The Psychology of Money: Timeless lessons on wealth, greed, and happiness

few things that are important to that strategy’s success.

No matter how hard you try at investing you won’t do well if you miss the two or three things that move the needle in your strategy. The reverse is true. Simple investment strategies can work great as long as they capture the

there is little correlation between investment effort and investment results.

We invest money from every paycheck into these index funds—a combination of U.S. and international stocks. There’s no set goal—it’s just whatever is leftover after we spend. We max out retirement accounts in the same funds, and contribute to our kids’ 529 college savings plans. And that’s about it. Effectively all of our net worth is a house, a che

Every investor should pick a strategy that has the highest odds of successfully meeting their goals. And I think for most investors, dollar-cost averaging into a low-cost index fund will provide the highest odds of long-term success.

those. I’m saving for a world where curveballs are more common than we expect.

We do it because cash is the oxygen of independence, and—more importantly—we never want to be forced to sell the stocks we own. We

“True success is exiting some rat race to modulate one’s activities for peace of mind.”

Comfortably living below what you can afford, without much desire for more, removes a tremendous amount of social pressure that many people in the modern first world subject themselves