Carl Richards (2) (1972–)

If cold logic guided financial decisions, financial responsibly and profitable portfolios might be the norm. The emotional side of our personality can often push us to act unwisely or irresponsibly leading to greater debt and poor financial returns.

Carl Richards discusses the ways our behavior negatively affects our decisions even when we know we are acting irrationally. The 24-hour financial news channels, often staffed with animated financial pundits screaming orders to buy and sell, the show more flood of financial magazines with suggestions for the top stocks to purchase or dump, and the large investment book section of the average bookstore can overwhelm the everyday investor and provide guidance that seems reasonable but should be ignored. In fact, the author provides insight on how to use this information, even suggesting good reasons why we might ignore it.

Addressing our personal reactions, the author identifies triggers that can engage our emotional fight-or-flight response and suggests tactics for keeping the emotional response in check. Richards also advises how to react during emotional financial waves that sweep up the media, friends, and our co-workers. Much of his guidance runs counter to the financial industry that makes its money on financial advice (not acting on that advice - an important distinction) yet when you meditate on it, it makes perfect sense.

Richards acknowledges that some will be dissatisfied that the book does not provide a concrete blueprint for how to map ones finances and if that is what you are looking for, this book is for you. However; before getting a "blueprint" book you should read The Behavior Gap to help you wisely use any planning tools.

This book reflects my philosophy that outsmarting the market is a fool's errand and there is no "magic stock" that hours of research will unveil to make the average investor rich. Instead of throwing up our hands and being a victim of the market, we can exercise wise judgment, act on what we can control, and behave logically (and often contrarian) to achieve sensible financial success and satisfactory financial returns. show less

As the first financial planning book I’ve read (I know, I know. I’m sorry), this was a good choice. The tone is logical and encouraging, and it doesn’t present a one-size-fits-all approach. The author is, in fact, adamantly against such approaches. He encourages the reader to ask himself/herself a couple of thought-provoking questions to get started. I took this to heart and noted my answers, which will be good to have going forward.
Time will tell if this is one of those rare show more life-changing books, but for now, I at least feel nudged in a positive direction. show less

This is not a how-to book, nor is it a get rich quick book. What it is is a simple discussion of the behaviors that we often undertake in financial situations, but also in life. I found much of the book really crosses from the financial arena into the everyday life arena and the author points out that most financial issues are really life issues.

The author wrote this in an easy to read manner and I read it rather quickly. The chapters are just the right length and it is worth a read if you show more are interested in understanding your finances better or simply want a look at how we live through the lens of the financial spectrum. show less

My biggest problem with this book is that I think it is really an article padded to book length, rather than a book. I felt like a lot of it was just rehashing things. On the other hand, I've been reading a lot about personal finance, and it could just be that there are only so many ways to describe reality.

What I really liked about this book is that the author clearly states that money is more about emotions than anything else. He talks about how fear and greed tug us back and forth in our show more money lives, and that we need to step back and use our intellect to make decisions, while acknowleging how hard that is.

He also keeps saying that no one knows your life like you do, and no one can make the decisions except you. His push is for everyone to decide what they really care about, what matters most to them, and start making money decisions with that in mind. He also points out that a long time horizon is almost impossible to plan for, so we should focus on the next three years.

This is an excellent personal finance book, one that is worth revisiting and reflecting on every couple of years, to help stay on track. show less