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Several months ago, I reviewed Wealth Your Way: A Simple Path to Financial Freedom by Cosmo DeStefano, a financial strategist, retired CPA and fellow Kiplinger.com contributor.
The book’s central idea is that financial freedom is achievable through simple, consistent habits, not just a high income. Building wealth and staying out of financial trouble result when we maintain those habits and behaviors — instead of chasing get-rich schemes.
I’m pleased that sales of Wealth Your Way have been robust. After my article ran, I heard from readers who felt that, with today’s economy and political situation, most people are just not going to ever get ahead.
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If you’re feeling that way, what book should be delivered to your door next? I would recommend this antidote to that pessimism: The recently published How to Get Rich in American History: 300 Years of Financial Advice That Worked (& Didn’t) by historian Joseph S. Moore, who teaches American History at Kennesaw State University in Georgia.
When I began reading this book, I just could not put it down. Moore makes America’s financial history jump off of the pages, bringing life to history, placing you right there — when great and terrible things were happening. The stories read like they could be fiction, but they are not.
We learn that speculators and con artists have been present from the beginning days of our country. While failed schemes are depressing, Moore consistently shows that the very essence of the American character is the persistent belief that tomorrow can be better than today.
He is passionate about finance and how it shaped our country and believes that by understanding its history, we will be better able to avoid the investment decisions that harmed so many across three centuries.
I interviewed Moore via Zoom and was left with the feeling that if I were a student at his university, I would take every course he teaches.
The deeper I got into How to Get Rich in American History, the more it became clear this book is the ideal companion to DeStefano’s Wealth Your Way.
Here’s why: Moore explains the origins of American concepts and goals regarding wealth from the earliest years of our country , while DeStephano serves as a GPS guide to achieving financial independence today.
History provides key insights into the present
If anyone thinks there was a time when people never went to bed haunted by debt, certain that the investment they’d made would pay off handsomely, well, Moore pours cold water on that myth.
We have always dreamed of prosperity while being stalked by speculative manias, economic uncertainty on a national level and panic over money — not having enough and seeking a quick fix.
You know the saying, “The more things change, the more they stay the same.”
Moore shows how Americans have dealt with identical temptations generation after generation: Overconfidence, greed, the belief that real estate values always go up (until they don’t) fear and despair during market crashes.
We had the Colonial land speculation, railroad booms, the roaring 1920s. Every era of American history had financial prophets with “you will make a killing” opportunities.
Before the Global Financial Crisis in 2008, Wall Street argued that bundling subprime mortgages into CDOs (collateralized debt obligations) diversified risk. Experts claimed modern financial engineering had ended the boom-and-bust cycle. The mantra was, “This time, it is different.”
We all know what happened after that.
Moore points out that when investors believe “this time, it is different,” logic and clear thinking fly out the window.
Yet, following each crisis, we have found a path to prosperity.
“There is something in our hearts, in our souls, something so positive and unique to America,” Moore told me. “No one has to make America great again — it is and has always been great!”
Especially valuable for younger readers
Many of today’s young adults are living a financial nightmare: A terrible job market, excessive student loan debt and significantly higher prices. Plus, the American dream of owning a home seems shelved for many of them, possibly permanently.
Moore reminds us all that virtually every generation dealt with the unexpected: Frightening economic challenges, depressions, bank runs, recessions, and wars. Yet, we’ve survived them all. We will survive AI, as well.
When it comes to juggling the financial tug-of-war each of us faces going to the supermarket — can we afford this? Do we need it? — DeStefano’s guidance shows us a path out of the darkness by focusing on sound, repeatable financial habits, emotional discipline and long-term planning.
Both authors make a strong case to not fall prey to self-anointed financial gurus making predictions that must be acted on now.
Common sense
Ask any bankruptcy lawyer, “What gets a lot of people in trouble?” They will say that, often, it is a desire to impress neighbors, romantic interests, anyone and everyone with how “successful” they are.
Meanwhile, the expensive cars might be leased, and luxury items might have been bought on credit cards that are maxed out — all is for show.
Both authors make a case that financially successful people understand that more is less. Some of the wealthiest people in the country live in modest homes that they own, drive cars that are paid for and have something that money can indeed buy: A good night’s sleep.
With How to Get Rich in American History and Wealth Your Way on your nightstand, you could be headed for some sweet financial dreams!
Dennis Beaver practices law in Bakersfield, Calif., and welcomes comments and questions from readers, which may be faxed to (661) 323-7993, or e-mailed to Lagombeaver1@gmail.com. And be sure to visit dennisbeaver.com.
