I like picking up personal finance books from time to time. I thought Scott Galloway’s book on wealth would be thought provoking given I’ve read many of his riffs on his newsletter. It was.
That wasn’t because there was a novel idea I’d never come across before – instead, it was because it was a well put together synthesis of timeless personal finance and investing wisdom. My reflections –
(1) Most people are going to get wealthy slowly as a function of their ability to deploy capital that compounds over time.
(2) Always watch your burn. A dollar saved is more valuable than a dollar earned (thanks to taxes). Being able to live simply goes a long way in our ability to accumulate wealth. And if there’s one personal finance habit that helps above all others, it is tracking our spending.
(3) To build a great career, don’t follow your passion. Follow your talent. Then work hard at it – being out of balance in your 20s and 30s often gives us balance in our 30s and 40s. Get into the office, do the work.
(4) Diversify. Start with ETFs that cover the stock market. In time, make sure you’re exposed to different kinds of risks. Scott advocates testing buying and holding individual stocks we have conviction in with <=20% of our portfolio. He is also a proponent of real estate investing if you can handle the overhead (property management, maintenance, etc.)
(5) Get off social media and anything that results in us comparing our wealth. Someone will always have the bigger boat.
It was a well put together book – it is one I’ll be recommending.
