Book Summary: “The Courage To Be Rich” by Suze Osman

Investment Research 2012-03-29

suzeosman the courage to be rich

This is a book summary I have written for “The Courage To Be Rich”, by Suze OsmanPart 1: Acts Of Courage

Chapter 1. The Courage To Look WithinThe way we think and feel about money can affect how much we have, some thought patterns can be internal obstacles. Fear of investment, shame of having debts, and anger at not having what we want are common toxic emotions people have with money. We are not getting rich by feeling afraid, ashamed or angry. Forgive the past & present. Replace thoughts of powerlessness to thoughts of “I can”.

Chapter 2. The Courage To Have More & Be MoreThoughts of ‘I can’t’ are thoughts of poverty. Such thoughts of defeat, if not corrected, can pass down for generations. Think of thoughts as actors in our mind, we are the director, we are the one in control of where they’ll be and when they speak. We must use words of abundance, wealth and bounty.

Words of poverty:I can’tI’ll neverI don’t know howI wish I had

Words of power:I canI alwaysI am learning howI will haveChapter 3. The Courage to Make Room for More MoneyUnopened bills, statements are financial clutters. Bank & credit card statements that you don’t understand are costing us and blocking us.

Part 2: The Value Of MoneyChapter 4. The Courage to Value MoneyLaw of money: People First. Then Money. Then Things. Careless spending on luxury designer items, and items that are seldom used could turn into substantial savings.Chapter 5. Defining Value & WorthOur self worth must rise along with our net worth.Law of money: When you undervalue what you do, the world will undervalue who you are. Ask more of yourself and of others. We should not feel guilty about wanting more money, the same way we shouldn’t feel guilty for loving our family.

Chapter 6. The Courage to Face The UnknownWhen we are in credit card debt, our self worth are in a kind of free fall. Having excessive credit card debt often means that we are living a lie, owning things we can’t afford and being dishonest about our future. Overspending to satisfy desire for traveling, eating out and entertainment are the most dishonorable kind of debt.

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Remember you are more than your negative balance. The less self esteem we have, the more debt we have. Face your credit card debit problem by telling others about it. We must pay more than minimum.

Chapter 7. Rich ThoughtsRich thoughts about children: Be forthright about money to children, the sooner we have a saving or investment plan that pay for college, the less anxious we and our children are.Rich thoughts about cars: Buy a reliable model, pay it off in 5 years, and own it for 8-10 years.Rich thoughts about taxes: Learn to use tax software or hire a tax preparer.Rich thoughts about tomorrow, today: Scale back on luxuries can free up a lot of money to save.

Part 3: For Love And Money

Chapter 8. The Courage to Open Your Heart, The Courage to Open Your HandsCouples need to assess how compatible they are in terms of:Investment style: Aggressive or conservative?Bills: Who will pay what?Prenuptial agreement: Do you want one?Child rearing: Private schools or public schools?Any past issues such as debts?

We are, in most cases, not liable for debts incurred by our spouses before marriage.  But we are liable for debts incurred after our marriage even if it’s only in our spouse’s name. Even when your spouse, or ex-spouse files for bankruptcy, you may still be liable.Chapter 9. The Business of LoveDo the unconventional: Plan for what-ifs while you are still totally in love. Draw up prenuptial agreements or cohabitation / property agreement. Even we may not have assets right now, we may one day have assets that’s why we need an agreement.