What to expect from the book
This book helps to explain what money are and how they mean different things to people. The money are not even paper or gold but rather zeros and ones in banking systems. Those allows us to feel multiple things such as freedom, security, helping people in need, having a choice and/or feeling alive.
The book explains the various many concepts, provides real life stories from the most wealthiest people in the word and not only that. The one of the secrets provided in the book is to study other successful people (Ie. founder of the Vanguard Group, CEO of J.P.Morgan Asset Management, Charles Schwab and others!). So, what are you waiting for? Go and find a financial master and study what approach he have in regards to money.
Those that are successful as described in the book think of money as a game. And here I cannot agree more, it does not mean that person needs to gamble with money. No way! Never hazard with the money. Be instead more clever about them, figure out how the money system works, and use it to your benefit. And most importantly have fun with it. I just started learning, reading various books that started to open my mind. I now enjoy it more and happy to save up more as well, because I see the compound interest and how it can grow over a period of time. That gives me long term vision and interestingly enough, I have no need to spend much money as well.
I can tell you that after reading this book, it is not one of the motivational books only. It does surely help you motivated however it provides real-world stories from which you can benefit from.
Does the book really help?
My intention by purchasing and reading the book was to learn more tactics, apply them to my life and use them to my benefit. The main goal is to generate money that will pay my bills, so that I wont have to worry about it. I am not there yet, but seeing slowly progress upon taking a few actions described in the book. This keeps me motivated to read more books to learn from the best of the best!
7 simple steps
- Save and invest percentage of your income
- Become an insider
- understand how the system works
- know the rules before you enter the game! Do not allow them to take advantage of you!
- what you don’t know will hurt you, beware!
- understand the fees of the mutual funds – they are really bad for you, remember! Marketing sells them!
- learn about the power of compound interest/effect (this applies in most of the actions that we do in real life, for more about it I would highly suggest you to look up and if possible read the book named
Compound Effect by Darren Hardy)
- watch out for the hidden fees when investing
- do the math (most people do NOT do this simple step)
- Vanguard Investing (good decision) – sum of the many successful companies with very minimum fees 0.4 for example
- when you buy and sell, buy and sell, and repeat over, you are paying a taxes! Therefore loosing the money!
- Do not try to beat the market! Mutual funds will NOT the beat the market.
- Own index funds = own the market – the top 500 companies that have great returns (for example S&P 500), if they do not perform they are replaced by other better company
- index funds: 9.2% average compound rate
- mutual funds: 2.54% of average compound rate
- average vs. actual returns – actual returns are only thing you can spend money on!
- 401k – research the fees
- impact of fees can be huge! Remember that!
- 1% fees vs. 3% of fees can result into 77% difference in total gain, by investing the same value!!!
- compare the best 401k programs
- Learn ”under the hook” of your broker! Look for fees.
- Get the right fiduciary
- is the broker actually fiduciary?
Lessons learned and what actions I do
- Reinvesting dividends – to avoid or minimize the payment of unnecessary taxes and to maximize the growth of the investing even without me to manually invest additional money to the portfolio
- Invest into the index funds
- Automate investing into the index funds on regular basis
- Made a personal investment plan
- Shifted my mind of being a consumer in the economy and becoming an owner instead! (by owning stocks of the best companies out there in the market)
- Saving on things that do not bring me joy and instead investing them into what I can learn from, such as books or investing the money to build my wealth
- I do still buy things, even sometimes more expensive because I understand that the quality product will also last me longer instead of replacing cheaper things over and over more often!
- paying for certain things is not necessarily bad – you pay for the skill you don’t have such as doctors (unless you are a doctor). Paying for getting knowledge is good, as long as you can grow. For example, to invest in learning the “financial” language, meaning special terms in the financial world would help you better navigating and using the money in your own benefit, you would understand the words that translate into the additional fees, that you would normally not recognize! And that lack of knowledge will essentially just cost you more money, ouch!
- Investing in myself – reading the books more often, because as mentioned again in the book, I love the phrase “leaders are readers”. By reading you are learning from somebody who has dedicated so much time into research in order to deliver value in the world. This gives us a great advantage compared to somebody who does not read almost anything.
- Make rich portfolio aka do not put all of your eggs into one basket.
- when investing in individual stocks, remember to not put all of your investments into one single company to be protected against down-sides of the market. When you have a broad portfolio one stock down-side might be not even noticeable as others might go UP and compensate for the looses.
- Do more for others
- Give back ( mainly but not only to those who are in need )
- this year even though I started working on this task, I managed to perform twice the volunteering activity. I can say that afterward, I have felt so great and energized. I will definitely do this more often! Note, that you do not have to necessarily contribute money, if you do not have much, instead you can help with manual work. There are so many options!
Remember, I am not an financial expert, please be careful with any investments you do and make sure you learn about each of the actions more in depth on your own, do not listen others convincing you about the great benefits. Do not fall into the traps of marketing strategies that are being advanced more and more. Make your own research and become essentially an insider as described in the book!
For further references you can check reviews and details about this book for example under Amazon website directly:
I am not sure how about you, whether you have decided to read this book too or some other. I do personally feel inspired and motivated to perform more actions to build income for life.