3 Books That Changed My Money Mindset

Rich Dad Poor Dad ~ by Robert Kiyosaki

This was the first book I ever read about money. I remember then I felt finance was a matter of luck. If you were lucky, you can be wealthy. As I read this book, I realise money is as well a matter of learning. Thankful for Robert Kiyosaki who dedicated his life educating the next generation. In the book, he mentions the financial philosophies of his two "dads". His real father (poor dad) and the father of his best friend (rich dad). For one, his real father (poor dad) was working for companies and his salary held him tight. He was working for money. His best friend's father (rich dad) was working for value and money was working for him. This was transformational for me as I see some of the frameworks outlined below:

1. | The Rich Work for Value | instead of working for a paycheck month-by-month, the rich were focusing on building assets that generate passive income such as businesses, investments, assets.

2. | Financial Education | in as much as the sciences subjects are important for advancement in a good career, Robert's rich dad emphasised understanding how money works such as taxes and investing, assets and liabilies.

3. | Grow Yourself | this can come in terms of using your hobby to start a side hussle. It can also mean paying yourself to get better, get a better skill, get a better knowledge. Finally, developing your own financial future.

His rich dad changed the way of his conversation. It reminded me that my words do change the destiny of my life. There were so many fundamental truths that the tongue has the power of life and death, those loving it eat its fruit. Poor dad: "I can't afford that." vs Rich dad: "How can I afford that." Poor dad: "I'll never be rich." vs Rich dad: "There is a difference between being poor and being broke. Broke is temporarily poor. Poor is eternal."

Think and Grow Rich ~ by Napoleon Hill

The book started with Edwin C. Barnes who desired to work with Thomas A. Edison not for him, but work with him. Edwin burned to become a business associate of the inventor Edison. Carefully, Edwin descibed how he translated his desire into reality. When his desire first came to him, he had no position to act upon it. On the contrary faced two opposition, one Edwin did not know Edision. Two, Edwin had not enough money to pay his railroad fare to Orange, New Jersey. The difficulties were sufficient to discourage most men, however, not so for Edwin. Edwin was no ordinary desire. He was so determined to carry out his desire and carried on the journey on a freight train. Eventually, Edwin met Edison. And out of the business association grew the slogan "Made by Edison and installed by Barnes". The book describes 12 principles to act out like Edwin:

1. | Desire is the Starting Point | first starting with a desire. Clearly defining the desire and then committing to it wholeheartedly.

2. | Faith Turns into Reality | believing.

3. | Autosuggestion | repeating goals daily is part of preparing.

4. | Specialised Knowledge | general knowledge isn't enough. There needs to be useful knowledge.

5. | Imagination is the Mind's Workshop | beginning with an idea. Imagination is used to creating and planning solutions to bring a desire to life.

6. | Organised Planning | an actionable plan, achieveable and willingness to adjust when plans fail.

7. | Decision-Making must be Firm and Fast | make decisions quickly and change them slowly. Avoiding procrastination.

8. | Persistence Overcomes Resistance | not to quit.

9. | The Mastermind Principle | surrounding with like-minded people, driven individuals. A group who supports growth.

10. | Subconscious Mind | thoughts influences habits, habits shape destiny. Having good thoughts are powerful.

11. | The Brain | the brain sends and receives thoughts - more so when fueled by emotions.

12. | The Sixth Sense | intuition or gut feeling. I may also call it guide.

Napolean Hill outlines the principles to attracting and bringing in success. One of his best quotes "Happiness is found in doing, not merely processing" helps remind that the next step to desire is then action. It reminds me to set my mind on things above and not on things on the earth. For my life is hidden with Christ in God. Sometimes, it makes me wonder that chasing for success can be so tiring. But then again, how do I define success. Edwin desired to work with Edison, and his dream became a reality. It does show also that aside from finally achieving, Hill outlines being careful with my thoughts and positioning myself.

The Total Money Makeover ~ by Dave Ramsey

This book gives a different outline into Dave's lessons. Dave mentioned about how his journey went from bankrupt to bounteous. His concept is on getting out of debt, building wealth, and taking control of finances. Contrary to many finance education utilising on debt, Dave comes out of debt. One story the book mentioned was the story of Steve and Karen. They were regular couple buried in over $100,000 of debt - credit card, student loan, car payment. Their finances was a frequent point of stress and shame. They realised they had been living beyong their means. Karen picked up a side job. Steve worked overtime. They cut cables, ate at home, sold their expensive car, and spare dollar was put into the debt. Their baby steps snowball. Under two years, they became debt-free, had an emergency fund, and had investments started. The baby steps that Steve and Karen took, also Dave identified are outlined below:

1. | Save $1000 as a Starter Emergency Fund | this is about before tackling debt, a small buffer for life's events.

2. | Pay Off All Debt | starting from the smallest to the largest and paying them off in order. It gains momentum and before I know it snowballs and is gone.

3. | Save 3 - 6 months of Expenses | this creates security and a peace of mind.

4. | Invest 15% of Household Income | this is on building wealth for the long run.

5. | Save for Your Children's College Fund | this is using financial planning endowment or savings plan.

6. | Pay Off Your Home Early | this is about owning the home free and clear. With no mortgages means freedom.

7. | Build Wealth and Give Generously | this is the stage of enjoying the financial freedom, and living life with purpose.

I like this book because Dave gave very clear and step-by-step trail to progressively come out of debt. One baby achieveable move at a time. One of his quote "You must gain control over your money or the lack of it will forever control you" is aptly relatable especially with many things I can buy with cash. It is also extremely crucial when I go out with friends on the importance of budgeting. If there was no plan, I can't imagine how easy it is having my money simply flow. In conclusion, the book shows the power of intentional financial living coupled with discipline and hope.