New Delhi, Sept. 13 -- Your salary has increased, yet saving still feels difficult. A friend earns less but seems more financially secure. Why does this happen?

Morgan Housel's The Psychology of Money, released in September 2020, explores how behaviour shapes financial decisions. Knowing calculations helps. But patience, fear and habits also influence money choices. Its lessons apply to situations ranging from shopping decisions to retirement planning.

Here are 5 ideas from the book, explained through examples.

Understanding complicated financial terms does not make someone good with money. A knowledgeable person can still overspend, borrow heavily or panic during market falls. Meanwhile, someone with basic knowledge may save regularly...