Author: cindylundberg@verdecm.com

Why Verde Clients Are Still in a Strong Position Despite the Drop to 3.75% on High-Yield Savings

If you’ve been Googling “What does the Fed rate cut mean for savings accounts?” or “Will my interest rate go down after the Federal Reserve decision?” you’re not alone.

On the heels of the Federal Reserve’s most recent 0.25% interest rate cut, questions are swirling:

• Are high-yield savings accounts still worth it?
• Will my returns shrink?
• Is now a good time to borrow?

At Verde Capital Management, we’ve already run the numbers and here’s exactly how this latest rate cut affects our clients, their savings, and their ability to make savvy financial moves in 2025.

Verde Flourish Drops to 3.75%, Still Crushing Big Banks

Let’s address the elephant in the portfolio: Yes, the Fed cut rates. And yes, our Verde Flourish savings account has adjusted accordingly:

• New rate: 3.75% APY (previously 4.00%)
• Still competitive: Most traditional banks are offering 0.01%–0.50% (that’s not a typo)

If you’re serious about parking cash wisely, a 3.75% yield is still one of the most strategic cash moves available. And it’s FDIC-insured via our partner platform, so you get both yield and security.

Smart Borrowing Just Got Smarter: 5.00% SBLOC

Here’s the upside of falling rates: borrowing just got cheaper, too.

Our Securities-Backed Line of Credit (SBLOC) now offers:

• 5.00% interest (down from 5.25%)
• No need to liquidate investments
• Flexibility for big expenses without tax consequences

A securities backed loan could help you plan a strategic real estate move, tuition payments, taxes payments, or simply give you liquidity without a paper trail of selling assets.

Curious if it’s right for you? Reach out to a Verde advisor and we’ll run the numbers together.

Verde Strategy in a Post-Rate-Cut World: Steady, Smart, Strategic

Let’s be clear: The Fed’s decision affects rates but it doesn’t change your long-term goals. At Verde, our approach hasn’t wavered:

• Cash earns while it waits (thanks toFlourish)
• Liquidity is available (thanks to the SBLOC strategy)
• Your investments are diversified and tax-aware
• Your plan is built to weather markets, not follow them

Frequently Asked Questions We’re Hearing from Clients

Will savings rates drop more?

It’s possible. The Fed is signaling a cautious path forward. That’s why locking in higher-yield options now is smart.

Should I move my savings from my big bank?

If your bank is paying less than 1% and you’re not planning to spend the cash immediately, then yes. Contact us about Flourish.

Should I borrow now before rates rise again?

Maybe. If you have an opportunity or need coming up, now could be the time to take action while borrowing costs are down.

What Should You Do Next?

If you’re wondering how this rate cut affects your financial plan, contact us for guidance.

Schedule a call with our team to talk through your cash strategy, investment portfolio, or potential borrowing needs. bit.ly/callwithverde

Already a client? Log into your Verde client portal or message your advisor to review your current allocations.

The markets have been on a tear this year. We’ve seen strong gains, record highs, and more optimism than we’ve had in quite some time. But as the calendar flips to September, it’s natural to get a little twitchy. Historically, September is the worst month for stocks1, and with headlines hinting at everything from inflation to interest rate decisions, the question on many investors’ minds is: Should I do something?

 

The short answer? Probably not what you think.

 

Let’s take a look at why seasoned investors don’t fear volatility, but they often plan for it, expect it, and even welcome it.

 

Strong Years Still Have Speed Bumps

Even in up years, volatility is normal and so are temporary setbacks. The market can’t go up in a straight line (even if we wish it would), and September tends to remind us of that.

 

But here’s the twist, years with lots of volatility (10+ big market swings) still saw average returns over 19%. In other words, big moves don’t mean bad years. In fact, they often mean the opposite.

 

September Slumps Can Be Smart Entry Points

No one enjoys seeing red in their portfolio. But history shows that buying during a 10% dip leads to median 12-month returns of 15.9%, and buying from the actual bottom of that dip boosts it to 24.5%.

 

So instead of treating September’s potential shakiness as a reason to retreat, think of it as the market’s version of a seasonal sale. It’s the time of year when fear goes on clearance, and long-term thinkers go shopping.

