Wealth Guide

Wealth Guide The Power Moves
1
++Copyright++
© 2018 The Power Moves. All rights reserved.
No part of this publication may be reproduced or transmitted in any form or by any means,
mechanical or electronic, including photocopying and recording, or by any information storage
and retrieval systems, without permission in writing from the author or publisher (except by a
reviewer, who may quote brief passages and/or show brief video clips in a review).
Disclaimer: The advice and strategies contained herein may not be suitable for every situation.
This work is sold with the understanding that the author is not engaged in rendering legal,
accounting, or other professional services. The author shall not be liable for damages arising
here from. The fact that an organization or website is referred to in this work as a citation or a
potential source of further information does not mean that the author endorses the
information that the organization or website may provide or recommendations it may make.
Further, readers should be aware that internet websites listed in this work may have changed
or disappeared between when this work was written and when it is read.
2
C ONTENTS
++Copyright++ ............................................................................................................................................ 2
Introduction & Literature Overview .......................................................................................... 4
Types of Rich ..................................................................................................................................... 6
Basic Knowledge................................................................................................................................. 7
1. Compound Interest ................................................................................................................... 7
2. Stock Market Is Safe… Is It? ............................................................................................... 8
Asset VS Liability ............................................................................................................................ 8
2. Basic Tenets of Wealth............................................................................................................. 11
3. Traits of Millionaires .................................................................................................................. 13
4. Traits of Poor People ................................................................................................................. 17
5. Saving................................................................................................................................................. 21
6. Earning............................................................................................................................................... 23
7. Employee or Founder?............................................................................................................... 25
8. Getting Off Debt ............................................................................................................................ 28
9. Investing & Market Knowledge ............................................................................................ 30
10. Children Education ................................................................................................................... 36
11. An Alternative View of Wealth ........................................................................................... 37
RESOURCES ......................................................................................................................................... 40
3
I NTRODUCTION
In all my ebooks I give an introduction and “state of the literature” overview.
It tells you how good the literature is, what are my credentials to comment on it and what are
my personal biases.
MY BACKGROUND
I started investing in the stock market in my early 20s and in that period I have read a lot about
financial markets, technical analysis and the psychology of investing.
I gained a relatively good understanding of financial markets, but was still lacking a
comprehensive overview of economics and finance though.
So when the time came to write my master thesis I used it as the perfect opportunity to marry
my drive to understand economics with my studies –and other passion- of human brain,
psychology and sociology.
My master thesis was a look, from a psychological standpoint, to the 2006 financial crisis and
its causes.
That gave me the opportunity to read a few more books on “basics” and, overall, it gave me a
much, much better understanding of finance and economics.
When it comes to making money online I used to do dropshipping during my studies, which
means scouring products in the Chinese market and then reselling them in the west on Ebay.
It worked relatively well but I never tried to scale it: I was able to pay my rent and a little bit
more and was more than happy with those results.
My last job, where I stayed for a couple of years, was in fintech startup.
We were lending to companies against its receivables, a practice going by the name of
“factoring”
I was in sales of course, but since it was a small venture, I was very close to the finance guys
and I learned a bit more about fundamental analysis and key business metrics –and I also
learned how easy it is to engage in insider trading when you have access to early news and
updated companies’ financials-.
Since I was rather senior I also had a (very modicum) amount of shares, which also helped me
understand the issues and intricacies of ownership, evaluation and raising money.
4
And now we get to today and my experiencing of launching online businesses from scratch.
Today I run a growingly popular website and its revenues have long outstripped the expenses
–which are rather low anyway-.
My financial goal in 2019 is to make it a source of income which is comparable to my last job.
It’s a bigg-ish goal, but I think it’s achievable.
With ThePowerMoves I learned SEO, deepened my tech knowledge and, albeit I still suck a lot
there, a bit of online marketing –my focus has been more on quality rather than marketing and
I will keep it that way-.
Last Note: by bootstrapping I also learned a lot on money savings and how easy it is to live
with very little expenditures.
STATE OF THE LITERATURE
With that preface in mind, I personally found most personal finance literature to be geared
towards beginners.
If you’re not overspending, if you’re aware of compound interest and if you know the very
basics of safe market investment, you will gain little from the most popular titles (and
websites) in the personal finance space.
Now you might be wondering: why the hell are you selling an e-book on wealth if you don’t
think the underlying books are good?
To begin with, as I mentioned, my focus is on quality, not marketing. And to deliver I need to be
honest to deliver the best product I can deliver.
Second, I will still likely deliver more value to you than you would have gotten by buying any
single personal finance full book.
Third, I will deliver that value while saving you both time and money.
I believe you can indeed consider this e-book the only book you’ll need when it comes to basic
personal finance.
Fourth, you will get an honest look on “make money online courses” from someone who’s
actually walking that path and who is not selling you a “get rich” product but simply a
providing you a critical analysis of the existing literature.
Now, if on the other hand you are not aware of basics finance yet, then the personal finance
literature does have the potential of being life changing.
5
THE TWO TYPES OF GET RICH APPROACHES
The literature is split among two different types of rich they encourage you to be:
1. The frugal employee who saves and invests
I will call this the frugal way. To get rich with the frugal way, you need time. But many do
become millionaires even with average income. Studies show many millionaires have salaries
of 80k or less.
2. The entrepreneur who risks and builds businesses
I will call this the hustler way.
And there is a third type of literature:
3. Analysis and researches of the traits of rich people
This third approach is more data-centric and shows you how people who got rich think and
behave.
In a way, we could probably also put biographies of rich people in this category.
As usual, I will present you will all three.

