Let’s face it… Money helps us run our life. We need money to spend on learning, living or having a certain lifestyle. We all need it in some way or the other but sometimes we fail to manage it the way we want, we fail to understand the importance of financial planning for our own survival. This book teaches you a very important lesson -You don’t need to be rich to get richer but you need to be disciplined to reach your financial goal. It’s an art and we all can manage with little bit of strategy and lot of common sense. So let’s deep dive into this gem to understand the process of managing our hard-earned money well.
Money management can be overwhelming for many while it may come across easily for some. However, this bestseller will give you a realistic view about how you should manage your money. The learnings shared in the book covers the authors experiences and include lessons from the game changing events such as ‘The Great Depression’ and ‘The Economic Crisis of 2008’. Interestingly, the chapters give refer to the winning strategies of great visionary leaders like Bill Gates, Warren Buffet or learnings from those like Rajat Gupta or Bernie Madoff. Each chapter takes you through certain back story to build the concept and link it to the chapters’ theme around the psychological method to help you make better financial decisions.
What does the book cover?
From a communication point of view, the book is very well structured with 20 lessons or chapters with actionable insights covering and describing important features of the ‘psychology of money’. The author has anecdotally compared the financial advice profession to medicine – both are highly complex professions and both know the odds of what tends to work and what might not. But it’s up to people how they want to apply it in their life or what result will come out of it, depending on the application of the advice.
- Luck and risk are both real and hard to identify – Don’t judge yourself or anyone if things get good or bad. Everyone’s perspective is valid, consider the differences that everybody has in their own life experiences and hence the decision they take. Explained beautifully with a real life story of Bill Gates and Kent Evans
- Save – one doesn’t need a reason to save. Save for unpredictable events. Typically your savings rate is driven by your ability to keep your lifestyle expectation in check
- Never Enough – Is there a limit to what enough entails. Enough doesn’t mean its little. It just means knowing when it’s time to stop taking risks that might harm you
What’s in it for me?
Everything! The book is much needed for most of us who believe that with better income we will be better in saving, which is absolutely not true. The book has guided me in taking certain steps which I would have not considered otherwise. The learnings of what went wrong is the centre point and knowing where we are headed to is the key.
This is a must read for all…and earlier the better! Don’t think twice before getting a copy of this bestseller. Every aspect related to psychology (emotions and nuances) is explained very well and with examples. Read this to help achieve your personal financial goals. It will help you ensure 2022 gets off to a good start! Better money management can be the much-needed new-year resolution for all of us…
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