of psychology and personal finance is explored in the book "The Psychology of Money" by Morgan Housel. The book makes the case that money involves behavior and mindset in addition to maths. Housel shares insights into the financial world and the psychological biases that influence how we handle money using his experience as a financial writer and analyst. Five sections make up the book, each of which focuses on a different area of investing and personal finance. Housel discusses the value of saving money in the first section. He contends that a lot of people have trouble saving money because they are unaware of the true cost of their purchases. He uses the purchase of a new car as an example, which may appear affordable when comparing the monthly payment with the long-term cost of interest and depreciation, but is actually much more expensive. Housel also discusses the strength of compound interest, which he refers to as the world's eighth wonder. He pr...