The Psychology of Money Timeless Lessons on Wealth, Greed, and Happiness


Past a certain level of income, what you need is just



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Past a certain level of income, what you need is just
what sits below your ego.
Everyone needs the basics. Once they’re covered there’s
another level of comfortable basics, and past that there’s
basics that are both comfortable, entertaining, and
enlightening.
But spending beyond a pretty low level of materialism is
mostly a reflection of ego approaching income, a way to
spend money to show people that you have (or had) money.


Think of it like this, and one of the most powerful ways to
increase your savings isn’t to raise your income. It’s to raise
your humility.
When you define savings as the gap between your ego and
your income you realize why many people with decent
incomes save so little. It’s a daily struggle against instincts
to extend your peacock feathers to their outermost limits
and keep up with others doing the same.
People with enduring personal finance success—not
necessarily those with high incomes—tend to have a
propensity to not give a damn what others think about
them.

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