Psych Yourself Rich - A Review

By Eric Hammer

Psych Yourself Rich: Get the Mindset and Discipline You Need to Build Your Financial Life, by Farnoosh Torabi - FT Press 2010

You would think with that with a name like "Psych Yourself Rich," there would be quite a little bit of psychological advice – mind tricks that one could play on one self to put yourself into a rich frame of mind. Indeed, that’s largely what the wealthy in our country do – those who are self made anyway. They psych themselves rich by deciding that they were going to work hard and do what they have to do to make it in this world.

However, while Farnoosh Torabi does go into some psychological discussion about money, discussing how we have different ideas about money and about what a financial crisis constitutes, for the most part, Ms. Torabi instead offers practical advice on how to plan a budget and stick to it.

Mind you, the advice she offers is extremely helpful – you’ll learn about some of the investing mistakes that amateurs make and she points out to you some of the fallacies of following traditional views regarding money. In fact, this book could easily be described as "Personal Finance 101."

For those of us who have read a few books on the subject of personal finance however (not to mention those of us who write about personal finance for a living), the information, while interesting, doesn’t seem to be all that earth shattering.

In essence, the advice Ms. Torabi offers here readers is that you need to treat money with respect and understand that it is after all a finite resource. She recommends, as most financial writers do, paying off your bills in full, saving money where you can, not spending money on things you don’t need.

To be fair, I am oversimplifying what Ms. Torabi has to offer. Yes, the information here is all basic common sense about finance, but it’s common sense which happens to be sound financial advice and which all too often, we tend to forget or may not even know about in the kind of society we’ve grown up in (spending all the time – rarely bothering to save, always looking to acquire more things, etc.).

Ms. Torabi’s best points however (and here at least, it feels like the title is a bit more justified), seem to come out in the personal stories she shares of real people who were in real financial trouble and how they managed to move beyond those difficulties. The stories will help to inspire those for whom money is a difficult and taboo subject.

However, for those who need a book on psychology – how to think like someone who is rich and how to get over our mental blocks to doing the things that will make us rich (as opposed to simply being told, this is what you should do), other books may be more helpful.

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