But keep in mind that 1 and 2 are very different from each other. None is “better” than the
other but require different personalities and lifestyles.
A Note on Tony Robbins Quotations

I will sometimes quote Tony Robbins here.
He’s a motivational speaker and at the beginning of his career I wasn’t impressed by his
financial wisdom.
But things changed when he wrote Unshakable and Money Master the Game.
He did his research and interviewed some of the very best in the financial industry for those.
So every time you see his name, consider him a conduit of knowledge from much more
experienced guys and a rather creditable source here.
A Note On Cand Do It Attitude

Virtually all authors agree that anyone can overcome debt and become rich.
And most authors agree it’s mostly a mental shift which precedes, and which is more
important, than the actual practical steps.
6
B ASIC K NOWLEDGE
This first chapter deals with some of the very basics tenets that form the backbone of much of the
personal financial literature.
1. Compound Interest
Virtually all proponents of the frugal road to riches recommend you invest your savings and
use the compound interest to make a relatively small sum of money balloon over time.
You may be heard some crazy examples of compound interest rate.

If not, here’s an example of the typical compound interest pitch:
If you invest 5.000 per year every year for 40 years at an 8% interest rate, you end up with 1.6
million.
And that’s something everyone can do, say the proponents of the compound interest. Indeed,
you could do that.
Criticism of Compound Interest

Compound interest is a mathematic property, so per se it cannot be criticized because it’s
simply true.
But some critics voice disagreement on the idea that compound interest will undoubtly make
you rich and/or that it’s the best way to get rich.
The critics say that the apologists of compounding your way to riches don’t tell you that:
• You’ll be old before you enjoy your money

• Most examples don’t account for inflation and taxes
• You must limit your present consumption for the uncertain future
• The stock market could crash just before you need to withdraw your money
But the biggest criticism, in my opinion, comes from Nassim Taleb, author of Fooled by
Randomness.
It can be boiled down to this sentence:
• The past doesn’t equal the future
Taleb says that because the stock market achieved an average of 7% annual return over time,
this is no guarantee it will keep doing so.
Indeed: it’s hard to counter that.
7
To sum it up:
Compound interest is an incredible force you can put on your side. Just be aware of the limits
and that, in life, there’s no guarantee of anything.
2. Stock Market Is Safe (Is It?)

Almost all personal finance literature seems to sell on the idea that, on a long enough timeline,
the stock market is safe.
Tony Robbins for example says:
“it always rebounds. Nobody knows when, but long term it always rises”.
Looking at the past all these authors are indeed right. But again, looking at the past does not
guarantee the future.
What can one do then to at least lessen the risks?
Hedging Stock Market Risks

You can take some risk off the table by adding to your portfolio several different income-
generating assets, like for example real estate, bonds and treasuries (US government bonds).
You can also buy financial assets that not necessarily move in tandem with the stock market,
like for example commodities and gold.
Gold usually rises with fear and uncertainty because it’s a safe heaven asset that people buy
when they’re afraid think will take a turn for the worst. That makes it a good hedge against
possible troubles. Theoretically.
You can also gain contrarian market exposure with short positions or with derivatives that
increase their values when the overall market goes down (ie.: CDS, insurances).
To Sum It Up: if you prefer the frugal way to riches, there are ways to shield your portfolio
against weak or even collapsing stock markets.
It requires more knowledge than any personal finance book shares though, which means you’ll
need to dig deeper or speak to a financial consultant.
Asset VS Liability
Kiyosaki has what was for me one of the simplest, yet most eye-opening wisdom of them all:
his contrarian interpretation of assets and liabilities.
8
In standard financial accountancy if you have a car and a house, they are your assets.
But Kiyosaki instead says that an asset is:
An asset is simply what puts money in your pocket.
And a liability is:
A liability is anything that takes money from your pocket.
In financial accounting terms if you buy a house and live in it while paying mortgage and taxes,
you have an asset.
But for Kyosaki you have a liability because that house takes money away from you.
A corollary is that if you buy a house, live in it and rent out a room so that the rent covers part
of the mortgage and expenses, then you have a smaller liability than if you were renting (and
you build equity in the meanwhile because your money pays your house and not someone else
for rent).
But if you buy a house and the rent covers the mortgage, taxes and reparations so that the
rental income is higher than the expenses, now you have an asset.
Rich people buy assets

