You Can’t Make Financial Predictions Based on the Past

You Can’t Make Financial Predictions Based on the Past

Do you look to history when trying to make financial decisions? Why is trying to make financial predictions based on past events a terrible idea? In his book The Psychology of Money, Morgan Housel says that many people will study past events in order to make financial predictions. However, Housel explains, this strategy doesn’t work because history is a series of unpredictable events, and studying it will not help you predict the future of finances. Here’s why you can’t use the past to make financial predictions.

Manufacturing Consent: Quotes to Think About

Manufacturing Consent: Quotes to Think About

What are the top Manufacturing Consent quotes? How can these passages change how you consume media? In the 1988 book Manufacturing Consent, Chomsky and Herman analyze how mainstream media is indirectly censored by societal elites. This book is even more relevant today with the increase in social media outlets and news sources. Here are some of Chomsky and Herman’s best quotes from the book.

Debates Over the Ten-Thousand-Hour Rule

Debates Over the Ten-Thousand-Hour Rule

What is the ten-thousand-hour rule? Who first came up with the rule, and what is the research behind it? The ten-thousand-hour rule basically says that you need to practice a skill for at least ten thousand hours before you can be considered an expert. After Malcolm Gladwell published these findings in his book Outliers, there have been a number of criticisms. Here’s why the ten-thousand-hour rule doesn’t hold up.

Follow Your Personal Financial Goals—Not the Herd

Follow Your Personal Financial Goals—Not the Herd

Where do you see yourself in the future financially? Do you have a financial goal you’re striving for? According to Morgan Housel’s book The Psychology of Money, you should know your personal financial goals, otherwise, you may find yourself making decisions that don’t align with your goals. For example, short-selling stocks may work for some people, but it wouldn’t work with a long-term compounding plan. Here’s why it’s important to follow your own financial goals.

How Much Money Is Enough?—Greed Is a Fine Line

How Much Money Is Enough?—Greed Is a Fine Line

How much money is “enough”? Is there a point at which you should stop taking risks and enjoy what you have? People who say “money doesn’t buy happiness” are wrong—money can make you happier, up to a point. However, once you make enough to live a comfortable life, money can become a trap. Some people become so greedy in their desire to keep making more that they risk losing everything they have. Here’s how to be happy with having “enough.”

The Psychology Behind Mind Games: Case Study

The Psychology Behind Mind Games: Case Study

How can you tell someone is playing a mind game on you? What are the different types of mind games people play? Mind game psychology is complex because there are many different types of games people play on each other. In his book Games People Play, psychiatrist Eric Berne provides a framework for analyzing mind games and understanding why people get tangled up in negative interactions. In this article, you’ll learn how to analyze ming games according to Eric Berne’s Transactional Analysis framework.

How the Elite Are Censoring Media and News

How the Elite Are Censoring Media and News

Does the United States truly practice the freedom of the press? Who decides what gets published and what doesn’t? Despite the fact that the United States prides itself on having freedom of the press and freedom of speech, the authors of Manufacturing Consent argue that the elite class is censoring media. There are many ways they do this: using political power, limiting competition, pulling funding, etc. Learn why Chomsky and Herman believe the media is being indirectly censored.

What Is the Difference Between Rich and Wealthy?

What Is the Difference Between Rich and Wealthy?

Is being rich and being wealthy the same thing? If not, then what is the difference between rich and wealthy? Contrary to popular belief, being rich and being wealthy is not the same thing. Being wealthy means you have a lot of money in the bank while being rich means you have a high income. But, just because you have a high income does not mean that you use your money wisely—money can disappear as fast as it appears if you aren’t responsible. Here is why making a lot of money doesn’t mean you’re wealthy.

Transactional Analysis: Games, Exchanges, Ego States

Transactional Analysis: Games, Exchanges, Ego States

What is a transaction in the context of Eric Berne’s Transactional Analysis? What are the three ego states? “Transactions” are Eric Berne’s “basic unit” of social interaction. We gain social recognition through transactions, and we can analyze transactions by looking at the ego states that are involved (the parent, the adult, and the child). In this article, we’ll define transactions and cover the main types of games in Transactional Analysis.

Money Flexing: Why You Shouldn’t Flash Your Wealth

Money Flexing: Why You Shouldn’t Flash Your Wealth

Can money buy respect? Do you respect people who have luxurious cars or expensive houses? According to Morgan Housel, the author of The Psychology of Money, money flexing with status symbols won’t buy you respect. People may be in awe of your sports car or your Rolex, but they’re admiring the item, not you. Here’s why you should only buy something expensive if it’s for you, not to flex on others.