 

Bearish Sentiment = Bullish Potential

Investor sentiment has been incredibly bearish during some of the best buying opportunities in recent history. In the top 10 most bearish sentiment periods, the average return over the next year was 25.1%.

 

Translation? When everyone else is scared, the disciplined investor often reaps the rewards.

 

The Real Risk Is Missing Out

If you think you can avoid September’s swoons and just jump back in for the good days, think again. Missing just the top 5 trading days over the last 20 years would have cut a portfolio’s returns by more than a third (from $717K to $452K on a $100K investment).

 

It’s not about timing the market. It’s about time in the market.

 

What Should You Do This Month?

 

• Don’t panic. The market might wobble, it usually does this time of year. 
• Stay invested. History shows that staying the course beats trying to time the dips. 
• Review your strategy. If volatility makes you lose sleep, it’s a sign to revisit your risk tolerance and diversification. 
• Think long-term. This year has rewarded patient investors. Don’t let one month derail your momentum. 

 

It’s tempting to react when things get bumpy, especially after a great run. But history is clear: volatility is not the enemy. It’s often the doorway to long-term wealth.

 

If you need a partner to help you navigate the emotional roller coaster and keep your investments aligned with your goals, reach out to a Verde advisor. bit.ly/callwithverde

 

Sources

1https://www.morningstar.com/news/marketwatch/2025090155/september-is-historically-the-worst-month-of-the-year-for-stocks-why-this-time-could-be-different

https://www.blackrock.com/us/financial-professionals/literature/presentation/student-of-the-market-special-edition-market-volatility.pdf

Jordan Peterson’s work has been about navigating between chaos and order. His first book, 12 Rules for Life, focused on bringing structure to life, and Beyond Order: 12 More Rules for Life is a guide for what comes next. This book is about embracing chaos to grow, and a reminder that a little bit of unknown is a good thing.

I wanted to dive into three rules from the book that resonated with me, because I think they’re crucial for anyone trying to build a better life, whether that’s just with your money or with your personal habits.

Rule 2: Imagine Who You Could Be, and Then Aim Single-Mindedly at That

This is a call to action. I find it easy to get swallowed up by errands, work, social media, and then a month has passed, but I’m not really moving anywhere. But Peterson argues that a clear vision of our ideal self is the most important thing we can have. We need a destination to navigate by, or we’ll just drift.

This is not setting an impossible plan we have to follow to a T. Once we have a clear picture of who we want to be, whether that’s more financially responsible, a better partner, or a more courageous person, we can start making deliberate choices to get there. It’s an adventure that gives our life direction.

Rule 4: Notice That Opportunity Lurks Where Responsibility Has Been Abdicated

This is the most practical rule in the book. Opportunity doesn’t just fall into our laps, but by looking for problems that others are avoiding. Most want the easy way out, which means there’s a lot of useful work that goes undone.

Peterson says: Don’t Wait! By voluntarily taking on the tasks and challenges others are neglecting, we make ourselves invaluable. This applies everywhere, from our job to our relationships. We not only grow as a person, but also find authentic meaning that we could never get from an easy existence.

Rule 10: Be Grateful in Spite of Your Suffering

This rule is the most challenging and important of all. It’s easy to feel like a victim when things aren’t going our way. Peterson says that even in our darkest moments, there is something to be grateful for. 

Rather than pretending everything is fine, we can acknowledge the pain and still be able to see the small things that remain, even if it is just the fact that I woke up today. This practice doesn’t take away the suffering, but it builds the mental strength we need to get through it.

These rules remind me that a life worth living isn’t something you just get, but something you actively build. It takes a vision, courage to take on responsibility, and humility to be grateful for what you have.

If you spend even five minutes on social media platforms like Instagram or TikTok, chances are you’ll run into someone sharing “life-changing” money advice. These self-proclaimed financial influencers, or “finfluencers,” often speak with confidence, charisma, and a convincing air of authority. But here’s the hard truth: a ring light and a viral post don’t make someone a credible financial expert. 

At Verde Capital Management, we spend our days helping clients make smart, informed decisions about their money. We’ve seen firsthand how misleading advice can derail financial goals. So before you take advice from your favorite finfluencer, it’s crucial to approach their content with caution.

