Finance Book

While I’ve really enjoyed Robert Kiyosaki’s ideas—you probably know him from Rich Dad, Poor Dad, I have found that financial books written by women have a better understanding for the specific issues women deal with financially. It’s that resonance factor. Barbara Stanny, a trust fund baby who’s dad was the “H” in H&R Block, nearly lost her fortune allowing her husband to manage her money. When she suggested that she manage it, both her husband and her father laughed at the idea. With relatively little left in her trust fund, she educated herself in money management, then wrote, “

Prince Charming Isn’t Coming; How Women Get Smart About Money.” I just loved this book. The final chapter explains the importance of women gaining economic power and their potential for making powerful changes in the world. Barbara Stanny’s second book, “Secrets of 6 Figure Women” was even more packed with empowering insights and best of all, models of financial sustainability—women who had learned to overcome their fears and their programming and ask for all they deserved.

One of my favorite all time inspirational speakers, Jim Rohn says that everyone should become a millionaire; not for the money but for who you become in the process. Stanny echos that idea in Chapter 7: Strategy #4 Speak Up:

Asking for more is an act of self-love

Saying no is a show of self-respect

Refusing to settle is a statement of self-worth

Walking away is a sign of self-trust

She concludes the chapter with the idea that as you practice this, speaking up becomes something you have to do (vs. should do) because you know in your heart you are worth it. The chapter also explains why this is especially difficult for women.

No list of financial books worth reading would be complete without Suze Orman’s expertise. Though I’ve read criticisms for her soft approach, some stating that an article for men would never be written that way—I think that’s the whole point. If you want that style article, there’s plenty to choose from. Ormans philosophy is what sets her apart from the dry, left brain only mentality that just isn’t enough in and of itself. If a list of step by step how-to’s was enough, we’d all be living lifestyles of the rich and famous. God knows there’s enough straight talk out there. It’s refreshing to get it all in one package. Any one of her books is high on my list of recommended reading. Her latest one, “Woman and Money: Owning the Power to Control Your Destiny” may be the best place to start, though one of my all time favorites is The Courage to be Rich: Creating a Life of Material and Spiritual Abundance.” Just the idea that it takes courage to be rich is intriguing enough, don’t you think? It’s packed with practical advice and some ideas that will help you think about money from a more empowered perspective.

O.K., so that makes four books; consider it a bonus! Each of these books is a good read guaranteed to alter the way you perceive your financial possibilities. Each book presents interesting ideas to follow through on but it isn’t just the major shifts, like setting up a Roth account that alter your financial future, it’s the accumulation of little every day thoughts and actions that lead to long term results. Trying to change too much at once can set you up for failure. The best way to alter your financial reality is by gradually altering the mental maps that dictate the way you perceive the world. Little shifts, inspiring ideas, absorbed consistently, over time is the way our brains best acclimate to new information and the changes we would like to experience in life, like positive cash flow and increased net worth. With that in mind…

Bonus Book #5: A real treasure in the world of outside of the box money management: Don’t Stress – Manifest: 21 Truths to Set You Financially Free by Barbara Zagata. This empowering little book is so inspiring and so enjoyable, you’ll want to read it again and again. In a way, it’s the Law of Attraction in action! and it’s so much more. Best of all, if you’re feeling hopeless about your finances you don’t have to wait for Amazon to mail you your next dose of motivation because Don’t Stress Manifest is available as a super affordable get-it-now e-book.

By: Barbara Zagata

I don’t usually read non-fiction, especially a non-fiction book that has to do with finances and money management. But when I was browsing through the friendly neighborhood book-shop the other day, I happened to pick up this book because of its catchy title “Rich Dad, Poor Dad” and its tag phrase “What the Rich teach their kids about money – that the poor and middle class do not!” Maybe it had something to do with my sorely depleted bank balance and the fact that the book promised to teach something about money that my parent’s hadn’t.

“Rich Dad, Poor Dad” has been written by Robert T. Kiyosaki with Sharon L. Lechter. Mr. Kiyosaki is a fourth generation Japanese-American. After serving in the Marine Corps as a helicopter gunship pilot during the Vietnam War, he took a job with the Xerox Corporation as a salesman. This is when he started to invest in real estate and other commodities and eventually started a company that introduced nylon and Velcro wallets, designed for surfers, into the market. Mr. Kiyosaki now runs a business and investment education company, Cashflow Technologies, Inc.

Ralph H. Kiyosaki, Robert’s biological father, was the former Superintendent of Education for the state of Hawaii. He was a highly educated man with a Ph.D. from Stanford University. He is referred to as “Poor Dad” in the book. The man referred to as “Rich Dad” was a neighbor who had never finished eight grade yet owned warehouses, a construction company, a chain of stores and three restaurants. While “Poor Dad” urged Robert to study hard so that he could earn money, his “Rich Dad” taught him how to invest money so that he would not be bound within the constraints of a nine-to-five job.

The book contains all the various lessons about money that Robert’s mentor, “Rich Dad” taught him. “Rich Dad” was rich and taught Robert how to get rich and stay that way. The contrast between the attitudes of the rich and the middle-class towards money is further reinforced by the teachings of “Poor Dad,” who had typical middle-class notions about money, and made just enough to pay his taxes and own a house, in spite of being so highly educated and working for the Government.

Mr. Kiyosaki says his main motive behind writing this book is to teach financial literacy to those of us who have not been blessed enough to have a “Rich Dad” to show us how to invest our money properly. He argues that the present educational system renders us financially incompetent and allows rich corporations and the Government to exploit us for money because of this lack of financial literacy. He offers many valuable insights into money management that he obtained from his “Rich Dad” and from his personal experience.

The most significant concept in the book that I found to be an eye-opener was his differentiation between a “business” and a “profession.” According to Mr. Kiyosaki, besides ones day-to-day job (or “profession” as he calls it), every person must also have a “business” where he can invest his money, and which will in turn generate money for him even when he is not working. He also goes on to explain the history of taxes and how the rich manage to legally evade paying a fortune in taxes through the formation of corporations. His definition of “assets” and “liabilities” was a revelation to me, and a sad one at that, because I realized that most of the things that I considered my assets were actually liabilities in the long run. He also gives detailed examples on how to manage ones cash flow so that returns from the assets can be invested into procuring more assets.

The book is very well written and, surprisingly for a book on the subject of finance, not at all dry or long-winded. Mr. Kiyosaki uses a lot of anecdotes to illustrate his ideas and the constant comparison between the wealth management strategies of “Rich Dad” and “Poor Dad” serves to reinforce the need to change middle-class mindsets about money.

I have read some criticism about this book, saying that the financial advice offered in this book is too general and not very accurate. Not being a financial genius myself, I wouldn’t be able to counter these claims. But, as a layman in the field of finance, I found this book very encouraging and motivational. It really made sit back and take a close look at where all the money that I am working so hard for was going. Even if I don’t actually use all the strategies outlined in the book and become a millionaire, it was still a very interesting read that has changed my outlook on money forever.

By: Vijay Ghosh

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