I picked up this book in a whim. Since I’m broke, no harm trying to find out what I have missed in this book. Many years ago before I began my fiction reading spree, I have been reading loads of management books including personal finance books. So this book is elementary in comparison to other more sophisticated personal financial planning books I had read.
Rule 10: Money begets Money. Put some money aside for breeding purposes.
Rule 14: Money and happiness – understand their relationship. What money can do is to buy away a lot of unhappiness. It just can’t go any further than that.
Rule 41: Don’t be too busy earning a living to make some money.
If you do work for a living and don’t confidently expect that job to make you rich, then you must be doing it for love, mustn’t you? No, this isn’t a trick question. It is about prioritising our ambitions. If we go to work solely for money it makes sense to earn as much as we can, as we want. If you love what you do then if the money doesn’t come with it, you need to create a strategy for wealth creation that doesn’t rely on the ‘day’ income. ‘s great that you love what you do, but if you also want wealth you need to make sure you aren’t so busy doing it that you forget to work out how you’re going to get wealthy doing it, or what other actions or strategies you need to create a second income or alternative revenue generator.
My favourite of all:
Rule 78: Don’t ever believe you’re only worth what you are being paid.
Firstly, it’s a fact that if you work for an employer, those who change their jobs fairy frequently tend to get pay rises each time and therefore end up earning more than those who stay with the same company.
Secondly, no company is ever going to pay more for anything than they really have to. You need to proactive and ask for more, and show you are worth more. It requires you to take action, however. Don’t wait to be recognised.
Thirdly, if you think you are always worth more, it makes you restless, ambitious, keen to get on. If you accept what is offered and never question it, then it makes you complacent and you’ll get taken for granted.
I know fairly well what is being said, yet I have never practice it. Things will change, from now on. I am going to stick this up on the wall and remind myself that I’m worth more than what I am being paid.
The big question mark:
Rule 1: Anyone can make money – anyone can be wealthy, you just have to apply it yourself. (A bad case of hallucination probably to think money is everywhere).
Rule 38: Consolidate your debts – A friend wrote to all his creditors and offered them a 50% of the debt if they could write the rest off. (This will never happen in Asia!)
Rule 42: Save in big chunks – it’s good to be prudent and save regularly but in the long run a big chunk saved later in life will bring home the bacon just as easily. (well, wait too late, you might risk not having that big chunk to save at all! Again contrary to all financial planner’s strong advice to save young while you can.)
Rule 46: Understand that property, in the long run, will not outpace share. – any decent investment portfolio is going to include property as a matter of course. (This is debatable).
Rule 57: Create new income streams – this is especially important for anybody who loves their work, but it doesn’t pay well. What you need is another income stream. (American and Asian preach total self-actualisation, where it is possible to be able to find work that satisfies and also earn a lot of money. This is probably one of the conservative (typically, British!) advice to say that it is ok to stick to your day job even if the pay sucks, while you try to divert your attention to other money making vehicle; only if you still have the extra energy to do so, after slogging at your day job most of your waking hours and many young children to tend to!)
What I like most about the book: Some great gem of advice here and there. Things that you would like to stick it up in your workplace or your wall at home to remind you to refrain from splurging or ideas for investment.
What I like least about the book: Some advices are not practical, some contradicts, some just pure stupid. It make me feel as if the author is trying to put in repetitive advice and what comes into his head so that he can compile the rule list up to the magic number, i.e. 100. Not as good as his The Rule for Parenting.