Review By Myra Salzer
This book was recommended to me by a valued client. As you know, most of TWC’s clients are inheritors of substantial wealth. Funny enough, this client is not an inheritor, but a wealth creator. This client spent many years working and growing businesses, taking 100% responsibility for the results (the good, the bad, and the ugly), and came out on top! Nonetheless, the messaging in The Psychology of Money applies to anyone who has a desire to be financially free.
This is not a technical, how-to-analyze-investments book, but rather a how-to-live book. It puts financial resources into perspective by illustrating how one’s generational experience of wealth heavily anchors one’s relationship with their wealth. It also puts wealth into perspective by demonstrating how nothing is ever as good or as bad as it seems.
The following are some highlights, which I am copying directly from the book:
- There are a million ways to get wealthy and plenty of books on how to do so. But there’s only one way to stay wealthy: some combination of frugality and paranoia.
- The ability to do what you want, when you want, with who you want, for as long as you want, is priceless. It is the highest dividend money pays.
- It’s not hard to spot rich people. They often go out of their way to make themselves known. But wealth is hidden.
- Things that have never happened before, happen all the time.
- The most common plot of economic history is the role of surprises.
- “Risk is what’s left when you think you thought of everything.” – Carl Richards
- Use money to gain control over your time.
- At some point, you must choose between being happy or being right.
I have nothing left to add to these wise teachings.