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

Our modern financial system is relatively new. It has also been hit with many "black swan" spikes. The concept of "retirement" was unknown just a few generations ago. People worked until they couldn't work anymore. Today people often long for the days past, without fully comprehending everything that would entail. 

Psychology of Money takes an ultra-wide view of the economy and money. Many of the poor decisions that are made with money result from viewing things too closely. We may want a nice car as a status symbol. Other people will recognize the nice car - but are less likely to notice the person driving it. Similarly, jumping in the stock market because everyone else is may be inappropriate - especially if we are buying for the long haul while the market is being moved by day traders.

People that get upset with the system may respond with movements like the Tea Party or Occupy Wall Street. They are from opposite sides of the political spectrum, yet feel "excluded."

For advice, the author advocates understanding yourself and your goals. Just because other people are doing things does not mean you should - especially if you have different goals and time horizons. Luck plays a huge role in short term investment results. A longer time horizon smooths out the results.  A margin of safety is also valuable. You may not be able to predict what can happen, but you can have the safety to respond if your investments lose value.