Morgan Housel is the top finance author of the 2020s:

• The Psychology of Money sold 5M+ copies

• Named a top 50 market influencer

• Columnist at The Motley Fool

Here are 5 major insights from his book that will help you invest like a pro:

1. Relative Wealth

Your absolute wealth doesn't matter.

At least, not when it comes to how rich you feel.

Personal satisfaction and well-being are heavily influenced by 2 factors:

• Your wealth compared to your past self

• Your wealth compared to your peers

The sense that you are progressing and building wealth will make you feel wealthier than any specific number.

2. Financial Habits

Around 70% of lottery winners go bankrupt within a few years.

Getting rich quick is an illusion, you need the character necessary to keep your money.

Wealth is a habit. Your temperament, mindset, and behavior are critical for building your portfolio.

3. Time Horizons

Do you let your short-term emotions interfere with your long-term goals?

If so, you don't grasp the long-game nature of investing.

Most fortunes are built over decades.

To achieve lasting wealth, you need to set specific targets with realistic timeframes.

4. Risk & Uncertainty

Risk management isn't only assessing probability.

It's about emotional control and understanding negative potential consequences.

Most people underestimate the likelihood of a bad outcome.

As an investor, you must invest based on data and rationality.

5. Misleading Narratives

People are drawn to and influenced by stories about money.

These narratives shape your perceptions, beliefs, and decisions.

The major thing to realize is that these stories hold power over you even if they are based on false or misleading information.

There you have it!

5 major insights from one of the most popular finance books on the market.