Book Review: Mindful Money by Jonathan K. DeYoe

First thoughts on this book are that I enjoyed it! The book is broken into 3 parts: debunking current financial myths, 8 pillars of happiness, and making a plan. The author incorporates his Buddhist knowledge into his financial knowledge to create a style of writing that is easy to understand and soothing. The book is an easy read. The first two chapters were particularly interesting to me but the third is geared more towards someone newer to finance. I would give it a 7/10 and recommend others read it.

Part 1 - Unmasking the Illusions:

There are 8 illusions discussed in this book. Some of which are: that you can achieve your financial goals without a plan, gurus have a secret sauce that people don't know about, market timing/ stock selection is the key to success, speculating = investing, and there is plenty of time to plan for retirement. These are all not true. It's very difficult to achieve your financial goals without a plan. Without a plan, how does one know what to do next? How do you know what direction to follow? Gurus can't tell people anything that they can't find through a simple Google search. Market timing/ stock selection isn't the key to success - consistent action over long periods of time constitutes success. The earlier one starts planning for retirement, the better. Don't hesitate to begin planning for the future and for retirement.

Part 2 - Finding Your Happiness:

Similarly to the first part, there 8 pillars to happiness. The 8 pillars:

1) Health

2) Engagement

3) Relationships

4) Meaning

5) Accountability

6) Generosity

7) Optimism

8) Gratitude

I agree with a lot of these pillars and it was nice to read through them myself. Speaking to a couple of the ones I highly agree with - health is super important for a successful life (whatever that means to you). When health is deteriorating, everything else in life takes a back seat. So, staying healthy through eating right, working out, and practicing good mental health strategies will lead to financial success and success in all aspects of life. The other pillar I really appreciate is generosity. Oprah Winfrey once said, "Be thankful for what you have; you'll end up having more. If you concentrate on what you don't have, you will never, ever have enough." I believe this to be so true. By being grateful but ambitious, I am able to strive for my next goal while being content in my current situation.

Part 3 - Making a Plan:

The last section of this book details some of the steps one should take in order to building a solid financial position. The author sticks with his theme of 8 and records 8 steps to ensure a strong financial future. The steps are as follows:

1) Develop your vision

2) Start a saving habit

3) Build an emergency fund

4) Eliminate high interest debt

5) Begin investing for retirement

6) Eliminate low interest debt

7) Increase your emergency fund

8) Invest in a taxable non-retirement account

As I was reading this last section of the book, I was pleased to see that some of my goals for 2020 coincided with some of these steps (i.e. building an emergency fund & paying off my high interest loans). In my opinion, the first step is the most crucial out of any and that is why the author says to perform it first. The first step is so important because without a direction or reason for saving - one would be unmotivated to make the sacrifices necessary to live a financially sound lifestyle. Once someone has developed their "why," the rest of the steps are a little easier to implement because there is a driving force. Step 2 emphasizes the importance of spending less than what is earned. This is crucial for all the steps to follow. By having extra money and not living paycheck-to-paycheck, a person can begin to build the emergency fund and pay off high interest debt. Once those two things are accomplished, money can be put to work and produce more money through investing in different accounts.

In summary, I thought this was an excellent book for those who are just starting out in their financial journey. The top 5 key takeaways for me are:

1) It's important to not let other preconceived notions about money influence your own investing/ finances. Do your own due diligence and learn how to care for money properly.

2) Before money comes into play, it is important to find out what makes you happy first and build your financial plan, based on those pillars. Without a strong "why," the journey will be long and difficult.

3) Spend less than you earn. This is the major key for any financial change.

4) Save money for emergencies while paying off debt.

5) Invest for the future.

Happy investing!