Month: June 2015 (page 1 of 2)

Books that will change your life and make you rich

88% of the rich read daily while 67% of the rich watch less than one hour of TV per day. Want to know how many poor people read? 2%. These are a few of the eye opening stats that Thomas Corley found after interviewing hundreds of rich and poor people on their daily habits. His book, Rich Habits: The Daily Success Habits of Wealthy Individuals, is one of the best books on the habits of the rich and steps you can take to be apart of the 1%.

 

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When most people are done with their formal education, they think that they are done learning. I have seen this in many millennials that think that they now have the skills to go out and be successful and get rich. I was this person until three years ago. I thought I should be entitled to earning a good salary and  having an edge on someone without a degree. I thought that a degree meant success. This couldn’t be any further from the truth. A degree gets your foot in the door, but being a continuous scholar is what separates the average from the rich.

I read at least one book per month so I try to set aside time every night to get this done. These are some of the many books that have changed my life and taught me the steps to take on my journey towards financial freedom.

 

“How To Win At The Sport Of Business” by Mark Cuban

Mark Cuban is a badass. He is my all time favorite entrepreneur and one of the smartest businessmen in the world. He is also the star of the ABC’s hit show, Shark Tank.

Mark always offers practical money and life advice for millennials and his book, “How To Win At The Sport Of Business” is an easy read that will change your life. In this tiny book, which is basically just his blog posts, he talks about his personal experiences with life, business, and money.

He talks about how getting fired, being a bartender, and living with five other friends in a small apartment in Dallas helped give him a foundation for success.

If you think you have it rough, Mark takes you through his journey of many failures.

 

“Rich Dad Poor Dad” by Robert Kiyosaki

This book is a game changer. Robert talks about how he grew up with two dads (one was the father of his childhood friend), and their different philosophies on life and wealth. For me, this book really puts into perspective how people’s thinking can affect their ability to get rich.

“When you are young, work to learn, not to earn.” This is probably one of the best takeaways from this book. Too often do we see people that choose a job for the money or prestige. Millennials need to be in positions where they have the chance to be scholars and learn from the best. A high salary is great until you realize that you have just gotten laid off and have no idea who will pay you the same amount.

 

“The 4-Hour Workweek” by Tim Ferris

Tim Ferris is the ultimate entrepreneur that has become one of the biggest bloggers in the world and has three bestselling books. After graduating from Princeton, he realized that he did not want to work the typical 9-5 and wanted to make his own way.

In “The 4-Hour Workweek,” Tim teaches his readers ways to escape the typical 9-5 and live the life that you want on your own terms by using the same practices he does. He teaches his readers how to set up passive income, travel, use virtual assistance on small tasks, and how to outsource almost anything. He also has tricks on how to learn and read faster to save time for the things you enjoy. His blog also offers hundreds of resources for people that want to change their lives as well as a podcast where he interviews some of the top minds in the world.

 

“The Millionaire Next Door” by Thomas Stanley

There is a reason why this book has sold more than 3 million copies since it was published in 1996. This is an eye-opening book that talks about more than just how the rich are frugal.

Thomas Stanley’s extensive research of the wealthy guides us through the minds of the rich and not so rich. Thomas talks about how he has met with people with “average” salaries that have much higher net worth’s than medical doctors. He also outlines ways that rich parents ruin their children’s financial lives by creating dependency.

The book really creates a sense of awareness on what it really takes to be rich, and how there is sometimes no way of telling how much money somebody actually has.

 

“I Will Teach You to Be Rich” by Ramit Sethi

If you already know a lot about finance and money, you’ll probably want to skip this one. This is one of the best books for beginners that are just starting to get interested in learning about money and saving.

Remit Sethi is another guy like Tim Ferris that set out to be his own boss and take control of his life. He is a personal finance guru that has practical ways on how to save and spend money on things you enjoy.

His book, “I Will Teach You to Be Rich,” has a six week personal finance program designed for people in their 20’s and 30’s. This book is different than other personal finance books as Ramit gives specific recommendations on banks to use, investment platforms, and other resources that could be helpful.