Not All Financial Advice is Created Equal

When it comes to managing your finances, one-size-fits-all solutions simply don’t work. Each person’s financial situation is unique. What works for one person might be disastrous for another. Yet, many finfluencers share overly simplified advice that could be more harmful than helpful. For example, advice like “just invest in XYZ stock” or “cut out all unnecessary spending and you’ll get rich” doesn’t account for the complexity of personal financial goals, risk tolerance, or long-term planning.

Check the Credentials and Qualifications

One of the most concerning aspects of the rise of finfluencers is that many of them have no formal financial qualifications. In fact, some lack any relevant credentials whatsoever. While their advice might sound reasonable, it’s essential to ask: Are they qualified to give this advice?

Financial advice should come from experts with appropriate training, certifications, and experience. Look for financial advisors who are Certified Financial Planners (CFPs) or who have other legitimate industry credentials. These professionals have spent years studying financial principles and adhering to industry standards to ensure that their guidance is responsible, reliable, and in your best interest.

One of the easiest ways to verify someone’s credentials is to see if they are a licensed advisor. Look them up on brokercheck.finra.org or adviserinfo.sec.gov to review their work history, licenses, and, most importantly, any disclosures such as customer complaints, arbitrations, regulatory actions, job terminations, bankruptcies, or civil and criminal proceedings.

Examples of Dangerous Advice

Unfortunately, there’s no shortage of bad advice being passed off as wisdom from finfluencers. Here are some examples of what you should watch out for:

• “Buy this stock now and get rich.” The idea that you can make quick money by purchasing specific stocks is appealing, but it often overlooks the importance of diversification, risk management, and long-term strategy. Betting everything on one stock can lead to significant financial losses.
• “Cut out all your ‘non-essential’ expenses.” While it’s true that cutting down on unnecessary spending can help free up money for savings, taking this advice to extremes can lead to burnout. Neglecting your personal well-being in an attempt to save money is not sustainable. Financial advice should balance saving and investing with maintaining a healthy lifestyle and well-being.
• “Make your child a millionaire by opening a Roth IRA for them.” Some finfluencers are promoting the idea of opening a Roth IRA for your child in an attempt to set them up for a financially secure future. While the idea of early retirement is tempting, this advice is flawed. Roth IRAs require earned income to contribute, and infants or children typically have no earned income. Without that, it’s impossible to contribute to a Roth IRA, making this advice not only impractical but you also run the risk of failing an IRS audit which could be costly. Instead of chasing unrealistic strategies, consider starting a custodial account or teaching children financial literacy to set them up for success when they’re old enough to earn an income.
• “Cryptocurrency is the future—buy now before it’s too late!” Cryptocurrencies can be a part of a diversified portfolio, but they come with extreme volatility and risk. The hype surrounding them can often overshadow the risks involved. Without a thorough understanding of how crypto works and how it fits into your financial plan, jumping into it blindly can lead to poor decisions.
• “You can easily retire in your 30s if you just live frugally.” While the idea of Financial Independence, Retire Early (FIRE) has gained popularity, it’s not a one-size-fits-all approach. For some, the extreme frugality required for FIRE might not be realistic, and without a strong financial foundation, it can lead to burnout or regret later on.

The Danger of Self-Taught “Experts”

Many finfluencers rise to fame based on their personal success stories. However, personal success does not automatically translate to universal expertise. Just because someone made money in the stock market or successfully navigated their own finances doesn’t mean they know how to help others do the same. Finance is complicated and requires a deep understanding of various elements, such as tax laws, investment strategies, estate planning, and risk management. They may have gotten lucky once or twice, but that typically doesn’t translate to a lifetime of professional advice.

The Problem of Conflicts of Interest

Another issue to be wary of is when finfluencers promote products or services they’re being paid to endorse. Some influencers receive commissions or perks for promoting financial products like credit cards, investment platforms, or stock recommendations. This introduces a conflict of interest, as their advice may be driven by personal gain rather than what’s truly best for you. It’s essential to understand their motivations before acting on their recommendations.

How to Spot a Red Flag

• They promise guaranteed returns or “can’t lose” strategies.
• They rely on emotional hype instead of real numbers.
• They dismiss professional advice as unnecessary.
• They offer one-size-fits-all solutions.

What Should You Do Instead?

