Latest news with #ThePsychologyofMoney
USA Today
2 days ago
- Business
- USA Today
Being rich and being wealthy are not the same thing. What's the difference?
Being rich and being wealthy are not the same thing. What's the difference? Show Caption Hide Caption The wealth gap: $400 billion versus the median American net worth The world's richest person had a net worth of $400 billion. This is the visual comparison of the U.S. wealth gap. One of the unique aspects of my job as a family and consumer sciences educator is the coaching I'm able to conduct with individuals about personal finance and consumer behavior. My conversations rarely begin with the components of a good budget. Instead, we focus on the relationship with money, including attitudes and habits. I'm always looking for more resources about why people do what they do with money that will help me in my coaching conversations. And, admittedly, in my own quest to be wise with my finances. I recently read The Psychology of Money (subtitle — Timeless lessons on wealth, greed and happiness) by Morgan Housel. Housel was a columnist for The Wall Street Journal. I found myself nodding my head in agreement with so many of the themes of the short, yet thought-provoking chapters. Here are some of my key takeaways from the book. Wealth is what you don't see One of my favorite lines in the book is 'When most people say they want to be a millionaire, what they might actually mean is 'I'd like to spend a million dollars.' And that is literally the opposite of being a millionaire.' Wealth is financial assets that haven't been converted into stuff we can see. It is the cars, jewelry, clothes, you name the item, not purchased. There is a difference between being rich and being wealthy. Rich has to do with current income. Wealth is income not spent. I have long appreciated the research by Barbara O'Neil at Rutgers University about the connections between health and wealth. Americans often overestimate the number of calories burned in a workout and underestimate the number of calories consumed in a meal. In case you missed it: Millennials and Gen X want to share wealth now. Boomers will wait until they're dead. Several years ago, a colleague pestered my husband about his Mountain Dew habit. One day, David realized it takes about 20 minutes of running to burn off the calories in just one can of pop. It just wasn't worth it anymore, so he completely quit drinking soda. The same pattern is true with wealth. Many people overestimate their income and underestimate how much they are spending. We are quickly losing the last generation that had the general mindset of saving money. Because we often do not witness the restraint and self-control of not spending money, we are raising generations that associate having money with spending that money. Controlling your time is the highest dividend money pays In 2019, a poll of more than 150,000 people across 140 countries revealed that Americans felt more worry and more stress than people in other places. We are the richest nation in the world. In the history of the world. But nothing indicates we are happier as a result. Research suggests having control over our time — to do what we want, when we want, with the people we want — is the lifestyle variable that makes people the happiest. Ironically, in this era of constant communication and connection, we tend to feel less in control of our time than ever before. And thus, less happy. Gerontologist Karl Pillemer interviewed 1,000 elderly Americans for life lessons and advice. They did not suggest working as hard as possible to buy the things you want or to try to be as wealthy as the people around you, or to choose work based on future earning power. Not even close. They valued spending quality, unstructured time with friends and family and being part of something bigger than themselves. How are you doing in your relationship with money these days? Today, I'll leave you with this quote from Warren Buffett: 'Someone is sitting in the shade today because someone planted a tree a long time ago.' Emily Marrison is an OSU Extension Family & Consumer Sciences Educator and may be reached at 740-622-2265 or marrison.12@
Emirates Woman
25-04-2025
- Business
- Emirates Woman
Friday book club: Ultimate reads on investing and wealth building for the modern woman
Welcome back to Emirates Woman's Friday Book Club—your go-to source for books that don't just inspire, but truly week, we're focusing on the transformative power of investing and wealth building—essential skills for any woman looking to secure her financial future and create lasting prosperity. In today's world, financial literacy is more than just balancing a budget—it's about understanding how to make your money work for you. Whether you're starting with your first investment or looking to expand your portfolio, these books will equip you with the knowledge, strategies, and mindset shifts needed to grow your wealth with intention. From timeless classics to modern must-reads, each selection offers unique insights into building financial freedom on your own terms. From timeless classics to modern must-reads, we've curated a selection that demystifies the psychology of money, challenges outdated financial myths, and delivers actionable strategies—whether you're starting with your first investment or scaling a portfolio. These aren't just books about