Wealth and Freedom in Personal Finance
These are some of the books that hold the top ten spots on Amazon’s Best Sellers list in the Personal Finance category:
The Psychology of Money
12 Months to $1 Million
The Millionaire FastLane
Rich Dad Poor Dad
I Will Teach You to Be Rich
Among these, “The Psychology of Money” stands out—it’s a fantastic read, and I highly recommend it. But let’s talk about the other four. Notice how they all revolve around the idea of wealth accumulation rather than effective money management?
Why are we so fixated on the idea of making and having more money? Much of it boils down to the status and freedom wealth promises. We're bombarded with this notion that our net worth equals our self-worth. But in reality, money should be a means to an end—not the end itself.
These books resonate because they paint a picture of an ideal life: one where money equals status and freedom from life’s less appealing aspects. But here’s the thing—we need to define what our ideal life truly looks like. Money is merely a tool. You don’t need to swim in riches to lead a fulfilling life; you just need to use your resources wisely.
A couple of months ago I prompted you to envision life with more money. Now, let’s flip the script. Imagine your income slashed by a third or even half. What stays in your budget? What goes?
Often, our knee-jerk response is to cling tighter to the idea of wealth. But let’s unpack that. What does wealth really mean? More often than not, higher income leads to higher expenses. So, how does money align with your true life goals? How does it enable you to spend more time doing what you love and less on what you don’t?
Money should facilitate a life rich in experiences, not just digits in a bank account. You don’t need to rake in millions annually to achieve that. It’s about mindful allocation, regardless of your paycheck size.