Before acting on any financial advice, always check the source. Ask yourself:

• Do they have formal qualifications in finance?
• Are they providing advice that considers your unique situation?
• Are they transparent about any conflicts of interest?
• Is their advice too good to be true?

Social media can be a great place to discover new ideas, but it’s not where you should get your financial blueprint. Before acting on advice, verify the source, cross-check with reputable resources, and if possible, run it by a qualified advisor who understands your entire financial picture.

Your money deserves more than just trending tips. It deserves strategies built for your goals, your timeline, and your peace of mind. If you’re unsure where to start, reach out to a Verde advisor. While you’re at it, give us a follow on our socials: Facebook, Instagram, LinkedIn, and YouTube!

 

By Connor, Dylan, and Eva, Class of 2025 Summer Interns

In wealth management, we’ve always believed the most important innovations are those that
unlock access—better tools, broader opportunities, and ultimately, stronger financial outcomes.
Today, familiar platforms like Robinhood are pioneering just such a shift by enabling tokenized
ownership of private market equities.

While “tokenization” is most commonly associated with cryptocurrency, it actually refers to a
larger movement. This is a fundamental shift that could forever change how investors, both
accredited and retail, engage with private markets. And to appreciate where we’re going, it
helps to understand where we’ve been.

 

A Brief History: Public vs. Private Markets

Public markets have long been the backbone of individual investing. Since the Buttonwood
Agreement in 1792, where 24 brokers created the foundation for what became the New York
Stock Exchange. Public equities have offered transparency, regulation, and liquidity. This
framework allowed companies to raise capital from the general public, and in turn, offered
investors an accessible path to ownership in the American growth story.

But access came with trade-offs. Going public is expensive, time-consuming, and exposes
companies to intense regulatory scrutiny and short-term market pressure. In the 1980s and
’90s, being a public company was the gold standard. But over the last two decades, a shift
occurred: companies started staying private longer.

Here’s why that matters:

● In 1980, the average age of a company going public was 6 years. Today, it’s 12+ years.
● The number of publicly listed U.S. companies has fallen by nearly half since 1996.
● Much of the value creation now occurs while companies are still private, think Stripe,
SpaceX, Databricks, and OpenAI.

Private markets have historically been out of reach for the average investor. Minimums are high,
liquidity is low, and regulations have limited participation to institutions or accredited individuals.
This has contributed to growing inequality in who benefits from early-stage, high-growth
investments.

 

Enter Tokenization

Tokenization flips this model on its head.

At its core, tokenization is the process of digitally representing ownership of an asset on a
blockchain. In the context of private market equities, that means turning shares of a private
company into digital tokens that can be bought, sold, or traded—often in fractional amounts.

Here’s why this matters:

● Accessibility: You no longer need millions to invest in a private company. Tokenization
enables smaller transaction sizes and fractional ownership.
● Liquidity: Traditionally, private investments were locked up for years. Tokenized assets
can be traded on regulated secondary markets, improving exit options.
● Transparency and Efficiency: Blockchain technology enhances record-keeping,
reduces settlement times, and lowers administrative costs—benefiting both investors
and issuers.

 

Why Now?

The technology behind tokenization has been around for a while, but a few things have recently
aligned:

● Regulatory clarity is improving, with the SEC and FINRA outlining rules for digital
asset securities.
● Platforms like Securitize, tZERO, and INX have launched compliant marketplaces for
tokenized private equities.
● Retail Demand is surging. Investors want exposure to more than just stocks and bonds.

Perhaps most importantly, major players like Robinhood are moving in. Robinhood recently
signaled its intent to bring alternative assets, including tokenized securities, onto its platform.
The implications are massive: millions of retail investors could soon access pre-IPO equity in
companies they know and love.

 

The New Frontier of Investing

We’re entering a world where private markets start to look and feel more like public ones,
without forcing companies to sacrifice control or transparency. This is powerful.

To illustrate: Imagine buying a $500 stake in a tokenized share of a growth-stage startup. If that
company is later acquired or goes public, you participate in the upside—just like a VC. Better
yet, if you need liquidity before then, you may be able to sell your tokenized shares on a
compliant secondary market.

For investors, tokenization does two important things:

1. Levels the playing field—allowing more people to benefit from early-stage innovation.
2. Unlocks a historically illiquid asset class, enabling portfolio diversification with
potentially higher returns.

