The key ideas in the book in 7 lines:
- How much money you have doesn’t depend on intelligence—it depends on behavior.
- Soft skills (patience, humility, flexibility) matter more than technical financial knowledge.
- People make money decisions emotionally, based on personal experiences, not just logical analysis.
- Luck and risk are inseparable forces in financial success.
- The ability to “stick around” in investing, career, and business matters more than intelligence.
- “Enough” is a concept that can save you from financial regret.
- Freedom and independence are the ultimate forms of wealth.
Key Ideas & Takeaways
Doing well with money is more about behaviour than intelligence.
“The premise of this book is that doing well with money has little to do with how smart you are and a lot to do with how you behave.”
The reason I highlight it: Because it emphasises that how much money we have doesn’t depend on how smart we are.
Soft skills matter more than technical knowledge in finance.
“Soft skills are more important than the technical side of money.”
The reason I highlight it: I agree, soft skills are underrated.
Financial decisions are often irrational and emotional.
“What you’re doing seems crazy, but I kind of understand why you’re doing it.”
“Few people make financial decisions purely with a spreadsheet. They make them at the dinner table, or in a company meeting.”
The reason I highlight it: Understanding that people make financial decisions in an irrational, personal way more than rationally “doing the math.”
Perception of success is often exaggerated.
“Nothing is as good or as bad as it seems.” – Scott Galloway
The reason I highlight it: There’s always two sides to everything.
Luck and risk shape financial outcomes.
“Luck and risk are both the reality that every outcome in life is guided by forces other than individual effort.”
The reason I highlight it: Understanding that luck and risk exist together helps with financial decision-making.
Be cautious about who you admire and criticise.
“Be careful who you praise and admire. Be careful who you look down upon and wish to avoid becoming.”
The reason I highlight it: I like how the author illustrates the importance of identifying the “right model.”
Success isn’t always due to hard work, and failure isn’t always due to laziness.
“I want you to be successful, and I want you to earn it. But realize that not all success is due to hard work, and not all poverty is due to laziness.”
The reason I highlight it: It’s important to focus on broad patterns rather than extreme examples.
Chasing more leads to regret; knowing when you have “enough” is key.
“Enough is realising that the opposite—an insatiable appetite for more—will push you to the point of regret.”
The reason I highlight it: Many people only stop chasing wealth when they reach a breaking point.
Reputation, freedom, and relationships are invaluable.
“Reputation is invaluable. Freedom and independence are invaluable. Family and friends are invaluable. Being loved by those who you want to love you is invaluable. Happiness is invaluable.”
The reason I highlight it: True wealth isn’t just financial—it’s about what truly matters in life.
Compounding is the most powerful force in finance.
“If something compounds—if a little growth serves as the fuel for future growth—a small starting base can lead to results so extraordinary they seem to defy logic.”
The reason I highlight it: Small, consistent efforts lead to exponential results over time.
Longevity matters more than intelligence or short-term wins.
“Not ‘growth’ or ‘brains’ or ‘insight.’ The ability to stick around for a long time, without wiping out or being forced to give up, is what makes the biggest difference.”
The reason I highlight it: Survival is the foundation of success.
Financial independence is more valuable than luxury.
“Wealth is what you don’t see. Wealth is the nice cars not purchased, the diamonds not bought, the watches not worn.”
The reason I highlight it: True wealth is in financial security, not material possessions.
Flexibility is a major competitive advantage.
“In a world where intelligence is hyper-competitive, competitive advantages tilt toward nuanced and soft skills—like communication, empathy, and, perhaps most of all, flexibility.”
The reason I highlight it: Adaptability is more valuable than technical skills in the modern economy.
The ability to control your time is the highest form of wealth.
“Control over doing what you want, when you want to, with the people you want to, is the broadest lifestyle variable that makes people happy.”
The reason I highlight it: Having control over your time is more important than just having money.
Risk comes from things outside your control.
“Coming to terms with how much you don’t know means coming to terms with how much of what happens in the world is out of your control.”
The reason I highlight it: Accepting uncertainty helps make better financial decisions.
Investing is more about emotional resilience than technical knowledge.
“Investing is not a hard science. It’s a massive group of people making imperfect decisions with limited information.”
The reason I highlight it: Even smart investors can make bad decisions because of emotions.
Expecting setbacks makes you more resilient.
“A third is that progress happens too slowly to notice, but setbacks happen too quickly to ignore.”
The reason I highlight it: Recognising this pattern helps with patience and long-term thinking.