The Algebra of Wealth: A Simple Formula for Financial Security

There is so much good advice packed into this one book, that it's difficult to summarize. The most important idea is that "wealth" encompasses much more than material security, though that is certainly the basic necessity for a good life. Galloway writes about the importance of character, integrity, self-knowledge, and compassion for oneself and others, as being fundamental to wealth. His "formula" for wealth comprises four areas: Stoicism, Focus, Time, and Diversification.

Stoicism: "...is about living an intentional, temperate life in and out of work. It's about saving money, for sure, but also developing strong character and connecting with a community."

Focus: "...is primarily about earning an income.

Time: "...is your most important asset. It starts an ends with an understanding of the most powerful force in the universe: compound interest."

Diversification: "...personal finance questions, a road map for making sound investment decisions and for being an educated participant in the financial marketplace."

Galloway writes about each of these areas in simple, clear terms. In addition to terrific graphs and charts to illustrate concepts, he liberally intersperses events and stories from his own life, which really bring home the importance of the concept and how it operates in real life.

His book is also inspiring, as he discusses, in a pretty matter-of-fact (i.e., not self-pitying) way, his childhood of relative poverty, raised by his single mother and his difficult relationship with his father. He also talks about the lessons he's learned along the way, in business, finance and as a father, son, friend and citizen.

The book teaches so much, and at the same time is engaging, funny and is really hard to put down.

I can't remember the last time I so enjoyed reading a book about personal finance.

I wish I had read this when I was younger. Although I started retirement savings early, the abstract concept of capital and putting it to work would have hedged my bets while pursuing “passion” careers. The two were not as mutually exclusive as my Gen X thinking assumed. Going to get copies for my boys. I hope they read them. The truth of time for money is simple but profound. Figuring out your “monthly burn” at a young age, saving, and putting capital to work to hedge that time for money trade off is an elegant solution.

The book is okay but I don't think it was written for me. It reads as though he wrote it for his son or a student, and I can respect that. Some ideas are slightly fresh but mostly reiterated from other personal finance books.

There is a book trend these days to fill in space with stories or long-winded anecdotes. Galloway doesn't do that. He gets to the point and I like that. It reads like he put together a slide deck presentation and then had someone turn it into a book.

There's something I don't like about his writing voice though. He comes across as though he knows everything under the sun. He is persuasive though and he gives good arguments for what he thinks.

But regardless, I'd recommend it to a fresh graduate who doesn't know much about personal finance.