How does one normally think about money? How should one think about money?The answer to the first question, at least for me, has typically been what money can buy.
When you reach that place in adulthood where you realize buying more stuff or purchasing replacement things for the perfectly acceptable things you already own is pointless, it’s time to reframe the way you think about money.
The philosophies discussed in the book are fairly common on the pages of the blogs and books I read, but rather uncommon in day-to-day life for the average American.
What sort of philosophies?– Live well below your means.– Save early and often, prioritizing retirement savings above all.– Spending on luxuries won’t lead to long-term happiness.
Among the findings are that money doesn’t buy as much happiness as we would think, we overvalue objects and undervalue experiences, spending on others makes us happy, & life satisfaction troughs in one’s forties.
The 4% rule isn’t ignored; although it’s not prominently featured, either. He does, much to my dismay, mention a different rule of thumb that states you’ll want about 80% of your pre-retirement income to live well in retirement.
I think the people that will benefit the most from this book include:– People just coming into money (starting a career)– Those who have been trying to buy happiness.