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How to Profit from Reading
Some time ago I read an interesting article by Michael Masterson about the various types of financial books and how to make the most from each of these books. The article, written in 2007, was called “How to Read and Profit From Wealth-Building Books”. This is a synopsis of that article.
Michael splits financial books into five types. These are the categories he gives them and how you can make the most of each.
Investment Books are usually written by share market (stock market) gurus who assume that you want to learn by investing in share markets. The way to get the best from these books is to read until you find a strategy that you think is best for you. Stick with this strategy as studies show that being consistent in your investing is a more important indicator of success than the strategy itself.
Academic Studies are typically written by researchers such as Thomas Stanley's The Millionaire Next Door: The Surprising Secrets of America's Wealthy. These books describe wealthy people, what they do, and how they became wealthy. Michael’s own book, Seven Years to Seven Figures: The Fast-Track Plan to Becoming a Millionaire (Agora Series), falls into this category. Read these books for motivation. They remind you that to become wealthy you must do what wealthy people do which is work hard and save.
Debt to Wealth books are often written by financial planners or advisers. These books encourage and guide those in financial trouble in the ways to control of their personal finances. Each author will have their particular way of providing this information but the books are designed to help create good habits.
Scrimp and Save books are often written by authors who show how ordinary folk take advantage of strategies such as the "miracle of compound interest" by investing wisely over a long period of time. This particular miracle is best started when you are young.
You Can Get Rich Too books are written by successful business people such as Donald Trump. Don’t be disappointed to find that these books tend to have the same stuff about getting rich. That is to say they advocate entrepreneurship and real estate. Use these books to learn particular property and business building tips.
Each book you read will give you something to take away. Being a prolific reader is one key to the success many people such as Warren Buffet and Donald Trump share. We can all read books to increase our wealth knowledge base.
As an Authorised Financial Adviser in Christchurch Lyn Bell has passed the requirements of the Financial Markets Authority and is legally qualified to provide financial services to her clients throughout New Zealand.
A disclosure statement is available free on request