Book Review: The Psychology of Money by Morgan Housel — What Moms Must Know About Wealth, Happiness, and \"Enough\"

Hello, mama warriors! It's Viktoria here, your money-savvy mom-friend who’s learned the ropes of family financial management by digging deep into books, seminars, and lessons from the best in the business. From Tony Robbins to Dave Ramsey, and of course, one of my personal favorites, Morgan Housel. And today, I’m kicking off something new and exciting on the blog—book reviews! 🎉

If there’s one book that’s totally changed how I think about money and investing, it’s The Psychology of Money* by Morgan Housel. And I know it will do the same for you. So buckle up, because I’m about to dive into this mind-shifting masterpiece!

One of the first things Housel makes crystal clear is that money isn’t about math. It’s about how you behave around it. Girl, let me tell you—this hit hard! As moms, we often think the key to financial success is having more spreadsheets or figuring out how to budget down to the last cent. But Housel shows us that no matter how many fancy tools we have, if we don’t understand our emotions and behaviors around money, we’ll keep making the same mistakes.

He talks about how even the smartest people with PhDs in finance can go broke because it’s not about intelligence—it’s about behavior, habits, and understanding our relationship with money. As moms, this is a game-changer. Our financial health isn't just about earning more or spending less; it's about learning to manage the ups and downs of money with grace and confidence.

Now, let me share one of my absolute favorite parts of this book—Housel recounts a conversation between two legendary writers, Kurt Vonnegut and Joseph Heller. They were at a fancy party hosted by a super wealthy hedge fund manager, and Vonnegut points out that the host had made more money in a single day than Heller earned from his entire career with his novel Catch-22. To that, Heller responds: "Yes, but I have something he will never have… enough."

Moms, this is it. This is the wisdom we need to tattoo on our hearts. We live in a world that tells us to constantly chase more—more money, more things, more status—but Heller’s reply reminds us that happiness doesn’t come from having more; it comes from knowing when you have enough.

This idea is so freeing, especially as moms who are juggling so many responsibilities. It takes the pressure off trying to outdo ourselves or others. The real secret to wealth isn't accumulating massive amounts of money. It's feeling content with what you have and recognizing that you have enough. This lesson resonated with me as I teach my kids about finances too. It’s not just about growing wealth, but about fostering a healthy relationship with it—one where we can confidently say, “I have enough.”

If there’s one financial concept that I want every mom to understand, it’s compounding. Housel describes it as the magic behind wealth-building, and I couldn’t agree more. Imagine planting a tree today that will not only grow but give you fruit for years to come. That’s what compound interest does to your money.

But here’s the kicker—compounding doesn’t just happen with your investments; it works with your habits too. The small things we do daily, whether it’s saving a few dollars here or cutting back on an unnecessary expense there, compound into significant gains over time.

As a mom, I know how tempting it is to think, “Ugh, what’s the point of saving $10 when there are so many bigger expenses?” But Housel teaches us that wealth is built not by a few big moves but by many small, consistent ones. You don’t need to be an investment expert to start compounding today—just make smart, steady choices over time.

We live in a world where people love to show off their new car, house, or vacation photos. But Housel makes an important point—true wealth is what you don’t see. It’s the money that stays in the bank, the investments quietly growing in your portfolio, or the financial cushion you’ve built for rainy days.

This really hit home for me. As moms, it’s easy to feel like we’re falling behind when we see others buying new things or splurging on extravagant experiences. But here’s the reality: wealth isn’t what’s on display. It’s what’s happening behind the scenes, out of sight. The real flex? Meeting your financial needs and being financially secure enough to sleep well at night.

Housel emphasizes that saving money is one of the best moves we can make. And not just for emergencies, but for peace of mind. This lesson has shifted how I see family finances. Now, when I save or invest, I don’t see it as a sacrifice—I see it as an act of love for my family’s future.

Lastly, one of the core messages of The Psychology of Money is the idea that wealth ultimately buys you one thing: control over your time. And let’s be honest, isn’t that what we all want as moms?

Housel argues that the real goal of money shouldn’t be to buy more stuff but to buy more freedom. Whether that’s having the freedom to take time off work when our kids need us, the ability to travel, or even just the peace of knowing we’re prepared for unexpected life events—that is what money should do for us.

I think about this all the time now. When I set aside money for savings or investments, I’m not just buying financial security. I’m buying freedom for my family and me. The ability to make decisions not out of financial stress, but from a place of empowerment.

There’s so much more I could say about this book because every chapter is packed with wisdom. But here’s the bottom line: The Psychology of Money is one of those rare books that doesn’t just teach you about money—it teaches you about life.

As moms, we have unique financial responsibilities. We’re managing not just our own money, but the future of our families. And this book helps us do that with grace, wisdom, and most importantly, understanding.

So, if you’ve been feeling overwhelmed by finances, The Psychology of Money is the place to start. It will change how you think about wealth, happiness, and what it truly means to have enough.

Now it’s your turn, gorgeous! Have you already read the book or do you plan to? What are your key takeaways? Share your thoughts with us in our Facebook group!

Until next time, keep mastering your money game with ease and grace, like a dame!

Hugs,

~Viki