Introduction
Money Wise by Deepak Shenoy explores various strategies for wealth creation, highlighting key financial principles to follow and pitfalls to avoid. This article provides an honest review of the book Money Wise. Deepak Shenoy, CEO of Capitalmind, a SEBI-registered portfolio manager overseeing ₹500+ crore in India’s market, frequently shares insights on platforms like ET Now, CNBC TV18, Business Standard, and Moneycontrol.
Key points of the book
- The book spans 254 pages across five chapters.
- The book explains few important lesson for wealth creation.
- Let the money compound – Compounding is considered as 8th wonder of the world. Compounding can do miracle however the most important asset for compound is time, if you allow time to compound your money, you could see the miracles.
- Money is made largely when you sleep – Most of your big money doesn’t come from working extra hours or doing more active jobs. Instead, the largest part of wealth comes from things that keep earning money automatically, even when you’re sleeping, on vacation, or doing nothing at all.
- You don’t need that much money to make money – The old saying “it takes money to make money” is half-true, but mostly an excuse. You don’t need to already be rich or have a big pile of cash to start building wealth. What really matters is : Knowledge, Time + effort, Consistency, Smart choices.
- Focus on earning money, Not returns – When building wealth (especially early on), prioritize growing your income (salary, side hustles, business, skills) way more than obsessing over investment returns (like chasing 15–20% vs. 10%).
- When you have enough money, think about allocation – Once you’ve built enough wealth (your income is solid, basics are covered, and you have surplus), stop obsessing over just making more and start smartly dividing (allocating) your money into different “buckets” or purposes.
- Plan for the absolute necessities, such as Retirement – First priority in allocation: Secure the non-negotiable, must-have future needs — things you cannot afford to run out of, like; Retirement, Children’s education, Health/emergency buffers, Other basics that protect your family/lifestyle if income stops.
- With the rest money, enjoy your life – Secure the floor first (necessities = covered forever). Then the extra money is freedom money. Don’t keep stacking more and more forever out of fear. You’ve already won the hard part. Now enjoy the prize.
- Let the money compound – Compounding is considered as 8th wonder of the world. Compounding can do miracle however the most important asset for compound is time, if you allow time to compound your money, you could see the miracles.
- While the majority of personal finance books, blogs, and advisors pour all their energy into teaching you how to build wealth endlessly — chase higher returns, optimize every investment, cut costs ruthlessly, and stack up as much money as possible — Money Wise by Deepak Shenoy takes a refreshingly different and more balanced approach.Yes, the book walks you through practical steps to grow your money: earning more, letting it compound, starting small, prioritizing income over flashy returns, and allocating wisely once you reach “enough.” But it doesn’t stop at accumulation.
- In the pursuit of financial security, it’s easy to fall into the trap of endless saving and hoarding. Many people treat money like a scoreboard — the more you accumulate and the bigger the number in your bank or investment account, the “safer” and more successful you feel. But Money Wise by Deepak Shenoy flips this mindset with a powerful warning:Hoarding far beyond what you truly need for necessities can lead to greater lifelong regret than if you had saved modestly but lived more fully.
- This book thoroughly explains mutual funds, covering NAV, ETFs, market caps, sectoral, debt, hybrid funds, and types like direct, regular, growth, and dividend. You could refer the article to Understand Mutual Funds Investment.
- The unpredictability of life, brought into sharp focus by the pandemic, reminds us that preparing for the end is an act of love and responsibility, ensuring our loved ones aren’t left to sort through uncertainty.
- This book delves into the core principles of stock investing, examines the psychology of FOMO-driven decisions, and brings timeless lessons to life through in-depth case studies of real companies from the past.
- In this book/course, you’ll gain a clear understanding of key financial instruments: Guaranteed Return Plans, Unit Linked Insurance Plans (ULIPs), traditional Insurance Plans, and direct Stock Investing. You’ll also learn practical strategies for managing your stock portfolio effectively—including how many stocks to hold for optimal diversification, and when to buy, sell, or hold based on market conditions and personal goals.
- Five important ways you should avoid
- Asking your bank banker where to invest – Your bank relationship manager or “banker” is usually a salesperson, not a neutral advisor. They earn big commissions (sometimes hidden) by pushing products like certain mutual funds, ULIPs, structured products, or bank-linked investments. These often benefit the bank more than you — high fees, low real returns, or unsuitable risks.
- Going with the heard mentality – This means blindly following what everyone else is doing — friends, family, social media tips, WhatsApp groups, or “hot stocks” everyone is buying because “it’s going up.” Herd behavior creates bubbles (prices inflate on hype) and crashes (everyone sells in panic). You end up buying high and selling low.
- The great IPO – IPOs are often marketed as “once-in-a-lifetime” chances with huge listing gains. Media hype, grey market premiums, and FOMO make them oversubscribed. But many IPOs are overpriced (companies/founders sell at peak valuations), and post-listing they fall or underperform. Retail investors often lose money chasing the “great IPO.”
- Forgetting the invisible – Many people focus only on visible returns (“This gives 12%!”) but forget the “invisible” drags: high expense ratios, entry/exit loads, transaction fees, taxes, inflation erosion, or opportunity cost (what better you could have done with the money). These eat away at real wealth over time.
- The insurance trap – This is buying “investment-cum-insurance” products like endowment plans, money-back policies, ULIPs, or child plans sold as “savings + protection.” They mix insurance (high need) with investment (poor returns due to massive commissions, lock-ins, and charges). Real returns often beat fixed deposits barely (or lose to inflation), while pure term insurance + separate investing would give far better protection and growth.
- Asking your bank banker where to invest – Your bank relationship manager or “banker” is usually a salesperson, not a neutral advisor. They earn big commissions (sometimes hidden) by pushing products like certain mutual funds, ULIPs, structured products, or bank-linked investments. These often benefit the bank more than you — high fees, low real returns, or unsuitable risks.
- If you’re struggling to stay consistent with saving, embrace forced saving techniques, these automatic, “pay-yourself-first” methods remove temptation and discipline your finances, steadily building real wealth over time.
Conclusion
Money Wise by Deepak Shenoy is an insightful guide on mutual funds, stocks, and wealth creation, ideal for beginners. Experienced investors may find its content familiar. You could purchase this book on amazon.
Disclaimer: I express my own views in this article after reading the book, without intending to offend anyone. I do not sponsor or endorse anyone, and any resemblance to actual persons, living or dead, is purely coincidental. The mentioned link is an affiliate link, and purchasing the book through it is a great way to support me if you’d like to read along!
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