Originally Posted On January 31, 2016
As a part of my New Year's Resolution, I've decided to read one book relating to financial education a month. This month I was an unstoppable reading robot hell-bent on covering as much ground as possible. Due to my tenacity, I completed not one, not two, but three financial education books! Below are the titles and a brief review, as well as my recommendation.
Phi's January 2016 Update
Rich Dad Poor Dad: Great book! Reads very casually, like you were talking with a friend. Robert Kiyosaki's journey in seeking mentorship from a self-made financial success is invigorating and has a karate kid-esk feel to it.
Takeaway: The idea of "Don't think 'I can't afford it', think 'How can I afford it?"
The Millionaire Next Door: Very informative and gave great numbers, though getting a bit outdated. If you have already studied the subject of financial independence and have the general idea of "don't spend money on things you don't need" down, then this book will not benefit you at all, aside from giving you a good few debate points.
Takeaway: The equation for determining if you are 'wealthy'. It is (Age*Pre-tax Income)/10. If you have that amount or more, congratulations! I'm not there yet. It is worth noting that I believe this equation has in mind people who have already been working for some time. If you're new to the workforce (like myself) then I suggest thinking of how long it will take to reach the equation's result.
Recommendation: I don't recommend it unless you are very new to the subjects of financial independence and attaining wealth.
The Richest Man In Babylon: A very interesting read which follows a series of real, ancient characters who lived in Babylon when it had the reputation of being a city of wealth. It contains historical data emphasizing the importance of education and shows that attaining wealth hasn't changed over the course of the 3,000-something years in between our time and theirs.
Takeaway: Regardless of your beginnings, hard work and being intentional with your money will guide you to financial success!
Recommendation: Regardless of your level of familiarity surrounding FI and wealth, this is a good read! And a great bedtime story!
As a side note, for anyone wondering how my most difficult-to-reach goal is coming along, I'm currently a little over $800, or 2%, of the way there. Not to worry! This follows my expectations - this month has been consumed with expenses regarding the new house. I anticipate February's update to have much more punch to it! 😉
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