Applied to Software Engineering.
- Wealth is What You Don't See:
Wealth isn't about the luxury items you can buy but rather the assets you accumulate and don't spend.
In software terms, it is about the skills you have, not the hardware you can buy.
- Luck and Risk are siblings
Bill Gates went to one of the only high schools in the world that had a computer.
Like any financial investment, projects, and career decisions have elements of risk and luck.
Invest in being ready when that luck passes in front of you; put effort into it. Bill did it. 😉
- The Importance of Saving
It is not how much you earn but also how much you save.
Saving money is important for financial health, aiming for the long term.
It's the same thing as reducing technical debt for the long-term health of your projects.
- The Seduction of Pessimism
Pessimism sounds smarter than optimism, which could be true in finance and technology.
Yet, optimism has paid off in the long run.
How many cool (and money-making) projects have started with a single idea and a lot of optimism?
- The Influence of Social Proof
Humans are influenced by the behavior of others, especially in financial decisions.
Developers have hype around new frameworks, languages, or practices.
Decide based on your own research and judgment rather than just following the crowd.
- The Difference Between Getting Wealthy and Staying Wealthy
Getting wealthy might be about taking risks and opportunities. Staying wealthy involves humility, frugality, and avoiding overreach.
Career growth requires steady learning and skills to adapt. But also knowing when to take risks and jump to new opportunities.
- Freedom and Control Over Your Time
The highest form of wealth is having control over your time.
Automating as much as you can will save you time.
Aim not just for financial rewards but also autonomy and the flexibility to work.
The ultimate takeaway?
True wealth comes from the unseen investments we make in ourselves:
- our skills
- our approach to challenges
- and some opportunities
Stay wealthy!
This book is definitely now on my list! You really made me stop and think about a few things here! I used to think that the more money I made, the richer I was, however in reality I was poorer! Not just financially, as I wasn't looking after the money that I made but also in life as I was working all hours to try and earn more and more. I followed the story that the harder you work the more you will make. I now follow the adage, work smarter not harder and although not financially rich (yet) I am in fact rich in all other areas of my life!
+100
+100^2
Very informative! Thanks for sharing.
Lovely! I love how you drew connections between these lessons and your own context. And your takeaways are concise, yet profound
Great book, I actually read his follow up "Same As Ever" and liked it more. That may be because a lot of the same points are made/built on, and I read it first/before the Psychology of Money. I'd recommend it. I picked it up after hearing him speak on the Bankless podcast a while back. Forewarning they are big ETH shills, so prepare for that but Morgan Housel is a smart guy and well spoken.
Nice, I should definitely take some time to read that book.
Thank you for this brief summary.