Saturday, October 10, 2009

Book Review - The Rules of Wealth by Richard Templar

100 rules divided into 5 sections makes for quick and easy reading.  Richard Templar’s Rules of Wealth is best described by a phrase he himself uses in the book -  behavioral financial advice. He doesn’t give you the nitty gritty how, or how much aspect of financial planning, but he gives you the when, why and more importantly, to what end.

Richard Templar divides the book into five sections that are equally engaging and important to consider when you are planning a rich financial future: thinking wealthy, getting wealthy, get even wealthier, staying wealthy, and sharing your wealth.  He ends on a very high moralistic note with his section on sharing your wealth, and puts the entire wealth accumulation process into perspective.

What I liked most about his advice was that he encouraged modesty and humbleness, despite also giving you tips on how to think like a financial mogul.  That seems to be lost in a lot of financial planning books – even the ones who encourage you to follow your dreams, they are also encouraging you to shout about your success from a rooftop (perhaps so you can name drop the title of their book, and increase sales).

Some of his rules of subtlety include #4 – Keep it under your hat, and #94 – Find ways to give people money without them feeling they are in your debt.   It really seems that his advice is geared towards you not only living the lifestyle you want by increasing your money management skills, but to keep the quality of relationships you are accustomed to, and not have your increased wealth cause tension.

In Only by Looking Wealthy Can You Become Wealthy (rule #22) he even goes as far to say ” Restrained elegance is what we shall aim for.  Old money.  Quality.  Simple lines.   Good haircut.  Clean nails.  You know the sort of stuff I mean.”  This is fantastic advice, and personally identify with it.

The book is a quick read because it is divided into so many easily consumable pieces.  You can read 2 or 3 pages at a time, and get the concepts.

It is an interesting read, even if he doesn’t invent any new financial systems for earning money.  But that is the whole point, isn’t it – these rules have worked for countless people who have accumulated wealth.  So, in theory, they can work for us too.

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