By: Pamela Martinez, JBS Corp. & Rob Aquino, CFO
Many Americans have made the best of being quarantined by picking up new hobbies and learning new things. Now that you’ve baked your banana bread and mastered whipped coffee, it’s the time to pick up a book that will contribute to your personal and financial growth. We have selected our top five books that we believe you should read if you haven’t already!
Rich Dad Poor Dad by Robert Kiyosaki
The world of money is not taught in school. The only place we learn money is in the household, and unfortunately, most of us do not have parents whose parents educated them on the importance of personal finance. Businessman and author, Robert Kiyosaki, exemplifies the importance of financial literacy and financial freedom through lessons he’s learned from his “rich dad” (his best friend’s father) and his “poor dad” (his biological father). Rich Dad Poor Dad will break down many money myths that you may have learned growing up; specifically, you don’t need to earn a high income to be wealthy. Ch 1 opens with a powerful message, “The Rich Don’t Work for Money.” Kiyosaki discusses the importance of investements when trying to build wealth. By the time you put the book down, you’ll feel motivated to change the way you think, work harder towards your financial goals, focus on those goals, and, most importantly, never be afraid of loss. The largest risk you can take is to take no risk at all.
The Happiness Equation by Neil Pasricha
You might be thinking: “what does happiness have to do with my finances?”. Much to our surprise, happiness is paramount to succeed in all aspects of life, including financial independence. Neil Pasricha sheds light on how we can all make more money than a Harvard MBA, outside of our annual income. Pasricha starts off the book by illustrating the typical flow chart of happiness—Work hard Be Successful Be Happy—and moves into explaining why this chart, which depicts what many of us believe, can lead to unhappiness. Filled with fascinating stories, The Happiness Equation will guide you to unlocking the nine secrets of happiness and discover that wealth and money are not parallel. “It is honestly such a good book that I took a sick day at work and read it in one sitting” – Rob Aquino.
The Millionaire Next Door by Thomas J. Stanley & William D. Danko
Thomas Stanley and William Danko studied the profiles of millionaires and pinpointed the common characteristics shared by them. The book reveals that what many of us see on tv is not an accurate depiction of millionaires, and they may very well be John Doe, our next-door neighbor. Stanley and Danko focus on frugality and the true cost of consumption (monetary and time). This book will encourage you to live below your means and enable you to determine how you are spending your money, and if you are using your free time wisely. The following are some statistics to blow your mind (highlighting a few of my favorites):
- 89% of millionaires have a net worth between $1 – 5 Million dollars (not enough to buy a yacht).
- 62% graduated from public State Universities.
- 9% did not graduate from college (so statistically speaking… yes, college is important).
- Close to 50% had a grade point average equivalent to a “B” or less.
- 73% never had a penny of credit card debt.
- 18% are self-employed.
- 62% earned a household (couple) income of less than $100,000 a year.
- 80% exercise at least 3x per week.
- On average they spend $35 on a pair of jeans!
Net worth breakdown: 1/3 their primary residence & 2/3 their investments (real estate, stocks, 401(k)s, etc.)
Think and Grow Rich by Napoleon Hill
Arguably one of the greatest self-help books of all time, Think and Grow Rich by Napoleon Hill, is enriched with moneymaking secrets that teach you how to program your subconscious mind to achieve your financial goals or life goals. Hill highlights that although your conscious mind may be in full control, your subconscious mind is much more powerful and always working. The thoughts and emotions that we feed our subconscious minds manifest into reality; through his book, Hill will influence you to actively work towards feeding your subconscious mind with positive reinforcements to achieve your goals. Let this book serve as a compass to financial freedom.
The Four-Hour Work Week by Timothy Ferriss
The title of this book is more than enough to catch the average consumer’s attention, followed by the subtitle reading: “Escape the 9-5, live anywhere, and join the new rich”, I’m sure you’re sold. Timothy Ferriss encourages you to toss everything you think you know about retirement out the door and design your ideal lifestyle. The book is broken into four parts that take you step-by-step to eliminate 50% of your workload, define your goals, rearrange your focus, and much more.
A notable theme in this five-book selection is that they all discuss vital information that was left out of our formal education growing up. For the most part, it is still not readily available at our disposal. For many of us, it isn’t until we’ve dug ourselves too deep that we begin to discover this information. Reading is only half the job, take this list of books and use it to better yourself and those around you. It’s time to be proactive in achieving your goals and establishing financial freedom.
