First of all, I now recommend reading "The Psychology of Money" alongside "Just Keep Buying" to anyone seeking financial advice. Secondly, I laughed out loud when the author noted that buying a 2-bedroom condo for $700,000 to start a family is ridiculous. I also cried a bit looking at the prices in Vancouver.
The book is full of on-point practical advice. I won't be able to reiterate all the points here entirely but here're some ideas that caught my eye when reading:
- The role of chance is underestimated; Bill Gates won one in a million, and his friend lost one in a million, the difference being the wealthiest person alive and dead.
- Don't confuse being wealthy and rich; first is hidden (amount of liquid assets), and second is visible (expensive cars, houses, gadgets).
- Money buys time.
- Having enough right now makes you better off than having more but not enough.
- Compound interest and time are essential in investing; start early and never interrupt compounding.
- Saving money is the fastest way to get wealthy (duh).
- Something will go wrong, and you need to plan for it; having a liquid asset buffer is necessary.
- Sometimes having a 0% interest savings account is good: it gives one space to maneuver when an opportunity arises.
- Invest in a way that allows you to sleep at night without waking up in cold sweat; peace of mind is more important than returns in the long term.
- Even if you fail most of the time, you can still become a wealthy investor; outliers and long tails dictate the most important things in probabilities.
Overall, this is a solid book on becoming wealthy (or rich, depending on your goals). The whole idea of how investing is more emotional and psychological rather than rational is a fascinating angle. I recommend reading "The Psychology of Money"! You certainly will get much return on the time spent on it.