Perfect for: Financial Independence, Basic Money Management
Length: 272 pages
Depth: Light read; requires reflecting on your spending decisions
This book studies the habits and behaviors of millionaires in America. The main point the author makes is that anyone can accumulate wealth if they are frugal and patient — wealth is built slowly over time. Those who fall deep into the trap of consumer spending (cars, clothes, houses, etc.) often do not have wealth — they spend every dollar they earn and therefore must keep earning at an accelerated pace.
All the Feels:
I need to rethink a few of my spending habits but for the most part I was aligned with the authors suggestions. Most of the facts in this book seem obvious, but humans are irrational. We know a $5000 watch is probably not the best use of that capital, yet we are still tempted to buy it.
My Main Takeaway(s):
Wealth is what you have accumulated, not what you spend. Do not be concerned about the flash.
Defense (planning investments, frugality, minimizing taxes, etc.) is just as important as offense (income).
Don’t be motivated by impressing others and showing them how successful you are via material items
What is your goal this year and long term?
Successful accumulators of wealth spend a good deal of time planning their spending and investments. They also are happy to pay for services (accounting, legal, etc.) because they see the return on their money.