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Book Review: Rich is a State of Mind

I was browsing through the library the other day for some personal finance books and came by the title “Rich is a State of Mind – Building Wealth and Happiness“. The title intrigued me and since it was free, I gave it a go.

Reading through the first chapter or so, I got the impression that it would be a “Wealthy Barber” impersonation. The book started with similar type characters and trying to teach the same sort of lessons. For example, one of the first lessons was to “Pay Yourself First“, does that sound familiar?

As I read on though, I found that this book had more depth in the personal finance lessons compared to “The Wealthy Barber”. Along with that, the story line kept me glued to the book until I finished it.

Main points made by the book:

  • Pay Yourself First
  • The younger you start investing, the more powerful compounding interest is.
  • Taxation differences between interest/dividend/capital income.
  • The power of leverage (good and bad).
  • The importance of investor allocation and dollar cost averaging.
  • Varying your financial game plan in different stages of your life.
  • Everyone should have a will.

What I liked?

  • I really enjoyed the story and the way that they presented the information. This is a MUST read for anyone starting out with their finances.
  • Covered a lot of important personal finance topics.

What I didn’t like?

  • While they did talk about the power of leverage, they didn’t go into much details on the risks involved with leverage. Point being, not everyone will feel comfortable borrowing to invest.

Who should read this?

  • Anyone just starting out in their personal finance journey.
  • This book is definitely not for the financially savvy, although it does provide an entertaining story.

Final Thoughts:

  • Two thumbs UP! Great book that is written clearly and flows nicely which makes it an extremely easy book to read.
  • A useful follow up book for fans of “The Wealthy Barber”.
  • I picked this up at my local library, so check into your library to see if they carry it.
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FT About the author: FT is the founder and editor of Million Dollar Journey (est. 2006). Through various financial strategies outlined on this site, he grew his net worth from $200,000 in 2006 to $1,000,000 by 2014. You can read more about him here.

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