Book Review: The Alchemy of Financial Freedom — 5 Steps to Practice the Declutter-Your-Way-to-Wealth Method

Table of Contents: The Alchemy of Financial Freedom

Clear Out Your Space, and Your Mind Opens Up Too

Xiao Yin was once a shopaholic who transformed into a financial planning expert and organizing guru. After reading this book, it confirmed what we’ve been saying when discussing financial planning — the most important thing really isn’t how much money you have, but how free you are as a person.

Most people probably have at least a touch of “hoarding syndrome,” including the author herself in the past. But through a breakup, the process of reconciling with family, and clearing out her physical space, she transformed her mindset and became someone she genuinely liked better.

The core of this book is about “organizing.” Through the organizing process, you practice “letting go” (known in East Asia as “danshari” — the art of decluttering). By combining that process with distinguishing between “essential, needed, and wanted” when it comes to material things, and then integrating it with a financial planning workflow, clients can effectively carry out their financial plans. I think it’s a brilliant approach.

The “money management” portion also focuses on mindset rather than how to make piles of cash. It’s a book I really enjoy, because I’m also a firm believer in financial planning.

On Chapter 1: Transformation

Unpleasant Pasts Are the Best Fuel for Growth

Going through unpleasant experiences — failure, setbacks, or pain — can provide invaluable nourishment for growth. Every setback is a learning opportunity. Take my own experience: when I first entered the stock market, I went through cycles of big wins and big losses. When I was winning big, I spent recklessly. When I lost big, the winning days never came back — because the money was gone. But I didn’t give up on investing entirely or run away from it.

The Prerequisite: You Have to Be Someone Who Wants to Improve

Of course, all of this depends on being someone who wants to grow. If you’re willing to learn from past experiences and improve yourself, then those unpleasant memories will become fuel for your growth.

After her breakup, the author went on a major organizing spree, clearing her space and calming her mind. Although I’m not sure exactly how she ended up on the path to becoming a CFP (Certified Financial Planner) (the book doesn’t seem to mention it specifically), I firmly believe that wanting to become better usually means going through a rough patch first!

On Chapter 2: Shifting Perspectives

What Sets You Free Isn’t Money — It’s You

Many people make “money” the goal of everything they do. Making money a goal isn’t necessarily wrong, but to me, money is more of a “result.” The real goal should be the outcome of what you’re doing, not the money itself.

There’s a classic line from Attack on Titan:

“Every one of us, from the moment we are born, is free.”

What makes you unfree isn’t poverty — it’s yourself.

On Chapter 3: Changing Your Mindset

Time Is Your Greatest Wealth and Your Highest Cost

Imagine a bank that gives you 1,440 dollars every day

Suppose there’s a bank that deposits 1,440 dollars into your account every day. You can’t withdraw it, but you can spend it through investing or consumption. Of course, you can also choose not to spend it. But this bank has a special rule: no matter how much you’ve spent, at midnight the balance resets to zero and 1,440 dollars is deposited again.

For example, even if you only use 800 dollars today and 640 remains, at midnight the balance still resets, and 1,440 is deposited again the next day.

In this scenario, what’s your best strategy?

I think most people would say:

“Spend every dollar each day, investing it in the most valuable things possible, or at least in things that hold their value.”

But does something this good really exist in real life?

Actually, this isn’t a fictional story. There really is such a bank, and its name is: Time.

Every day you have 1,440 minutes, constantly resetting with fresh time deposited the next day. The only difference is that we often feel like we don’t have enough money, but we think we have plenty of time. So we don’t invest our scarce money, yet we waste our abundant time.

On Chapter 4: Renewal

Many people chase money wanting “more” rather than “enough.” In that case, you’ll find that your money will never be “enough,” and you’ll stay trapped in that “unfree” identity. Whether you’re enjoying it or just making the best of it, I can’t say. But if there’s never a day when you feel it’s “enough,” it’s hard to expect freedom to show up.

Further Reading

Lazy Da’s Conclusion

懶大

金融科技新創 CEO | 獨立財務顧問

“Those who cannot abandon anything will never be able to change anything.”

Just let it go!

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