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RSSAutomatic Wealth Book Review
For starters, Michael Masterson makes no bones about it, you have to work hard and focus on increasing your income. He offers hundreds of little nuggets to help get you earning a higher salary and ways to build off that income stream throughout the book.
Some of the book was just as vague and outlandish as some parts of Rich Dad, Poor Dad, but in other areas the author really resonated with me. He spends a lot of time focusing on improving productivity and other ways to excel at your existing job and then dabbles in how to expand that into investing, real estate, starting businesses, etc. I personally like the approach because it gives tangible ideas for how the average person can take some actions to gain wealth.
While this isn't the defining book, I think this is a worthy read for those who have read Rich Dad, Poor Dad and wonder "where do I go from here?". I didn't think the book did a great job explaining how to take your income and invest it in other incomes - I'm still on the hunt for better books on creating streams of income.
The book is organized into 6 steps:
1) Face the facts. Basically size up where you are at and that you will need to work hard and change things to meet your goals.
2) Spend less than you earn.
3) Develop wealthy habits.
4) Radically increase your income.
5) Get richer while you sleep. Invest in businesses, real estate, stocks, etc.
6) Retire early. You don't retire; you just gain the flexibility to do what you want.
Here are some nuggets from reading the book:
-8 habits of wealth builders.
-The average multimillionaire owns less home than you think.
-You can live rich for less than you think. Buy the most expensive mattress available. This was just an example of how there are some material things that you don't have to scrimp on - you can buy the same mattress that the richest person in world sleeps on for just a few thousand so why would you buy anything less than the best.
-Get to work earlier rather than sleeping late. I have always been a sleep in, stay late person whereas most at work get in early and leave early. The author suggests that staying late makes you appear disorganized and arriving early makes you appear industrious and organized. I never thought of it that way.
-The most financially valuable skill is sales.
-Become wealthy is easy as 1) boosting your income, and 2) use that income to invest in several businesses.
by 2million on
11/27/06
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Comments (5)
"Get to work earlier rather than sleeping late. I have always been a sleep in, stay late person whereas most at work get in early and leave early."
I question this one. Employers that offer flexible hours do it to make going to work easier on their employees. What good does it do you to leave work at 7, sit in traffic in an hour with everyone else, and finally get there at 8? You could leave for work at 10:00 and get there at 10:15 (or so) thus saving time, effort, gas, etc.
Posted by Anonymous | November 27, 2006 12:15 PM
I tend to agree, doesn't make alot of sense to spend all that extra time in traffic, etc. The corporate policy for my employer allows for a lot of flexibility.
The point I took when reading this is that my management may or may not think like I do. I need to look after my "appearance" as well as my results.
Posted by 2 million | November 27, 2006 12:28 PM
Simple and easy are different concepts. Benchpressing 400 lbs is simple, but not easy. Becoming wealthy is simple, but it is definately not easy. I wish it were both!
Posted by CPA1298 | November 27, 2006 7:16 PM
Good suggestion, I've read Rich Dad, Poor Dad and I've got ideas about what next but it's more of a book to get you to think about money than what next. I'll give it a read.
Posted by Matt | November 28, 2006 10:43 AM
To be fair I think this book should be called "How to Boost Your Productivity and Some Vague Ideas on How to Increase Your Wealth" or something like that.
Posted by 2 million | November 28, 2006 10:49 AM