- 1. Live on Cash for 2 Weeks
- 10 Best Finance Books for Women
- 7 Reasons Why Financial Education Is Your Best Investment
- If You Think Investment Education Is Expensive, Just Try Ignorance
1. Live on Cash for 2 Weeks
Instead of focusing on money, it encourages you to focus on how many hours of work you must do in order to buy the goods and services you want. This way, you can calculate what things are really costing you. Recommended by reader Peace Mitchell, this book introduces you to several women — Pimsleur included — who have successfully built their own multimillion dollar businesses.
Chatzky lays out 90 straightforward wealth-building rules that help remove the stress associated with money. Follow this advice, she says, to build the wealth and financial stability you crave. It approaches the subject in a straightforward, no-nonsense style that resonates with readers. Perhaps one of the best-selling personal finance book is the Rich Dad, Poor Dad , written by American author, investor and motivational speaker Robert Kiyosaki.
- 6 Principles of Financial Success: Lessons from Rich Dad, Poor Dad.
- 7 Key Reasons Why Financial Education Is Your Best Investment.
- 6 Principles of Financial Success: Lessons from Rich Dad, Poor Dad.
- "Sacred Success: A Course in Financial Miracles" by Barbara Stanny;
The book compares the two fathers: Here are the six major lessons discussed throughout the book: He wants you to work to let you learn how money works and how to have it work for you. But if you want to master how, first, you have to alleviate your fear.
10 Best Finance Books for Women
According to the rich dad, fear is the primary emotion when the subject of money is discussed. It keeps most people to stay in their job because they fear of not being able to pay the bills or not having enough money. Greed is the second; if you offer more money, they also increase spending. The rich dad believes that money without financial intelligence is money soon gone. This is why he stresses the importance of financial education.
Schools only teach people how to work for money. Which path will you choose? Who can you trust?
Each authority speaks as if there is one and only one right answer, yet each financial expert offers differing and often conflicting investment advice. It makes no sense! It drives me nuts when supposed financial experts speak in over-simplified, dogmatic statements as if they have the one right answer.
7 Reasons Why Financial Education Is Your Best Investment
Even the most basic investment ideas such as buy and hold stocks for the long term are too complex to be adequately explained in a media sound-bite or brief article. The reality is each item of conflicting investment advice above is partially true and partially false — depending on the situation. There are times when it makes sense to leverage up with good debt , and there are other situations where it can be equally correct to pay off existing debt. One reason financial education is necessary is to understand the subtle shades of gray hiding behind all the investment half-truths you hear.
How else are you going to process this information into profitable investment decisions? You must know when a conditional-truth is applicable and when it should be disregarded, because it can get you in financial trouble. For example, do you understand when buy and hold is a smart investment strategy, and when the risk is not justified by the reward? Why you need a wealth plan, not an investment plan. Do you know when to leverage yourself with debt to grow wealth, and when it makes sense to pay off debt?
What is the best wealth building vehicle — paper assets, business, or real estate — and why? Learning the assumptions and reasons behind investment half-truths is one reason why financial education is necessary. There are many different ways to invest profitably , and there are many sources where you can learn the information. Their investment advice is generic, but you need it personalized. Your job is to find it so that you can achieve financial security. What are the odds that a weekend investment seminar or week-long boot camp teaching one specific investment technique is going to be the right fit for your unique needs?
It makes no sense. One size does not fit all. When you find it and focus on it and persevere your success will blossom.
If You Think Investment Education Is Expensive, Just Try Ignorance
Each person has a unique gift to bring to the world, and financial success results from an investment plan that capitalizes on that uniqueness. How you retire early and wealthy is going to be different from everyone else you talk to or associate with. Therefore, the second reason for the necessity of financial education is so that you can learn enough about yourself and the various investment strategies in existence to develop a wealth building solution custom fitted to your unique skills, values, and resources, as we cover in our systematic wealth building course.
Everyone else has a conflict of interest. Greenspan also spoke about the need for Americans to better educate themselves about managing their finances and to promote greater financial education for children in the school system. You must learn how to invest your money because no one will ever care about it as much as you do. Nobody else is making financial decisions in your life with zero conflict of interest except you. You are the only investment advisor for your portfolio that solely has your best interests at heart.
Avoiding conflicts of interest by being skilled enough to sort investment fact from fiction is the third reason why financial education is necessary. Many people want to believe their advisors will take care of the big financial issues like retirement, college savings, and wealth planning for them. You decide which investment expert to hire , and you decide which investment to buy.
None of these are a reliable prescription for investor success. Anything less is irresponsible. Prioritizing your financial education is how you become self-responsible for your financial future. Because there is nothing more financially dangerous than a million dollars worth of investment decisions being made with a thousand dollars worth of financial intelligence.
Your financial intelligence acts as a ceiling that limits the growth of your wealth. Your return on investment should improve as you learn how to invest more consistently and control losses when the inevitable mistakes occur. That translates into more dollars in your pocket and greater financial security. A little known fact about financial intelligence is it grows and compounds just like money.
The effect is multiplicative — not additive. Each new tidbit of information connects to all the other knowledge which multiplies. Your goal should be to make regular deposits every week into your financial intelligence account, just like you make monthly deposits into your investment accounts. Financial education is like an annuity.