Know Yourself, Know Your Money Book Summary - Know Yourself, Know Your Money Book explained in key points
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Know Yourself, Know Your Money summary

Rachel Cruze

Discover WHY you handle money the way you do, and WHAT to do about it!

4.3 (227 ratings)
24 mins

Brief summary

'Know Yourself, Know Your Money' by Rachel Cruze is a personal finance book that empowers you to take control of your finances. With practical tools and advice, it helps you understand your money mindset and develop healthy habits to achieve financial success.

Table of Contents

    Know Yourself, Know Your Money
    Summary of 9 key ideas

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    Key idea 1 of 9

    Your view of money is shaped by what you learn about it as a child.

    Rachel Cruze’s friend, Amanda, has always loved to shop. For her, shopping isn’t just about finding great deals – it’s a sport.

    It gradually became more than that, though. Despite having a well-paying job, she regularly spent more than she was earning. By the time she was in her late thirties, her partner was growing increasingly frustrated with her financial behavior and her marriage was in trouble. Something had to give.

    After seeing a counselor, Amanda realized that her behavior was a reaction to growing up with extremely frugal parents – the kind of folks who save the bags from cereal boxes “just in case.”

    It turned out that overspending was Amanda’s way of rebelling against excessive thriftiness. This isn’t a unique experience – in fact, just about everyone’s relationship with money is shaped by their childhood.

    The key message in this blink is: Your view of money is shaped by what you learn about it as a child.

    Financial decisions aren’t made in a vacuum. Some factors, like how much you earn, are obvious. Other factors operate in the background, but they’re no less influential.

    As the psychologist and bestselling author Henry Cloud puts it, “How you’re glued together has everything to do with how you spend your money.” If you want to make better choices and improve your personal finances, you have to first understand why you handle money the way you do.

    That’s where the concept of the money classroom comes in. This is where you first became aware of the adult world of personal finance.

    All children learn about money in two different ways. The first is what their parents communicate verbally. The second is what their parents communicate emotionally.

    Different households create different kinds of classrooms. Some parents never discuss money with their children; some don’t talk about money at all. This creates a verbally closed classroom. Others are open – parents bring up issues like bills or investments at the dinner table.

    Emotional communication meanwhile can be positive or negative. In some households, children feel a sense of calm when financial topics come up. In others, money is associated with stress and anxiety.

    These variables interact to create distinctive classrooms, but thinking about your childhood experiences in this way can help you explore your relationship with money in the present. How? Well, let’s take a closer look at three common types of classrooms and the challenges that come from growing up in them.

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    What is Know Yourself, Know Your Money about?

    Know Yourself, Know Your Money (2021) tackles personal finance from a novel perspective. Rather than simply showing you how to create a budget or telling you to save more each month, it unpacks the psychology behind decision-making. If you want to improve your financial health, you have to understand why you make the mistakes you do. Get a handle on that and you can start changing your money mindset and build a better future.

    Know Yourself, Know Your Money Review

    Know Yourself, Know Your Money (2021) by Rachel Cruze is a book that offers valuable insights into understanding our relationship with money and how it impacts our lives. Here's why this book is worth reading:

    • With its practical advice and actionable strategies, it empowers readers to take control of their financial well-being.
    • By combining personal stories, research, and relatable examples, the book brings the content to life, making it easy to apply to one's own situation.
    • The book's engaging tone and relatable anecdotes make it an enjoyable read, ensuring that readers won't find it boring.

    Best quote from Know Yourself, Know Your Money

    Do not take your time, and do not be half-hearted! Get this $1,000 saved like your life depends on it.

    —Rachel Cruze
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    Who should read Know Yourself, Know Your Money?

    • Big spenders and the overly thrifty
    • Would-be savers in need of some motivation
    • Parents who want to teach their kids about money

    About the Author

    Rachel Cruze is a personal finance expert and author of New York Times best sellers Love Your Life, Not Theirs and Smart Money, Smart Kids. She’s the co-host of the Rachel Cruze Show, a vlog about money available on YouTube and Facebook, as well as the Rachel Cruze Show podcast.

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    Know Yourself, Know Your Money FAQs 

    What is the main message of Know Yourself, Know Your Money?

    The main message of Know Yourself, Know Your Money is the importance of understanding oneself and how it affects their relationship with money.

    How long does it take to read Know Yourself, Know Your Money?

    The reading time for Know Yourself, Know Your Money varies, but it typically takes several hours. The Blinkist summary can be read in just 15 minutes.

    Is Know Yourself, Know Your Money a good book? Is it worth reading?

    Know Yourself, Know Your Money is worth reading for its valuable insights into personal finances and self-awareness.

    Who is the author of Know Yourself, Know Your Money?

    Rachel Cruze is the author of Know Yourself, Know Your Money.