If you want to change your life for the better, put down the remote and pick up one of these books!

 

5 Money Myths

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A few weeks ago, I wrote about dealing with money while in a serious relationship. I was hit with a lot of questions and comments about the post and people seemed to really like what I had to say so it got picked up by one of my favorite news sites for millennials, Elite Daily! If you didn’t have a chance to read it, definitely check it out.

Working in the financial services industry for almost four years now has allowed me to really examine how people act and what they say in certain situations. I have it heard it all from “I’m looking for very conservative investments like cd’s and real estate”(complete opposite), to “I wouldn’t want to be that guy (someone with a significantly higher income) because I would have to pay more taxes.” This guy would literally rather make less money because he does not want to pay taxes. Are you freaking serious? After hearing things like this, I not only question the existence of humans, but I also think about how many people don’t deserve to be rich. That isn’t supposed to sound harsh, and obviously there are MANY people in this world that deserve to be financially free and many people that would just like to have enough to feed their families, but there are people that don’t bother educating themselves about money while having every possible resource. This leads to having ignorant opinions on money.

There are an absurd amount of money myths out there that I would like to address. These aren’t in any specific order so they are all equally as important.

1. Credit cards are bad. This couldn’t be any further from the truth. Not only do credit cards offer exceptional bonus and reward programs, they help build your credit and track your spending. Do you want to buy a home or need a loan to start a business? You will need a good credit score and credit history to earn a competitive interest rate, which can be done through having and using a credit card. I charge EVERYTHING except my rent (in the process of convincing my landlord). I also wouldn’t be able to travel as much as I do if it weren’t for points. Here are 10 reasons to use your credit card.

2. Debt is bad. It is OK to have debt. Especially in times where interest rates are low (now). Let’s say you had $10,000 in savings and you wanted to buy a $10,000 car. You really want to use that money to travel or start a business but you’ve been having car trouble lately and really need to purchase a new vehicle. While the current auto loan rate on a used car is around 2.74%, your monthly payment would be about $179 while only paying about $142 of interest per YEAR. Are you telling me that you’d rather pay the full $10,000 now? No way! Get the loan and do something with the money that will pay big dividends in the future such as starting a business, traveling, or paying off other debt with higher interest rates.

3. I can afford it since I can afford the monthly payment. First off, this has absolutely nothing to do with myth #2. You are not cool for driving a BMW with a $500 car payment while you have to pass on a trip of a lifetime. You are also not cool for leasing a top of the line massage chair that was recommended to you by the salesman at the State Fair while having loads of credit card debt. There is nothing wrong with making monthly payments on something while making smart, calculated purchases. But all to often people make purchasing decisions based on what they can fork out monthly and that typically doesn’t line up with ones current situation.

4. YOLO. I had a friend call me this past Monday morning to tell me that he missed two flights out of Vegas because of how much fun he had so he had to rebook a new one way flight and book a hotel for another night. While he was telling me this, he said YOLO. I said, IDIOT. The problem with this statement is that you only live once but it could be for a very long time. People are not only living longer lives while having more expenses during retirement, but what a lot of millennials don’t realize is that your mindset and priorities change with time. This makes it harder to look back on the times where you used excuses for excessive spending on purchases through carelessness. I am all for having experiences and trying new things while you are young, but do it on the things you love and want to do.

5. My house is an investment. Uh, no. Buying a house can be a great decision for some, but unless you are buying homes to sell/rent as a business, your primary residence shouldn’t be considered an investment because homes are illiquid. According to Investopedia, illiquid is the state of a security or other asset that cannot easily be sold or exchanged for cash without a substantial loss in value. In basic terms, it can take a while for you to get your money and there probably won’t be a profit. For one, houses don’t always go up in value. Even if you sell for a much higher price, you typically end up with a loss if you count in all of the maintenance, insurance, and property taxes that you paid throughout the years. That’s if you even find a buyer!

These are just a few of the thousands of myths and money mantras people have. If you have always thought a certain way about money, don’t ignore what others have to say and don’t be afraid of educating yourself. It’s important to be a scholar on all things money as things are always changing with time.

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