Poor people buy liabilities thinking they’re buying assets, says Kiyosaki. They buy cars and
open mortgages that will force them to keep working to pay the banks.
They don’t realize it, but the payments on their liabilities is what keeps them poor.
Kiyosaki also recommends that you never buy a house because of the potential for
appreciation in the future. Only buy a house if it makes sense today.
Is the cash flow positive (an asset)? Then it’s a good investment.
Is the cash flow negative and you believe it will appreciate soon? It’s a liability: don’t buy it.
Asset liability review

Armed with the asset VS liabilities new knowledge, take a renewed look at what you own:
• Do you really need a car?
Living in a city with great public transportation, I don’t own one. There are abundant options
with car sharing here, which means I always have a car available a few hundred meters away
any time I need one.
9
It might not be the case for you, but it’s worth you consider alternatives such as car pooling,
cycling or a cheaper scooter.
• Do you need gym memberships if you don’t go?
Many gyms make their real money with people who sign up and don’t go. Cancel yours if you’re
not going.
• Do you need a mortgage to buy a house?
When I was living in Prague I was thinking of buying a house there. I didn’t have an unlimited
contract though and I wasn’t 100% sure I was going to stay.
But hey, me and my family were saying “a house is always a house, the value stays there and
you can rent it no matter where you go”. Big BS.
Of all my friends who bought a house and then moved, they all regretted it. It’s an immense
cost of time and money to manage your own house when you’re not living in loco. And the
hassles are 5x worst.
Only buy if you love your city, if you know you will stay long term and if it makes sense
financially. Otherwise, split rent with your GF/BF.
• Do you need a pet?
If you appreciate the emotional connection, go for it. But as a guide on personal finance I must
add that most people underestimate the actual costs of owning a pet.
• Do you need Netflix, Tinder Pro, phone contract?
In an era where you can watch streaming for free, do you really need Netflix? Phone contract?
You might save going from phone contract to pre-paid.
You can’t live without wi-fi these days, but have you thought about sharing it with your
neighbor(s)?.
• …..
Buy assets
• Low priced flats for renting
• Dividend paying stocks
• Bonds
• Storage units and sell space
• Houses with car parking: negotiate saying you don’t own a car and then rent it out
• Animals you can breed and sell puppies from
10
2. B ASIC OF W EALTH
This second chapter deals with some of the very basics tenets that repeat over and over in the
personal finance literature.
They are not earth-shattering concept, they are relatively easy to follow but most people still
don’t follow them.
Don’t be most people, because most people don’t live in financial abundance.
1. Spend Less Than You Earn

All authors recommend that you spend less than what you earn.
How much you should save varies from author to author, but they go from at least 10% of your
income to more than 30%.
If you can’t do 10% you should readjust your life and expenses to reach it.
2. Invest Your Money

All authors recommend that you invest the best part of the money you save. Most authors
recommend you invest in the stock market (more on it later).
3. Cut Your Expenses

Some books are more geared towards making more money, but most are focused on saving.
They mostly recommend that you take a strong hard look at all your expenses and then review
everything you can cut or eliminate.
Daily Perks
Some authors recommend you take a look at your daily expenses. All those items that seem
small when you look at them, but which add up. For example, the Starbucks morning latte and
maybe a pricey snack to boot.
Do you really need it? Because it adds to a lot of money over the course of the year. That
money on compound interest could be worth a lot more years down the road.
4. Buy, Don’t Rent

Some authors exhibit a strong bias against renting.
And they have a point.
If you have the ability to buy or take a mortgage and you know you will be living in the same
11
place for a while, then it might make a lot of sense to buy.

Renting might be the equivalent of flashing money down the drain.
Buy a house instead and think of ways to transform it into an income generating machine by
renting one room out, and/or renting it out any time you’re not there (if you travel often, it adds
up).
12
3. T RAITS OF M ILLIONAIRES
If you want to be rich, it’s helpful to take a look at how millionaires behave and what traits they
possess.
Grant Cardone says that being rich is 2/3 mental.

