Finance Book

Andrew Tobias. The Only Investment Guide You’ll Ever Need. Harcourt Brace, 1996. 221 pages. ISBN 0-15-600337-6.

Okay… really… who would have the gall to write a personal finance book and title it, “The Only Investment Guide You’ll Ever Need?” And, then go out and, well… write the only investment guide you’ll ever need. Andrew Tobias, that’s who.

In this book, now a classic personal finance tome, Tobias more than makes good on his promise. He covers a myriad of subjects and gives direct, clear and sound advice on each one. Sure, when the book was first published in 1978, Tobias didn’t anticipate ETF’s, ETN’s, or structured products, nor did he foresee day trading or the FOREX craze. Still, through it’s many revisions, it’s remained true to giving great basic advice to the nth degree. And, the best news is, the basics haven’t changed, nor, short of the apocalypse, will they.

In irreverent style, Tobias entertains throughout the book, while stressing getting your financial life in order by following these steps:

1) Living within your means

2) Saving

3) Minimizing your expenses

4) Paying off your credit cards

5) Having adequate life insurance

6) Taking responsibility for your money

7) Investing conservatively

Taking advantage of tax reduction strategies, and

9) Utilizing tax advantaged retirement accounts

Slightly beyond the basics, Tobias champions the equity markets by clearly conveying that equity markets outperform safer investments over long periods. But, here he still treads lightly eschewing stock picking for index investing through no-load mutual funds. Today, there may be better alternatives to no load funds, but I find it hard to argue with Tobias’ point: If legions of money managers can’t consistently beat the market, neither can the average investor.

Including only one short paragraph, as almost an afterthought, on how a business of your own may be beneficial is my only complaint about this book. Tobias sees business as a tremendous tax tool, but it can be so much more. It can be a hedge on inflation, supercharge your retirement, create a financial and personal legacy, and be your best investment by a long shot. But, hey, I guess that’s way beyond the basics.

Get this book, read it several times, and understand that financial success is neither magical nor mysterious. It is the natural consequence of consistently applying basic fundamentals. And, The Only Investment Guide You’ll Ever Need lays them out.

By: Gary Clement

‘A Man Is Not A Financial Plan’ by Joan Baker
Investing For Wealth and Independence.

Joan Baker has written this book with women in mind but her message is clear whether you are young or old, single or in a relationship, whether you have savings or not you can take control of your finances. Women are capable of so much, keeping a family functioning while holding down a job is no small task. Taking care of yourself is often on the bottom of the ‘to do’ list, however taking care of yourself financially is essential for your own and your families long term security.

Women need to create their own wealth, enough to survive independently, so that whether they have a man in their life or not they will be ok financially. A plan is needed, even if you have a high income that alone is not enough to grow wealth.

Joan demystifies the jargon covering areas such as budgeting, principles of investing, superannuation, diversification, and managed funds. She explains the emotion that drives the share market. Which, by the way, women are often more successful at conquering than men are. She explains the importance of making your money when you buy and how to borrow smart for investments.

She covers how to plan your investment strategy and how to decide what is the best investment for you. She also passes on some encouraging thoughts on taking action, for without action no amount of investment knowledge will help.

Joan has had twenty years experience as a financial coach and says the main thing she has learnt is that anyone can become financially free, but you have to know what it is you want and you have to want it enough.

By: Teresa Vidal

One of the most important books that I’ve read during the past year is T. Harv Eker’s Secrets of the Millionaire Mind. I want to review and share a savings plan that Eker shares in Chapter 14 called the Millionaire Mind Money Management Plan. Eker begins his chapter with these words:

Rich people manage their money well, Poor people mismanage their money well.

It’s an excellent chapter, and I’m going to share with you a summary of the financial management plan that will set you on the right path to building wealth. It’s important in all things resulting in success that you take action. So, no matter what you can start with, even if it’s a dollar a month, you must take action and begin to manage your money.

Some people say, “Well, when I get ahead financially, I’ll manage my money.” That’s a poor person mindset! The millionaire mind begins to manage now, because if you can manage a little, then you’ll begin to manage a lot. I was SO into this way of thinking in the past. When I turned it around and began to manage money, I started to get wealthy!

Before I share the money management plan, here are some wealth principles from the chapter and that Eker teaches at his Millionaire Mind Intensives.

Until you can handle what you’ve got, you won’t get any more! The habit of managing your money is more important than the amount. Either you control money, or it will control you.

So, how exactly do you manage your money? Here’s a great plan from the book. Remember, it’s important to start, not the amount. Start with $1 if you must; just start! Get the habit going!

Prepare 6 jars (”Jars” can be literal, or bank accounts, or categories on a spreadsheet).

Place the following amounts in each of the jars every month after taxes.

Financial Freedom Account (10%)- used only for investments and buying or creating passive income streams. Money is never spent, only invested. Also, have a Financial Freedom Jar where you deposit money each day ($1, $10, loose change). Do something daily. Play Account (10%)- Use this money to nurture yourself. Use it for extra-special things in your life. The only guideline is that you must spend the money every month. Use it each month in a way that makes you feel rich! Education Account (10%) – Set aside money for your education (school, seminars,etc.) or your child’s education. Long-term Savings for Spending Account (10%) Giving (10%) Necessities Account (50%)

Start the plan and let the universe know that you are ready for more money.

By: Marc Smith