Of course, risks remain. Valuations can be murky, exit timelines are uncertain, and the
regulatory environment is still evolving. But make no mistake: the direction of travel is clear.

And this is an area where professional guidance matters.

At Verde Capital Management, we believe tokenization isn’t just another trend, it’s a
groundbreaking shift in how capital markets function, promising efficiency and opportunity.

If you’re serious about building long-term wealth, it’s time to start understanding how private
markets, and the technology transforming them, can fit into your strategy.

We’re here to help you navigate this change, ask the right questions, and start early. In this new
financial era, fractional access could mean full potential.

While we’re not offering tokenized private equity solutions to clients just yet, we are actively
exploring what’s next. At Verde, we’re committed to staying at the forefront of opportunistic,
forward-thinking strategies, and there’s more to come.

 

— Connor, Dylan, and Eva, Class of 2025 Summer Interns

 

Sources:
Harvard Business Review – It’s Time to Replace the Public Corporation (2021)

Tokenized Funds: The Third Revolution in Asset Management Decoded (2024)

How Tokenization is Transforming Global Finance and Investment (2024)

What are Real World Assets?

National Bureau of Economic Research, PitchBook, NVCA, RobinHood press releases

For this month’s Marc’s Book Club, I dove into a timeless classic that continues to resonate with readers today: The Richest Man in Babylon by George S. Clason. This book is made up of parables set in ancient Babylon, and offers key principles for acquiring wealth, keeping it, and making it grow. Despite being written nearly a century ago, and taking place in a timeframe over a thousand years ago, its lessons on personal finance are as relevant today as they were then. It emphasizes simple and actionable steps that can be applied by anyone.

One of the most powerful lessons from The Richest Man in Babylon is the principle, “Start thy purse to fattening,” which advises saving a portion of all you earn. This simple act of consistent saving is presented as the cornerstone of wealth accumulation. It teaches us to pay ourselves first, to build a proper financial foundation.

Beyond just mere saving, the book illustrates that “opportunity is a haughty goddess who wastes no time with those who are unprepared.” This concept highlights that what often appears to be “luck,” is in fact the result of preparation meeting opportunity. By continuously learning, developing skills, and having a bias towards action, we can position ourselves to seize valuable opportunities when they arise, turning potential into prosperity. 

Finally, The Richest Man in Babylon touches on the importance of planning for the future, particularly in protecting one’s accumulated wealth and providing for one’s family. In modern terms, this translates to the critical role of estate planning. Clason writes, “He must make a will of record that, in case God call him, proper and honourable division of his property be accomplished.” Estate planning through a will and trust ensures your assets are managed and distributed according to your wishes and provides security for your loved ones. This safeguards the wealth you’ve worked so hard to build for generations to come.

The Richest Man in Babylon is a simple read for anyone seeking practical advice on financial wealth building. It serves as a powerful reminder that the path to wealth is built on consistent discipline, thoughtful spending, smart investments, preparedness for opportunity, and diligent planning for the future.

The halfway point of the year is the perfect time to stop and reflect: Are you on track to meet your financial goals for 2025? A mid-year financial check-in helps you evaluate your progress, identify gaps, and make adjustments while there’s still time to finish strong.

Are you working toward paying off debt? Building your savings or investing more? Here are six actionable steps you can take right now to realign your finances for success.

 

1. Revisit Your 2025 Financial Goals

Action Step: Pull out the financial goals you set in January. Were you hoping to build your emergency fund, max out a retirement account, or reduce credit card debt?

Ask yourself:

• Are these goals still relevant?
• Have your priorities changed?
• Are you on pace to achieve them?
  

If goals no longer fit your situation, update them. If you didn’t set any goals, now’s a great time to start.

 

2. Review Your Budget (and Actual Spending)

Action Step: Compare your planned budget with what you’ve actually spent. If you’re not a Verde client with access to your spending analysis on the Verde Client Portal, use apps like YNAB, Monarch, or a simple spreadsheet to see:

• Where you’re over or under budget
• Categories that can be cut or adjusted
• Trends in discretionary vs. fixed spending
  

Look ahead to expected summer and fall expenses (vacations, back-to-school, holidays), and revise your plan accordingly.