Harv Eker in Secrets of the Millionaire Mind also says that being rich, as much as being poor, is
a mindset. To change your life, including financially, change the way you think. Eker also says
that a mindset is often passed on from parents to children.
Which means that if you come from a poor or middle class family, you likely inherited their
limiting beliefs about life and money.
I can attest to that. I grew up in a family where a government job was the ultimate dream. A
family that kept amassing liabilities.
And it took me years to first understand and then overcome those limiting mindsets.
This chapter will deal with the mindsets, traits and characteristics of the millionaires (both
frugal millionaires and entrepreneur millionaires).
1. Poor at School
Don’t worry if you sucked at school. So did many millionaires.
Thomas J. Stanley, author of The Millionaire Mind says that 90% of millionaires do have a
degree but most do not attribute their wealth to university or grades.
You might think that self-evaluation doesn’t say much, and I would agree with that.
But it’s definitely more telling though that many millionaires were rather average in school and
were not deemed “smart enough” for top schools and professions, which is more factually-
based.
Meaning: you don’t need book smarts to get rich.
2. Vocation, Vocation, Vocation

Millionaires overwhelmingly said they love what they do.
Don’t get sidetracked though: there’s a lot of talk today about “changing the world” and
“dreaming big”.
But that’s not the reality of life for most millionaires.
Many of them don’t run companies to change the world: they have a chain of car washing,
cafes or gas stations.
Love comes from expanding, spotting opportunities, and deepening their skills. And, of course,
growing their money stack. Many millionaire love making money.
13
3. Choice of Spouse
Getting divorced is a huge cost.
And that’s without even taking into account the emotional costs and the time wasted between
litigation, paperwork and lawyers.
Most millionaires indeed said their spouses were instrumental to their success.
Picking a spouse whom you can trust and learning to build solid relationships is possibly the
single best investment you can do (check my relationship guide if you’re interested, wholly
based on what works, scientifically).
4. Money is Freedom
Not all millionaires, but many millionaires have a mindset of money and/or entrepreneurship
equaling freedom (this is mostly true for self-employed millionaires of course).
5. Leverage Financial Assets

Rich people use financial assets not to get rich, but to generate cash. It’s because they have a
bigger wallop of money that helps them generate more cash through interests and dividends.
This is what Kiyosaki calls “making money work for them” instead of working for money.
My Note: this is useful to understand theoretically, but it’s not a practical bit of information. To
reach that point, you first must make your money.
Don’t Invest in The Stock Market

However, while most personal finance books talk about investing in the stock market. many
millionaires don’t invest much.
Or at least, they don’t rely on the stock market to get rich.
Millionaires focus on building a business instead.
6. Millionaires & Risk

Millionaires entrepreneurs have the mindset that being an employee is the riskiest position of
all.
You can get fired at any time and you have a ceiling on how much you can earn.
Millionaires said that to accumulate wealth you need to take risks.
Some key mindsets:
• Overcoming fear
• Believing in yourself
• Keep working at it and confidence will come
14
7. Be, Don’t Show

Stanley & Danko say many people could be wealthy but are not because of their mindset
around spending.
They believe that not displaying wealth is like not having any. For these people, you are
successful when you can show and consume, so they maximize their income around
consumption.
Millionaires don’t have such mentality. Millionaires are not interested in showing off. The
authors say media and newspaper tell us the wrong story: millionaires don’t buy the highest
priced items.
For every luxury “most expensive” item a millionaire buys, there are 8 non-millionaires who buy
it.
Instead the millionaires budget and control their expenses.
8. Internal Locus of Control

Rich people believe they’re in control of their lives and that they can fix things. They don’t
complain about the government, society or what’s wrong in the world. They think what they
can do to change their conditions.
9. Rich People Think Big

They have an abundance mentality, they think there’s more and more out there, and the only
question is how to get it.
And poor people think small. They clip the coupons, try to hold on to the tip, spend hours to
save a few cents.
10. Spend Time with Rich People

Rich people spend time with other people who also have a millionaire mindset.
11. Admire Success

Rich people admire other successful people. They want to connect and learn from them.
Poor people resent successful people and try to take them down instead of learning from
them.
12. Opportunities Focus

Rich people focus on opportunities while poor people focus on obstacles.
15
13. Paying Little Taxes

