Financial wisdom doesn’t have to be complicated. Sometimes, the most profound lessons are those presented in simple, relatable ways.
Vishal Khandelwal’s “The Sketchbook of Wisdom” exemplifies this principle by blending timeless wisdom with practical insights and colourful illustrations. This book has resonated with readers worldwide, including Morgan Housel (the author of The Psychology of Money), for its ability to distil life’s complex truths into clear and actionable advice.
What’s The Sketchbook of Wisdom About?
Khandelwal, a respected financial thinker and founder of Safal Niveshak, combines wisdom from philosophers, investors and thought leaders in The Sketchbook of Wisdom. The book’s structure revolves around five core themes:
#1 First Principles
These are the fundamental truths or building blocks of any field of knowledge. In this section, Khandelwal explores how understanding and applying first principles can simplify decision-making and help us solve problems.
#2 Foundational Virtues
Traits like kindness, forgiveness and being grateful are emphasised as essential virtues for success and contentment in life.
#3 Personal Liberation
This section focuses on achieving freedom—not financial freedom, but inner freedom.
#4 Wealth Creation
Drawing on the principles of basic personal finance, Khandelwal explains how to grow and protect your wealth sustainably.
#5 Decision-Making
The final section underscores the importance of sound judgment and avoiding cognitive biases that can cloud our decision-making abilities.
Together, these themes make the book more than just a guide to investing; it’s a guide to living well.
Five Key Lessons We Loved
While every chapter brims with wisdom, here are five lessons from the book—one from each theme—that particularly stood out to us.
#1 The Real Meaning Of Life
Khandelwal shares with readers about George Mallory, possibly the first man to summit the mountain before Edmund Hillary and Tenzing Norgay did. When asked about the use of climbing the world’s highest peak, Mallory replied, “Because it’s there”.
Similarly, asking “What’s the meaning of life?” sounds serious. However, it’s an important question and the answer is not hard to understand. The meaning of life is what makes us feel alive. It can be writing, mountaineering, dancing, or simply helping others. It can be as simple as that. As Mallory said, “We do not live to eat and make money. We eat and make money to be able to live. That is what life means and what life is for”.
This lesson is particularly relevant to Singaporeans caught up in the relentless pursuit of material success. Instead of focusing solely on career milestones or financial goals, we’re reminded to find joy in the journey and pursue simple things that make us feel truly alive.
#2 The Remedy For Most Of Our Suffering
“Acceptance” might sound simplistic, but Khandelwal makes a compelling case for its power. Much of our suffering comes not from external circumstances but from resisting reality. Learning to accept what we cannot change can bring peace and clarity. Acceptance is not resigning to a life of just putting up with things. It simply accepts the truth and allows things to be as they are. Sometimes, we cannot change reality, even if we want to.
One way to practice acceptance, as discussed in the book, is to step back and look at the previous episodes of suffering you had in your life. Write it down and assess what happened after your journey through those episodes. Most likely, you would have taken away lessons of growth and improvement that came with those “sufferings”.
In the realm of investing, consider the unpredictability of the stock markets. Instead of agonising over factors beyond your control, such as the macroeconomy, focus on what you can control —like sticking to a disciplined investment strategy and not panicking during a market turmoil. This lesson applies equally to life’s personal challenges, reminding us to cultivate resilience and grace under pressure.
#3 The Only Scorecard That Matters
This idea is about evaluating your life based on your own values rather than external validation. Khandelwal encourages readers to prioritise an “inner scorecard” over societal benchmarks of success.
As the author puts it:
“Maintaining an outer scorecard means being concerned by how the world sees you and thinks of you, and then acting according to that. Inner scorecard is intrinsic. It defines who you are at the core of your values and beliefs. When you live with an inner scorecard, you focus on being the most authentic version of yourself and doing the right things instead of what other people think you should do.”
In a society like Singapore’s, where comparisons are rife — whether it’s where you live, the car that you drive, or the annual salary that you earn —this is a powerful reminder. Living authentically, aligned with your personal principles, brings greater fulfilment than chasing accolades or keeping up with the Joneses.
#4 Believe In The Magic Of Compounding
Compounding, often called the eighth wonder of the world, is a central tenet of wealth-building. The concept simply talks about how interest earns interest to grow our money over the long term. Time is a powerful ally when it comes to compounding. Khandelwal also explains how the benefits of compounding extend beyond finances to areas like habits and relationships.
For everyday investors, this lesson underscores the importance of starting investing early and staying consistent. Whether you’re investing in the stock market or nurturing a passion, small efforts today can lead to exponential returns tomorrow.
Read Also: 5 Reasons Why You Should Top-Up Your CPF Special Account (SA) During This Year-End
#5 You Control Much Less Than You Think
This lesson from Khandelwal is a humbling yet liberating truth: our control over life’s outcomes is actually limited. Control is an illusion, just like how we can’t control the results of chance events like rolling of a dice or toss of a coin. Recognising this can reduce anxiety and improve decision-making.
Take investing as an example. Market volatility, economic cycles, and geopolitical events are beyond any individual’s influence. What you can control, however, is your reaction—like maintaining a diversified portfolio and avoiding impulsive decisions.
This mindset shift encourages readers to focus on efforts rather than outcomes, fostering a healthier relationship with uncertainty. The earlier lesson on acceptance helps us with releasing control as well.
Why Should You Read “The Sketchbook of Wisdom”?
Life in Singapore can be fast-paced and demanding. This book offers a refreshing pause, encouraging you to reflect on what truly matters.
Khandelwal’s engaging writing style and colourful illustrations make it an easy read, and his insights are applicable to people from all walks of life – whether you’re a young professional just starting out or a seasoned investor looking for a fresh perspective. Remember, building a fulfilling life is a marathon, not a sprint. The Sketchbook of Wisdom equips you with valuable tools and timeless wisdom to navigate the journey – one thoughtful step at a time.
Read Also: Atomic Habits: An Easy & Proven Way to Build Good Habits & Break Bad Ones By James Clear
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