Rules of Wealth by Richard Templar – Book Review

How can you better generate, manage and grow money? In his timely book, The Rules of Wealth, Richard Templar – an astute observer of human behaviour – puts forward six core ideas to help readers handle their money more effectively. The pages help reveal why some people find money so “easy”, whilst others struggle to hold onto it.

The Rules of Wealth advances six core ideas about growing and managing wealth. The first explains that “wealth is a consequence” – i.e. it is not simply a reward for good financial decisions but a result of applying oneself. This is highly encouraging news since it means anyone could become wealthy – if they work hard and smart.

This leads us to an important issue when discussing wealth: Does it just “happen” to you, or is it the result of holding certain beliefs about money? Templar argues a compelling case for the latter. For instance, believing there’s never enough money can lead to fear-based decisions, limiting one’s financial potential. By contrast, an abundance mindset focuses on opportunities and attracts greater wealth.

“The samurai lived by a simple creed – no hesitation, no doubt, no surprise, no fear.”

Another key principle of the book is understanding the difference between price and value. The former is what you pay for something. The latter is what you get. Prices can change, but value tends to be more stable. As such, a “good deal” is when the price is low relative to value. The trick is disciplining yourself to wait for your target price and having a strong eye for what is truly valuable. This is often where we encounter a hard truth – it is harder to manage yourself than your money.

To help us with this, Templar offers a range of useful tips, such as “having a plan” for reaching your financial goal(s) from your starting point. Other key insights include knowing your risk tolerance, not comparing yourself to others, and tracking your progress to stay motivated and make necessary adjustments.

The Rules of Wealth is a great place to start for people new to learning about money. Although it does not delve deeply into more advanced topics, such as diversification, cause and effect, and timing, it will help lay a strong foundation of mindset, attitude, and habits that readers can build upon. We commend this book to you!