numbers; they're about rewiring your mindset, spotting opportunities, and making your money work as hard as you do. So, grab your notebook (or your favorite highlighter), and let's dive into the reads that will redefine your relationship with wealth. Here's your curated reading list for mastering the art of investing and wealth creation Think and Grow Rich – Napoleon Hill This legendary book reveals the psychological blueprint behind extraordinary wealth. Hill studied 500+ millionaires to identify universal success principles that anyone can apply. Learn how to harness the power of your subconscious mind, develop unshakable purpose, and attract wealth through the 'Master Mind' principle. More than just money, this book teaches how to cultivate true abundance in all areas of life. Order it here. Rich Dad Poor Dad – Robert Kiyosaki Kiyosaki's groundbreaking book challenges everything you thought you knew about money. Through contrasting lessons from his highly-educated but financially-struggling father ('poor dad') and his best friend's wealthy entrepreneur father ('rich dad'), you'll learn why the rich don't work for money—they make money work for them. Discover why your home isn't an asset, how to spot real investment opportunities, and why financial education matters more than job security. Order it here. The Millionaire Fastlane – MJ DeMarco DeMarco's radical approach shatters conventional wisdom about getting rich slowly. Discover why the traditional 'go to school, get a job, save for retirement' path keeps most people financially stagnant. Learn how to identify lucrative business opportunities, create systems that generate passive income, and accelerate your journey to financial freedom. This book is a wake-up call for anyone ready to escape the rat race. Order it here. The Psychology of Money – Morgan Housel Housel masterfully explores the emotional side of financial decisions through 19 insightful stories. Learn why two people with the same income can have completely different financial outcomes, how luck and risk influence success, and why wealth is what you don't see. This book will change how you think about saving, spending, and investing, helping you develop healthier money habits that last a lifetime. Order it here. Rich Woman – Kim Kiyosaki Written specifically for women, this empowering guide addresses the unique financial challenges we face. Kim Kiyosaki shares her personal journey from financial insecurity to wealth, offering practical steps to overcome money fears and build confidence. Learn why women often make better investors than men, how to start investing with small amounts, and strategies for creating multiple income streams that provide true financial independence. Order it here. You Are a Badass at Making Money – Jen Sincero Sincero's hilarious, no-filter pep talk tackles the fears and excuses keeping you broke. With sass and actionable steps, she shows how to rewrite your 'money story,' attract opportunities, and finally earn what you're worth. Order it here. I Will Teach You to Be Rich – Ramit Sethi Sethi's no-nonsense guide makes personal finance simple and actionable. His 6-week program covers everything from automating your finances to intelligent investing to guilt-free spending. Learn how to negotiate better salaries, optimize credit cards, and invest in low-cost index funds—all while still enjoying the lifestyle you want. This book proves you don't need to be a financial expert to build wealth, just consistently apply smart systems. Order it here. Why These Books Matter Investing isn't just about stocks and real estate—it's about investing in your financial education. These books provide the foundation you need to: Develop an investor's mindset Avoid common wealth-building mistakes Create multiple income streams Make confident financial decisions Did you read our last week's guide to morning routines? Friday book club: The ultimate guide to morning routines of high achieving women Stay tuned for next week's Friday Book Club, where we'll explore another must-read category for the modern woman. – For more on luxury lifestyle, news, fashion and beauty follow Emirates Woman on Facebook and Instagram Images: Instagram & Feature Image: Pinterest
Yahoo
12-04-2025
- Business
- Yahoo
3 Ways to Keep Your Portfolio Safe During Tariff Volatility
Tariff volatility continues to rattle the stock market with the major indexes swinging several percentage points in recent sessions. The S&P 500 (SNPINDEX: ^GSPC) and Nasdaq Composite (NASDAQINDEX: ^IXIC) both fell into bear market territory (a drawdown of at least 20% from a recent high) only to bounce out of it days later after President Trump reversed course with many of his tariffs. This volatility can be challenging to handle, but there are ways to prevail. Here are some ideas to consider now. It's human nature to want to take action in response to a threat. And seeing a portfolio's balance plunge as equity prices flash red can feel like a threat to your financial stability. As counterintuitive as it may seem, the best course of action when faced with market volatility can be to do nothing. In other words, avoid a fight (trading your way out of a bad situation) or flight (selling and running for the exits) response. Your portfolio reflects the amalgamation of past decisions. When volatility is running high, it can be helpful to pause and reflect on why you