Book Summary:
Escape the rat race and find out what the wealthy teach their children that other parents can’t.
Related Book Summaries:
Mindset – Carol Dweck – Book Summary
7 Habits of Highly Effective People – Stephen Covey – Book Summary
Quotes:
The single most powerful asset we have is our mind.
People who avoid failure also avoid success.
Book Summary Notes:
- Most people will spend their lives working for everyone but themselves.
- We still teach that you should go to school, study hard and get a good job. Today this is no longer the recipe for success.
- People who are ignorant of how to manage their finances are especially prone to making terrible financial decisions.
- Fear of losing money may be so powerful that it prevents you from doing the things you must, such as investing, with it. At the same time greed can push you towards spending as much of your pay check each week on frivolous things as possible. These upgrades and extra expenses are extremely effective at eliminating any potential growth in income you may receive from your salary.
- By building a knowledge of investments, risk and debt, you’ll be in a better place to make the correct financial decisions.
- Despite being so crucial we receive no formal training in managing finances in school. It’s not enough to be talented or capable you must also be financially literate to become wealthy.
- It becomes even more important then that we take it upon our ourselves to educate ourselves on these topics.
- Focus on working to learn instead of working to earn. The knowledge you gain in a job can sometimes, especially early in your career, be far more valuable than the money you are paid to do the job.
- Learn to take calculated risks to grow your money. Look into real estate and shares as a means of investing your money and helping it grow.
- You’ll experience many setbacks on your financial journey. Learn the lessons they are trying to teach you and also make sure you reduce the downside of any investments you make.
- Learn to pay yourself first. What’s your goal? Is it to save $100 a week? Then put that money aside first and pay your bills and live on the excess.
- Laziness and arrogance are your enemies if your trying to build wealth. Work hard and take calculated risks instead.
- Prioritise cash flow positive assets. That is invest in assets that put money back into your pocket.
- Learn the difference between an asset and a liability. Hint: one makes money the other costs it.
- Your profession will pay your bills. Your business will make you wealthy. Take time to build something outside of work and monetise it. Be sure to invest the proceeds and let this cycle repeat.
- Learn at least the basics of how the tax system works. Often certain strategies or activities are rewarded via reduced tax, such as depreciation on housing etc.
- The earlier in life you can start the greater the chance of success.
