I have seen this book everywhere YouTube videos, blog posts, people's timelines. I just kept holding back from getting a copy and digesting it. I thought it would have everything I already know about money. The likes of beliefs, investments, bonds, stocks, building businesses, passive income, etc. I had no idea other things were waiting for me.
I used to think people who have money now, and don't have it anymore tomorrow, had something to do with their limiting beliefs, and choices alone. At least, I have witnessed it happens to me and other people around me. Yes, most of the financial books talk about these objectives too.
I opened the first few pages of this book, and I am short of words by the newer definition towards the reasons we act the way we do with our money. Something about the economies we grew up around.
It explains why my friend, Sunday, would rather spend #1500 on a lottery ticket/white paper (Betnaija) than put it in an investment account every day. And whenever I visit him, he tells me, he is waiting for the day he will win up to a million naira or more. And I wonder how the faith in amassing quick wealth through this means appeals to him. I find it crazy. Yes, this book did say, I would think it crazy.
Wait, this was only the first few pages, I had a feeling, there will be more revelations as I dive deeper into the pages and chapters. You can bet, they were other revelations. And I am so ready to share them with you.
Luck and Risks
Oftentimes, we say, the rich fellow among us had only been lucky. He couldn't have gotten anywhere if he had no rich parents or inheritance. You could add any other thing, you think, someone lucky had, to gain wealth and you would be right. In the arena of wealth, even though, most people might not give credit to this attribute, luck does play a role.
Risk is a factor too in the realm of wealth, and you can't tell a complete story without it. Risk and Luck are said to be siblings by the author, and I agree with him. The reason is that, at one point when life decides to take one's ability to make wealth, yet, allows another to become wealthy, it's quite risky. You'll never know if you will be chosen to be in luck, or risk never becoming wealthy as a result of the circumstances you face.
What is wealth to you?
The author defines wealth as something you do not see. We live in a world where wealth is attributed to flashy things and lifestyles. It's lifestyle inflation that has made us consider wealth to be equivalent to material things. In reality, the flashy things we purchase with money don't have anything to do with our wealth. Instead, it's our ego on display, we are trying to please the next person.
It's happening every day, right before our eyes, we tend to think someone is wealthy if they have the latest gadgets, devices, toys, and outfits. Wealth isn't about all of those items we buy, it's being able to forgo today's purchase, for tomorrow's freedom. Wealth is wrapped around the idea of having more options in the future
Do you even sleep at night?
The psychology of money also revolves around managing your money so you can sleep properly at night. If you always have to lay awake all night thinking of where to raise money to fund your lifestyle, you need a change. You should be able to sleep better at night, knowing, that you have taken proper decisions around your finances.
Money equals freedom
If you have forgotten, I am here to remind you that the best reason you should have for toiling day and night for money should be to have more time. Time is the greatest asset, it's been said, time and time again. And they are not wrong. Making money for you should align with freedom. Having the time to do whatever you want, whenever you want, with whoever you want, is the best excuse to create Wealth. Time is one factor that cannot be gotten back once lost. Therefore, you should aim to have more time by managing your money wisely.
Save, save and save
I know I have written about having reasons to save before, now, this book teaches me, I don't need any reason to save. And the author explains that you can not predict the future. You can't tell for sure if you will still like the same things in the next few years. Therefore, you should just save, not necessarily towards a goal, or item. You should be comfortable with putting money away.
When you do this, you will discover that you can choose to tow a different path as you progress in life. And having that saving, gives you leverage, to take that leap. The fact that you had money saved can help you change your career along the way. You can hop into a completely different field because you wouldn't be worried about money for a while until you start earning from your new field.
Give yourself space to fall
Most times your investment might go sour, this is why you mustn't push yourself to the extremes. Make sure you have a solid foundation to stand upon. Do not invest in anything, and allow, your expenses to depend on the outcome of that investment. No, you won't be able to have the 8th wonders of the world work for you(compound interest).
If you have pressing issues, that needed to be sorted out, you are likely to touch your investment account. And if you are living through a dip, your emotions wouldn't be stable. You could be among those who panic sell their stocks, crypto, etc.
The overall advice is to invest, but, have that liquid fund, that takes you through the difficult times of the economy. This means you ought to learn to live below your means and learn to manage your money effectively.
Conclusion
The psychology of money did take a step further from what I already knew about building wealth. But there was something it solidified. I started having friends who do not value saving or living less than their means. Somehow, I was getting affected, because, I am someone who has been taught to be contented with what I have. But my friends weren't having any of that.
The flashy things speak volumes for them, so, this book, breaks me away from their entanglement. And takes me back to who I have always been before I met them. I discovered I wasn't doing anything wrong when I lived and thought this way. I was on the right track, and this book reminded me of my root, and how it's part of the recipe for my dream wealth.
More things might appeal to you, and your money, all you have to do is get a copy of this book, and discover more for yourself. Thanks for reading. ❤️