bought a stock in the first place. The stock price may have fallen in the last week in lockstep with the broader market, but that price action likely has nothing to do with the long-term investment thesis. Long-term investing starts with the understanding that you should be buying a stock based on where it will be several years from now, not where it is today. The current stock market sell-off is a response to changing near-term forecasts. Many analyst targets had the S&P 500 closing higher on the year, but those gains seem unlikely if tariffs throw a wrench in supply chains and profits. So, short-term investors and Wall Street firms may slash forecasts and overreact to near-term projections. At times like this, I find it helpful to lean on a lesson I learned from The Psychology of Money, written by Morgan Housel. In the book, Housel describes the stock market as a field upon which many games are simultaneously being played. You have short-term traders and long-term investors; institutions and retail investors. The point is that not every dollar invested in a stock has the same motive. Folks who ride a stock higher to make a quick buck may be the same ones who dump the stock the second there's an inkling of newfound risk. Meanwhile, folks who have been in stock for several years or decades are less likely to have a knee-jerk reaction to any single piece of news. Over the long term, a stock price moves based on fundamentals, but in the near term, it can merely reflect changes in sentiment by speculative traders rather than investors. Accepting that different games are being played on the field and how they all feed into a stock's price at any given time can help you filter out the noise and understand that sometimes, price action has little to do with the long-term returns a company can offer. Outside-the-box thinking can lead to finding hidden gem companies at a great value. But there's no extra credit in the stock market for coming up with a brilliant idea no one has ever thought of. In fact, sometimes, the best ideas are hiding in plain sight. Well-run, financially sound companies like Apple (NASDAQ: AAPL) and Nvidia (NASDAQ: NVDA) have seen their share prices plummet. Both stocks are down over 15% year to date as of this writing. It may seem too obvious to buy shares of two of the most valuable companies in the world on sale, but there's no need to discount an investment idea just because it is simple. Apple has been crushed because of its dependence on China. While international exposure is normally an advantage because it adds diversification, tariffs would make it a weakness because Apple's supply chain depends on manufacturing in Asian countries like China, India, Japan, South Korea, Taiwan, and Vietnam. In the four trading sessions following President Trump's tariff announcement, Apple stock fell a staggering 23% as investors faced the grim reality that Apple's margins could tumble if costs increase due to tariffs. Nvidia is in a league of its own when it comes to technological prowess in designing graphics processing units for artificial intelligence (AI) applications. However, Nvidia depends on its biggest customers -- companies like Amazon, Microsoft, Alphabet, Meta Platforms, and Apple -- to spend big bucks on AI. An economic slowdown or recession could lead to a pullback in capital spending from these key customers, leading to a slowdown in growth. What's more, tariffs could increase Nvidia's costs and further compress margins. If tariffs stick around, the near-term outlook for companies like Apple and Nvidia will be undeniably weaker than it was just a few weeks ago. But both companies have incredibly strong balance sheets, industry-leading products, high margins, and experienced leadership -- they should be able to adjust and deliver profits even if tariffs persist. Apple and Nvidia are two of the biggest names in the stock market and popular picks for any investor. And amid the current uncertainty, they're also excellent examples of beaten-down growth stocks that are even more attractive buys now. In the moment, it's easy to get swept away by narratives that make it seem like the entire market is in dire straits. But oftentimes, swings in stock prices can be disconnected from a company's true value. The pandemic was an excellent example of why a company's value shouldn't necessarily change just because a few quarters of earnings are down, especially if the business has the means to endure an economic slowdown. Volatility is the price of admission for unlocking the power of compounding wealth in the stock market, so staying even-keeled during times like this is paramount. Before you buy stock in S&P 500 Index, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and S&P 500 Index wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $509,884!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $700,739!* Now, it's worth noting Stock Advisor's total average return is 820% — a market-crushing outperformance compared to 158% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of April 5, 2025 John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Daniel Foelber has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Meta Platforms, Microsoft, and Nvidia. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy. 3 Ways to Keep Your Portfolio Safe During Tariff Volatility was originally published by The Motley Fool
