summary ofKnow Yourself, Know Your MoneyBook by Rachel Cruze

first KEY POINT

Understanding the mysteries of your financial habits

Reynolds Berkeley was an average boy that grew up on a farm in Okran, Ohio. Though one could hardly regard his family as inferior, his family’s subsistence stemmed from his parents’ frugal practices. Reynolds’ dad had minimal education but still managed to keep a budget and ledger for all farm and household expenses. The ability of Berkeley’s children to get some schooling came at a price; for them, the quintessential profanities of youth were absent. Reynolds Berkeley grew to be a prosperous property realtor but found it challenging to live within his means. The acute frugality of his youth made a spending beast out of him in adulthood.

Like Reynolds, our financial realities originate from the fiber of our interactions with money, right from childhood. In effect, an adequate understanding of yourself will be an eye-opener to the previously enigmatic spending habits. Self-understanding entails answering a series of questions about the “hows” and “whys” of your money habits. Such questions include:
• What convictions do I have about money and why?
• Is there a trend in the financial pitfalls I’ve encountered so far?
• Do I find it challenging to remain on the same page as my spouse about money matters?What are the safeguards I need to put in place to secure the financial security of my wards?However, this summary is no manifesto or seven-point agenda on financial actualization. Instead, it is a personal guide for self-discovery. Subsequently, you see your financial faults for what they are and make amends going forward.

So, whether you’re finding it difficult to draw up a budget, pay off your student loan, cut down on credit, invest more money, or lead a financially disciplined family, you have wisely invested your time. Read on to decipher your Achilles heel with money and how to get better.