As a principal in a financial planning firm, I am often asked by friends, family, and clients for recommendations on books that they can read to help them become better investors and stewards of money.
Fortunately, there is plenty of good literature on the subject and I have always maintained a short list of my favorites.
However, thanks to the brilliant insight of author Morgan Housel, I now have a go-to book that I recommend each of you read: The Psychology of Money – Timeless Lessons on Wealth, Greed, and Happiness.
Although America remains the wealthiest country on earth, a surprising low percentage of Americans are successful at accumulating and keeping wealth during their lifetimes. In his book, Mr. Housel uses real stories to help the reader understand that it is not lack of economic opportunity that holds us back from financial success, but more often it is our behavior that impedes us from reaching our financial goals. He helps us understand how fear and greed can combine to influence our bad financial and investment decisions.
One of my favorite quotes from the book is: “Good investing is not necessarily about making good decisions. It’s about consistently not screwing up.” Or another gem on the secret of building wealth: “The first idea — simple, but easy to overlook — is that building wealth has little to do with your income or investment returns, and lots to do with your savings rate.”
If you have a son or daughter in college and you want to help them set a lifetime course of economic prosperity, then buy them Housel’s book. If you want to learn how to be a successful investor like Warren Buffet, then buy the book.
Scott Johnson is the CEO of DecisionPoint Financial, LLC. He is a Certified Financial Planner™ and an Accredited Investment Fiduciary. He and his firm provide comprehensive financial planning and investment management services to individuals and institutions. Scott can be reached at (480) 553-6249, scott@dpplanners.com, or visit the website at decisionpointfinancial.com.
DecisionPoint Financial, LLC is a Registered Investment Advisor. All investments involve risk. Risks associated with investing in securities include increased volatility and loss of principal. Past performance is no guarantee of future results. The information herein is educational in nature and does not represent investment advice. All rights reserved. DecisionPoint Financial, LLC © 2021.