 

3. Check Your Progress Toward Fully Funding Retirement Accounts

Action Step: June is a great time to see how close you are to maxing out tax-advantaged accounts like your 401(k), Roth IRA, and HSA (if eligible). Contributing more now can ease the pressure in Q4 and take full advantage of the year’s limits.

For 2025, contribution limits are:

• 401(k)¹: $23,500 (plus $7,500 catch-up if age 50+)
• Roth IRA / Traditional IRA*: $7,000 (plus $1,000 catch-up if age 50+)
• HSA²: $4,300 for individuals, $8,550 for families (plus $1,000 catch-up if age 55+)
  

Check your YTD contributions in each account and increase your contributions if you’re behind or want to spread them out over the rest of the year.

If you changed jobs or paused contributions, make sure you’re still on pace to reach your targets.

Bonus: Funding these accounts early in the year means more time for growth, thanks to compound interest.

 

4. Review Your Tax Payments and Safe Harbor Status

Action Step: Check whether you’re on track to pay enough in taxes this year to meet IRS safe harbor rules, especially if you’re self-employed, have variable income, or had a big financial change (like selling property or receiving a bonus).

Underpaying your taxes during the year can lead to a surprise tax bill and penalties come April. The IRS expects taxes to be paid as income is earned, not just at year-end. To avoid penalties, aim to pay at least the safe harbor amount.

What to do now:

• Pull your latest pay stubs or income reports
• Look at your YTD federal and state tax withholding or estimated payments
• Compare those totals to your projected safe harbor amount

If you’re behind, now is a great time to adjust withholdings or increase your next estimated payment (due September 15).

Not sure how to find your safe harbor amount? Refer to our YouTube video to find out. 

 

5. Check Your Credit and Debt Strategy

Action Step: Get a free credit report at AnnualCreditReport.com. Review it for errors, and make a plan to pay down high-interest debt.

Bonus Tip: Try the debt avalanche or snowball method to tackle balances strategically.

 

6. Schedule a Financial Date With Yourself (or a Verde Advisor)

Action Step: Put a 30-minute “money check-in” on your calendar this month. Review your progress, check off the steps above, and decide what needs attention next.

If you feel stuck or want more guidance, reach out to a Verde Advisor for help or just to have a second set of eyes on your situation.

Taking 1–2 hours this June to check in on your finances can help you make smarter decisions for the rest of the year and avoid surprises in December.

 

Remember, financial planning isn’t a one-time event, it’s an ongoing process. The good news is, you don’t have to do it alone. Use this guide as your starting point, and if you find areas where you’re uncertain or want a second opinion, consider reaching out to a Verde Advisor who can help you create a clear, customized path forward.

You’ve still got half the year left, make it count!

 

¹ Source: https://www.irs.gov/newsroom/401k-limit-increases-to-23500-for-2025-ira-limit-remains-7000
² Source: https://www.irs.gov/pub/irs-drop/rp-24-25.pdf

Imagine a world where you are genetically pre-engineered, do not have a family, and never face any personal hardships or difficulties in your entire life. This is the exact dystopian society Aldous Huxley created in his classic novel Brave New World. I chose it for this month’s read for three reasons. First, I wanted to branch out of my comfort zone into a fictional novel. Second, it came highly recommended to me as a classic. Finally, the quote featured on the back of the book caught my attention: “I don’t want comfort. I want God. I want poetry, I want real danger, I want freedom, I want goodness.” 

 

Brave New World takes place roughly 500 years into the future where all remnants of current life, such as books, art, and knowledge of history has been destroyed by the ruling elites and forgotten about by the common citizens. The goal of the current elites is to create a stable society where pain and suffering are essentially eradicated, and all conform to what is perceived best for the collective. There is no individual choice, because if left to their own devices, people will make sub-optimal decisions that lead to pain, loss, and disorder. It is not until the introduction of a character from outside the society, who visits and lives within it does anyone begin to question if this is really how everything ought be.

 

A key area of exploration in the novel is true happiness, which is something the citizens in the society lack. Rather, emphasis is placed on doing anything to achieve temporary happiness or to suppress negative emotions. There are no human connections, striving for excellence, or conversations seeking truth. Instant gratification at all times is desired, no matter the action taken to get it. Huxley does an excellent job of illustrating the absurdity of the actions of the characters, while at the same time causing the reader to reflect on areas in their own life that they might be neglecting and choosing the easy way out.             