I would like to add here a more critical view of society and different socio-economical classes
coming from Kiyosaki in his famous book Rich Dad Poor Dad.
He says that the poor pay little or no taxes because they have little, and they often take from
the government in the form of subsidies and grants.
The middle class pays all the taxes. They are taxed first and forced to pay the government very
first thing. They then get to keep what’s left and maybe get rebates at the end of the year if
they’re careful enough.
Corporates and rich people instead shield behind corporates, they know the system and
leverage it to find loopholes that allow them to pay as little as possible.
Corporates also pay deferred taxes. They pay themselves first and pay taxes late on what’s
left.
They also have more opportunities to engage in grey area shenanigans. Such as they might go
to a meeting in some fancy location and bill it as a work expense while they might also enjoy
some holidays while in there.
16
4. T RAITS OF D ESTITUTION
What characterize poor people instead?
The following are the traits that in the literature are most often associated with poor outcomes
-literally-.
1. Financial Idiocy
Most poor people don’t know anything about finance and economics, and they commit most or
all of the following mistakes:
• They see an item they can pay with installment and think they’re snatching a deal while
the truth is they end up overpaying for it.
• They see easy financing with long repayment dates and think they’re getting free
money. They’re instead enslaving themselves with the repayments.
• They buy the big TV because they have access to predatory payday loans -and don’t
realize they’re paying 400% annualized interests.
• They talk about betting and the money they can win with it, without realizing that
betting is nothing but a tax on financial idiocy.
2. Spending Exceeds Income

They spend more than they earn.
Poor people are not necessarily poor financially, but they are poor in their mindsets. And that
can eventually lead to actual financial poverty -and it often does-.
Many celebrities have poor people mindsets and you see them squandering millions and
millions with an unsustainable mix of income and debt.
3. Fall For Instant Gratification

The poor go after instant gratification. They have difficulty grasping the concept of delayed
gratification, of working hard today for a better tomorrow. Or not consuming today for a better
tomorrow.
But as they buy what they can ill afford, they are selling their future time.
Sometimes this is not just financial, but health-related as well.
4. Lottery Tickets Mentality

Poor people tend to pursue money through events rather than hard work or building systems.
They go after lotteries, gambling… A big criminal hit maybe.
17
All these activities are far more likely to get them in trouble than make them rich. And of
course, even if they hit the big time, they still have a poor mindset, which leads many of them
back where they started: destitute.
5. Money Plucked on Trees

Poor people fail to see the connection between skills, hard work and money. They see rich
people and think they’re lucky.
And they get jealousy and angry instead of asking themselves what they can do to have the
same and what they can learn from them.
6. Mindset of Impossibility
Because they fail to see a path to money that they can also follow, they don’t see themselves
as ever able of becoming wealthy.
7. Waste Time to Save Little

Some poor people save a lot, but they might save the wrong way. Taking a layover flight to
save 20 dollars while wasting 8 hours is not the way rich people act.
Clipping 20cents coupons while you could be increasing your knowledge to become a more
effective, high income employee is also silly.
8. Debt Mentality
Dave Ramsey says that debt has become such a part of our culture that is simply seems
normal to be in debt.
The author is especially caustic towards credit card debt, which gives us the illusion of wealth
but only creates future problems.
9. Middle Class & Average Thinking

The middle class is not poor, but it’s mentally poor for MJ DeMarco, author of The Millionaire
Fastlane.
DeMarco is one of the biggest critics of the compound interest theory, which is what he calls
“slowlane”.
He says the compound strategy wastes decades. Especially if you’re in a job you don’t like,
why wallowing in decades of pain?
While you toil away, you trade a salary for time, you trade 5 days for 2 free days and your
employer is making money off you of you.
That’s why people celebrate TGIF he says, because they’re enslaved for the whole previous five
days.
18
The other issue with the middle class is that you don’t control your destiny. What if the stock
market tanks when you’re about to withdraw your money? Or if you want to double your
income today, think your boss will accept it? If you get a heart attack at 55?
Problems with the slowlane middle class:
• Trade weeks for weekends

• No leverage (work twice harder is not twice the money)
• Trade time for money (you can never buy back time)
• Upper limit (can’t work more than 24h/day)
• Trade your best years for future, uncertain money
• Compound interest takes time and only works in the final years
• Limited learning (compared to huge learning with your business)
The Middle Class Curse

Measuring the very top earners a study found out an extremely interesting phenomenon that
has sometimes been referred to as “the middle class course”.
At the very top 32% of the people had started with a distinct advantage, 52% with a distinct
disadvantage and only 16% were from “normal” backgrounds.
If you are in the middle class, as it was the case for me, understand this: you are actually at a
disadvantage.
That makes it all the more urgent for you that change your mindset or find your own source of
motivation.
I don’t really like Grant Cardone much, but we don’t need to like to people to learn from them
and he hit the nail on the head when he wrote “be obsessed or be average”.
The guys at the bottom who made it to the top were obsessed about getting there -Cardone
himself was a drug addict-.
You need to find your own fuel and obsession.
The Paradox of Practice

