Pages: 271

Chapters: 21 chapters

Time of Day to Read: Anytime

Format: Paperback

First Print: 2020

This read touches your emotional intelligence and gives it a right old tune up – in the best kind of way!

This book has been recommended by a few people, a few times over the years. This is my second time reading this book. For me this is an absolute must if you are spinning the wheels when it comes to your money. Firstly, this book gives you some key definitions, such as ‘why rich people do some crazy things’ or ‘how much is enough’ and ‘what wealth actually means’ (hint it is not what most people think).

Delving deeper, it goes into some of the key psychology elements surrounding money and why we do what we do with our money. Using a key analogy of the man in the car paradox, Morgan is able to convey a very powerful message. This is, no one cares what car you drive or which watch hangs on your wrist. I have been a victim of this, as I’m sure many of you have. Since I read this, I find myself thinking every time I am looking to buy something, no one will notice me with this thing and more often than not don’t buy it.

The next step in rewriting the narrative is to save money. Now I won’t spoil the details here, but there are some key components of why this is a must. As Morgan puts it “planning is important, but the most important part of every plan is to plan on the plan not going according to plan.” Create a conservative forecast. Then halve it. Base your calculations off that number, and you should as be able to whether any storm as far as reasonably practicable.

Quotes:

• History never repeats itself, man does – Voltaire – My take on this Voltaire classic is that the same thing may never repeat itself in history i.e. the housing bubble. However response or their mistakes can be repeated again and again.
• To make money they didn’t have and didn’t need, they risked what they did have and did need. And that’s foolish. – Warren Buffett – This is pretty simple in my opinion. Don’t take risks on money you don’t need. Only risk what you can are willing to live without
• You don’t need tremendous force to create tremendous results. Keep chipping away over time and the results will come. – Morgan Housel – Build momentum. Do this by starting small, keep building, then eventually you will have a tidal wave that can overcome any obstacle your mind is put to.

This is a book that you can keep using as a reference guide. You can return and read certain chapters or the whole book. I can see myself coming back to this time and time again to fine tune my approach and relationship to money.