 

While the novel focuses on personal life satisfaction and desires, connections can be made to people’s financial actions as well. Are we sometimes too quick to seek superficial comfort by frivolous spending and overconsumption? Do we fail to plan for both the present and the future, instead turning a blind eye to our finances and hoping to just wing it? Do we get caught up in what we have always done, even if it continues to be detrimental to our financial and even personal lives?

 

Ultimately, Brave New World challenges us to consider whether a life devoid of struggle is truly a life worth living, urging us to embrace the necessary discomforts that lead to genuine freedom and growth in every aspect of our lives.

Welcome back to Marc’s Book Club! Each month, I read a new book of my interest and share my thoughts and insights – whether it is personal, financial, or both. This month’s read is The Psychology of Money by Morgan Housel, which dives into how our behaviors and beliefs shape our financial lives and decision-making. Money plays a large and unique role in all our lives. Yet, according to a 2022 Junior Achievement Survey, 80% of teens say they wish they were taught more about money management in school. While learning the basics of saving, credit, and investing is essential, even more important is developing a healthy mindset around money. Money is simply a tool to do the things we love doing, with the people we love the most. In The Psychology of Money, Housel dives into different behaviors that lead us to make flawed decisions with their money, and ways to build healthier habits and mindsets.

 

One of the most powerful lessons of the book  is that we all have different goals when investing, saving, or spending – which means everyone has a different journey with their money. Yet, we often assume that our ‘next-door neighbor’ has the exact same goals as we do when investing. This is when problems arise. For instance, the ‘next-door neighbor’ might brag about a 10x return they made on a speculative investment in a short period of time. This can easily trigger a sense of FOMO for us. What is often overlooked is that we already have a rock solid plan in place to reach our financial goals, and investing in such a speculative investment for a quick return would lead to unneeded risk and potential financial ruin. Housel eloquently says: 

“few things matter more with money than understanding your own time horizon and not being persuaded by the actions and behaviors of people playing different games than you are. The main thing I can recommend is going out of your way to identify what game you’re playing. It’s surprising how few of us do. We call everyone investing money “investors” like they’re basketball players, all playing the same game with the same rules. When you realize how wrong that notion is you see how vital it is to simply identify what game you’re playing.”

 

Housel’s idea of ‘the game’ is crucial. By constantly trying to keep up with our ‘next-door neighbor,’ we lose sense of what is most important to us, and stop playing the financial  ‘game’ we want to win at. Having an investment plan rooted towards achieving our own goals is most important.

 

Another key takeaway is the difference between gambling and investing. Housel recalls, “A friend of mine makes an annual pilgrimage to Las Vegas. One year he asked a dealer: What games do you play, and what casinos do you play in? The dealer, stone-cold serious, replied: “The only way to win in a Las Vegas casino is to exit as soon as you enter.” That’s gambling: there might be a few times where you win big, but more often than not you leave even or down. Investing, on the other hand, is like being the casino, or ‘the house.’ Some days are down, most days are up, and over time, the house grows stronger and always wins. Just like the casino, balancing short-term fluctuations with the long-term success of the markets is the optimal way to build wealth.

 

Lastly, Housel writes about the importance of viewing market volatility as a fee, not as a fine. Investing is inherently risky, and the only way to receive heightened investment returns over long periods of time is to accept some level of risk. When markets have volatility, like what we have seen so far in 2025, many investors retreat to cash because they do not have the tools and proper mindset to deal with short-term pain. Housel writes, “Market returns are never free and never will be. They demand you pay a price, like any other product. You’re not forced to pay this fee, just like you’re not forced to go to Disneyland…The volatility/uncertainty fee—the price of returns—is the cost of admission to get returns greater than low-fee parks like cash and bonds.” The key to investing is keeping a long-term mindset, and embracing uncertainty and volatility as the price to achieve higher investment returns.

 

The Psychology of Money is a must-read for anyone interested in understanding the why behind our  financial choices. Recognizing where we are already excelling, as well as acknowledging where we can improve, is key to moving forward in a positive way. Most importantly, the book encourages you to figure out what game you’re playing—both with your money and in your life—and to take deliberate steps towards winning the game.