MJ DeMarco makes fun of personal finance gurus. He says they sell you the slow lane –grow
rich with average salaries that you invest- while they get rich selling you those products –ie.:
pulling the wool on your eyes-.
My Note:
DeMarco’s book The Millionaire Fastlane is a book I absolutely loved. It put into writing what I
was already somehow thinking and feeling.
However, that’s also very scathing of the middle class and It's not always true.
19
Being an employee can suit some characters who can lead awesome and happy lives as
employees.
And the life of the entrepreneurs can easily be much busier -and unhappy- than the employee,
which partially invalidates the 5 days for 2 days argument.
Employees can also make good money and these days can have more freedom than ever
before.
And of course, DeMarco is also an American writer. Being an employee in many other
countries gives you a good amount of freedom.
Here in Europe for example a friend of mine is just about to go for a 6 months paternity leave
while still getting a nice salary. Another friend of mine working as an analyst at the ECB
worked, he said, an average of one to two hours a day with a big salary and plenty of holidays.
In Sum: understand where DeMarco is coming from and that it does make sense. But listen to
yourself first and foremost.
20
5. S AVING
Here are a few tips I found valid in the literature:
• When you see good offers of unperishable items: buy lots of them
• Whenever you can: buy things in bulk
If you need to replace for example windows in your house, ask all your neighbors if they want
to combine an order. If you live in a condo and windows are old in your house, chances are
they’re old also for your neighbors.
• Take advantage of grants

• Use scholarships
• Make your mortgage as short as possible (lower interest rates)
• Ask for discounts
• Never buy the first time you see something (chances are you’ll realize you don’t
need it)
• Never pay today when you can wait
• Save for college with government plans which are often tax free
Negotiation
Learning to negotiate is an invaluable skill that will allow you to save hugely over the course of
a lifetime.
Millionaires often have a much-heightened predisposition towards negotiating than most
people.
For example, they present a few common tendencies when buying a house. They:
1. Don’t pay the initial ask price

2. Take time scouting for good options (foreclosures, divorce sales etc.)
Pay Yourself First

The Automatic Millionaire dedicates a large portion of the book on the idea of paying yourself
first. That means that as you receive your compensation you put away a chunk of it first thing.
Even before paying expenses, a chunk of your salary goes into your investment fund before
you even look at your expenses.
The author recommends 1/8 of your daily income should go to yourself first. If you can’t
manage that, raise your income or lower your expenses until you can.
As simple as it this concept can be, it works and it’s something that few people do.
21
Make It Automatic
I very much liked the idea of making the saving system automatic.
It saves you time, you don’t feel like you are taking anything away from your current living
standards and you don’t go about your life happy and jolly as if nothing was happening.
22
6. E ARNING
Authors like Kiyosaki, DeMarco and Trump tell you to find a way to get rich quickly. But most
of the rest focus more on saving and investing with the power of compound interest.
So there is not much wisdom on increasing your earnings in the personal finance literature as
compared to saving.
But for what’s worth it, here are a few good tips:
Work to Learn (Not for Money)

Many authors recommend that until you reached a point of real expertise you focus on
learning rather than on making money.
Chances are that it will pay off handsomely over the course of your life.
Shun General Knowledge

Napoleon Hill of Think and Grow Rich says that general knowledge is if little use in
accumulating riches. People with lots of general knowledge are academics and professors at
best. You need instead specialized knowledge.
Get Specialized Knowledge

In practical terms this means you want to be very good in a specific field.
For example, a friend of mine is an engineer specializing in plastics polymers. There are not
that many industries where he can find work, but he finds high paying jobs at will and is free to
enter and leave the job market whenever he wants because there are so few people with his
level of expertise.
Example of good specialized knowledge in today’s society:
• Software programmer
• IT architect
• Engineering
• Vocational training (plumber, electrician etc.)
• Surgeon, eye doctor, pediatrician etc.
Example of generic specializations:
• Software engineer with zero programming skills

• Handyman with no specialization (fixing simple stuff, assembling furniture etc.)
• General practitioner
Charity giving
You might be surprised of seeing this one in on a chapter on earning.
23
But Gretchen Rubin says that after doing complex number crunching to control for different
variables research shows that charitable giving isn’t just correlated with higher income; it
actually causes higher income.
Some explanations for this surprising effect include:
• Brain stimulation caused by charitable activity

• Donating to charity make people more likable and likely to be elevated to leadership
position
• Giving makes people feel good, which in turn leads to more positive action
Skills to Acquire
Some authors provide a list with good skills to acquire, and the most popular are:
• Management
• Business systems
• Sales
• Marketing
• Frugality
Stanley, asked the millionaires to rank 30 different success factors.

