Tree House Reading: Money, Finance, and Education
I’ve been on a reading frenzy for the past couple of months. It’s usually about finance and it’s usually quite eye-opening.
This week, I’ve got a couple of great books to recommend.
The 5 Lessons a Millionaire Taught Me
First off is a book called The 5 Lessons a Millionaire Taught Me (about life and wealth). This book was short but it packed a punch. The nuggets of wisdom are the 5 lessons mentioned in the title. They are as follows:
- Decide to be wealthy.
- Take responsibility for your money. (In other words, know how much you have, where your money comes from and where it goes, and what it is doing.)
- Keep a portion of everything you earn. (The power of compound interest is ridiculous. Start saving up a nest egg early.)
- Win in the margins. (Create extra income, or further add to your savings.)
- Give back.
I enjoyed this book not only because those ideas were so powerful, but also because of this one line that changed my life forever: Freedom and power are better than momentary pleasure.
Let me unpack that phrase a little for you. Basically, it means that fruitlessly spending money now is actually far less helpful than saving that same money and using it as a means to create freedom in your life. For example, if you buy a pair of $50 jeans, and your rent every month is $300, you can expect that the pair of jeans just cost you 1/6 of your rent payment.
What most people don’t realize is that instead of spending money on material items (usually unnecessary), they can put that money towards buying more time. Fifty bucks not spent means fifty bucks worth of your time that you don’t have to spend working if you don’t want to.
The Education of Millionaires
Another book that I read recently was The Education of Millionaires. In it, Ellsberg unleashes all of his criticisms toward formal education. He gives various examples of young people who made it big without finishing college. In fact, he claims that it’s the drive that these people had, not their ability to obtain a paper credential, that made them indispensable in whatever field they chose to be involved in.
Basically, it’s all about networking, sales/marketing, and learning your craft. Looking for opportunity, and being with an entrepreneurial mindset are the building blocks of being successful and adaptable in this modern day environment of uncertainty.
Hopefully these reviews have been helpful and you decide to pick up one of these books. Let me know if you find them to be as life-changing and interesting as I did!