For some time now I have planned on opening a page about the books I read. If you know anything about me it’s that I read a lot of books. Especially when no one is telling me to read it. Mostly I’ve dabbled in: psychology, law, philosophy, religion, and most recently investing. So what I’ve envisioned is a simple set up- picture of the cover of the book, and a personal reflection of the book. Maybe why I read it, what it said, what I thought about it… etc. Who ever thought I’d make myself write book reports??
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So I want to learn something about personal finance and specifically investing for a return. I foresaw this as a skill that will help me throughout myself directly (a financial gain) and indirectly (simply more careful and savvy in the world). I never thought I’d earn millions from investing, but rather provide a safe smart way to save for retirement (Roth IRA) and earn a return on my savings for a bit of extra cash along the way (stocks). Anyways, so I looked around the capital-w Web and saw much high praise of the Book Rich Dad, Poor Dad (Barnes and Noble or Amazon link). It was always number one or two on the ‘books to read before you start your financial life’ type lists. Everyone said it’s a great motivator and blah blah. To be honest I was disappointed. I had a roommate that basically mapped his life after this book and was in a word not-impressive. He wasn’t going to college, cycled through entry level jobs like no other, and didn’t seem to be going anywhere (especially without a car). But by golly did he adhere to this book! He had crazy ideas like college is a waste of time, and it brainwashes you to blah blah… I thought he was nuts and I think I’ll find him living in a box on my 300 acre lawn someday. (ha!).
Anyway, so about the book. I read it. And there were parts where it was what I thought it was (bleh), but he did have a few hidden good principles in there. Hidden. Hey, the Lord told Joseph that the Apocrypha has some truth to it that can be discerned by the spirit. That’s what I had to do with this book. Wheat from the tares. On the downside, he does make higher education seem like a bad idea. Ex: while specializing in a field does earn you more money, it also puts you in a tight spot because what if you lose your job or something? Where else are you going to find a company that needs a professor that knows some dead unknown language? Another failure of the book- early on in the book he states his dislike of the word ‘greed’ and replaces it with ‘desire’. So whenever he talked about his greed/lust for mammon, I mean money, it is really just a harmless desire for money. Get it? Me neither. Now don’t get me wrong, I don’t think money is the root of all evil (women are), money can be a very very good thing. I wish we had more wealthy powerful Mormon families to influence society. However, the author makes it sound like the acquisition of money is the pinnacle of life. Several times he reiterates that it is detrimental to instruct kids to ‘go to school, get good grades, go to college, then find a good stable job with good security and you’re set for life’; I do not feel that it is detrimental, but perhaps incomplete.
Now, where I agree with him– it’s true that schools train you how to do your job and essentially how to make money, but fails to show you what to do with your money. The author calls knowing what to do with your income financial intelligence. I agree with him and actually find the ideas refreshing. He explains that you don’t need to make 100k+ a year and stash it in your mattress to live a comfortable life. An average person can do it if they have financial intelligence. I guess it’s like the parable of the talents: you’re given one talent and you multiply it- don’t bury it! It’ll never grow to become more! Well same with money. If you properly utilize your money in smart investments you’ll receive a nice return that will supplement your life. Example: If you’re getting 80,000/year and you just spend every penny of it, it may seem like you’re living well, but you’ll have no savings and are literally working for your paycheck. That’s how 99% of the population lives. Instead, you can live within your means (GASP! I know), and make your savings work for you. The author himself dealt in real estate. He’d basically flip properties. Sometimes the deals were a bit too shady for my comfort, but the principle was there. Anyway, the principle is that once you get your hard earned money (paycheck), instead of blowing it all on trips, buying a boat, house that’s too expensive (expenses and liabilities that will eat it all away on your monthly bills and so forth) you can invest in some sort of value producing vehicle (stocks, mutual funds, company, land that will appreciate in value, buy a condo– something that will increase in value and/or throw off some cash like a condo).
… I think there’s more about this book I wanted to say, but I’m kinda watching a Law & Order episode and it’s getting good. Anyways, my final thoughts about the book. Was it motivational? Yes, I believe it was. It’s a quick read and I recommend it. There is a lot of things about it I don’t approve of, but after shoving the crap off and washing it down a bit, there are some principles under there that are simple but good ideas. Reminded me of “The Richest Man in Babylon”, another book I recommend and will be re-reading sometime to review later. Ok, that’s about all for now.
and a heads up– right now my 2 pleasure books are:
and
Both very good books. I’ll finish the Investment book first. So i’m reading one investing book and one law book so that depending on my mood I’ll pick up one or the other. I think I should make a list of books I want to read and ask for more suggestions. (Of the top of my head, The Richest Man in Babylon (a fast read), the brothers Karamazov (which I already purchased…). Books are fantastic!!