The top three were:
1. Honesty
2. Discipline
3. Social Skills
24
7. E MPLOYEE VS F OUNDER
So far we have spoken of two different ways of getting rich.
The frugal one, more focused on saving and budgeting (majority of authors); and the
entrepreneurial way, more focused on hustling (Kiyosaki, Trump, DeMarco).
Now comes the big question: which one should you go for?
What Numbers Say

The personal wealth literature presents in my opinion a big lack of analysis when it comes
between the choice of salaried work, self-employment or founder.
They either say working for someone sucks, or they give for granted you’re an employee. Sadly
though, none I have read takes the time to examine what’s best from a statistical perspective.
I have done my own research then.
Analyzing employees and self employed over a 10 years span showed that entrepreneurs
earned 35% less over a 10-year period that if the had a salaried job.
However, as much as there are huge differences among employees, so there are among self
employed.
A major one is that between incorporated self-employed and non incorporated.
That self-employed people who incorporated earned much more –36% more per hour than
their salaried counterparts even when matched on age, gender and education-.
And they even worked longer hours, resulting in an even larger annual salary difference.
Entrepreneurs tend to earn more than employees… Over the lifetime. They tend to earn less
starting out as they have little or no salaries.
Another advantage is that they tend to learn quicker.
Which Should You Pick?

This simply my opinion because as I’ve already stated no author gives recommendation based
on number and nobody even goes into some good philosophical debate.
Because without numbers, in the end, that’s what we’re discussing: philosophy (of life).
I don’t think you should pick entrepreneurship, salaried work or self-employment simply based
on the earning potential, but on your personality.
Even if you wanted to go with numbers, the variance among each path is so huge that it makes
little sense. What you do matters much, much more than what overall, average numbers say.
25
I would say that on average risk appetite and high drive go for entrepreneurship. Freedom
lovers either try to build a business quick (not ideal), business independent of themselves or
go for self-employment.
People who like structures and safety go for salaried employment.
The Myth of The Entrepreneur

I’d like to make a quick note that these days are a bit of an entrepreneurial gilded age. It’s hip
to do your thing, it’s uncool to be an employee.
Cal Newport in So Good They Can’t Ignore You though makes the great point that “following
your passion” is often bad advice. We don’t know what our passions are early in life, he says.
And passion grows with master most of the time.
He says the advise of following your passion, which often means quitting your job and doing
your thing, is often a very bad advise.
He argues instead to first build have the skills and knowledge to pursue your dream. And to
make sure your dream is monetizable.
His book has many stories of broken dreams of people who started randomly following their
passion with little skills and little of value to sell.
Always Self Employed

That being said, even if you decide to be employed, the mindset that you have is key for your
success. I particularly liked an idea from Brian Tracy.
Top performers, he says, never see themselves as employee.
They either see themselves as self-employed selling their services to the best bidder, or they
see themselves as owners. If the latter, they see themselves as responsible to get the job done
across the whole value chain.
They accept 100% responsibility and see whatever happens in the company as affecting
themselves. He says that all opportunities will open once you start taking full responsibility for
your organization.
Sex Transmutation
Whichever path you choose, I’d like you to consider something Napoleon Hill pointed out.
He says that sex is the most powerful creative energy. He says that there is no great leader
without the driving force of sex: sex energy is indeed the creative energy of all genii.
But sex energy must be transmuted from desire of actual sex into a different form of desire
and action. Then, and only then, it can be the driving force of a genius.
Napoleon Hill says that the majority of men only succeed after the age of 40 or 50 because
they tend to waste the sexual energy in the over indulgence of the sex, rather than harnessing
it and putting it to different and higher uses.
Romance + Sex = Genius
26
Adding romance to sex puts us closer to Infinite Intelligence. When sex is coupled with
romance, then a genius is born.
My Note: this was eye opening for me and it served my very well.
Stay Away from Work as Badge of Honor

I want to leave this one as last because it can be a big trap these days and I have seen more
than one person around me falling for it.
The entrepreneur myth, coupled with the new “entrepreneur/influencer” has ushered the
mythology of the hard work.
The biggest exponent of this ideology is Gary Vaynerchuk. The problem with Gary’s phylosphy
is that many guys start seeing work as a badge of honor. Work becomes a metric and a KPI.
But work is not getting your results by itself and “struggling” is not a merit per se.
They only are means to an end, and you need different measures to make sure you are
progressing and that you don’t keep insisting on a path that only wastes your time and
resources.
As a matter of fact, Cal Newport in Deep Work says that we do our best work only when we are
100% focused and distraction-free.
But, he says, even the pros cannot handle more than 4h of Deep Work per day, and maximum
in chunks of 60 to 90 minutes.
Anything else outside of Deep Work is low quality and low efficiency. Basically, time waste.
Now you might not want to fully believe in Newport, but you definitely must avoid the trap of
“work for work’s sake” and “struggle as a badge of honor”.
Pick important KPIs for your work and your business and use them as your yardstick.
27
8. G ETTING O FF D EBT
Many authors market their books and products to struggling folks. That’s why the literature
often ends up being rather simple and with a focus on overcoming debt.
I find some of the tips on overcoming debt good but far from enlightening.
At the core, overcoming debt is composed by three simple steps. And they don’t need a book.
They are:
1. Increase your earning

2. Decrease your spending (well) below your earnings
3. Pay off debt
However, for completeness of information, I give you here some of the best debt reduction tips
I have found in the literature:
1. Debt Listing
List all your debts so that you become aware of how much you owe and how much you’re
paying for debt servicing.
This will give you motivation to stop wasting money on interest charges.
2. Start Paying off

Some authors recommend you start paying the smaller debts as the progress and easy wins
will help you tackle the bigger ones.
This could make sense if you need motivation. But if you want to approach it rationally, start
paying off the most expensive (for example: credit card will likely take higher priority compared
to mortgages).
3. Limit charges
Many banks have high costs to keep your account open. Some charge you high fees for
overdraft
• Shop for banks with the lowest fees

• Try to go for online banks (usually cheaper)
• Consult credit card prospects and pick the one with the smallest charges
• Call your credit and ask for lower rates (chances are they’ll approve instead of risking to
lose you)
• Get a card with rewards that fits your lifestyle
• Set up autopayments so that you won’t have money available to overspend and you’ll
avoid late charges
28
4. Emergency Fund
An emergency fund will give you peace of mind and will help you avoid debt if you need quick
cash.
Keep in mind that emergencies aren’t really rare events.
Start with 1k that you will never touch unless you need for an emergency. When you use it,
replenish it right away.
Ideally, you’ll want to swell to the point where it can cover all your living expenses for 6 months
or longer. That way it will also cover the “getting fired” emergency.
5. Write Down All Your Expenses

This little trick can be a game changer for many to have a better overview and quickly reduce
their expenses.
6. Stick to Your Budget

Budget. And stick to it. Set aside money in advance for your expenditure and stick to it to avoid
“accidental over-spending”.
29
9. I NVESTING
Knowing how the market works is a complex topic and no single personal management book
effectively undertook the task of explaining it.
However, part of the reason is possibly because you don’t need to know the details of how the
market works to successfully invest.
Indeed, people who try to understand the market do it with one goal in mind: to “guess” where
the market will go so that they can buy low and sell high.
That’s a speculative form of investment based on the idea you can predict where the market or
an individual stock is going. But that approach is often the equivalent of using the financial
markets as a casino.
Let’s dig deeper:
Value VS Speculative Investment

Benjamin Graham divides investors between value investors -also called “Intelligent Investor”-
and speculative investors, also called “enterprising”.
Graham defines value investment as:
The result of a thorough fundamental analysis in the company in which you invest, which
results in the promises safety of principal and an adequate return
Any investment not meeting those requirements is speculative by nature.

Also notice the word “adequate” return. Value investing indeed is not looking for outsized
returns.
Intelligent investing for most people means you increase your capital over time, not that you
will double it in the short term. Beware of anyone promising you quick gains.
Taxes & Fees in Speculative Investment

The more you trade, the more you risk. And the more you trade, the more taxes and fees you
accrue.
That means that the numbers are simply stacked against lots of successive speculative
investments. To gain with speculative investment you need to win many more times than you
lose, which is unlikely and, often, a fool’s quest.
Speculative Investors
Speculative investors trade a lot. They often look at charts to predict what the market will do
(technical analysis), but too often many speculative investors are just looking at the
“sentiment” (ie.: the news) and buy and sell depending on how they feel.
30
That’s a strategy that is almost sure to lead to losses. The natural human psychology simply
does not do well in the market.
If you want to become a speculative investor you need to learn not just the technicalities of
the markets, but also how your psychology is working against you (ie.: selling when everyone’s
panicking and buying when everyone’s excited).
Here are a few psychological biases:
Confirmation Bias
Seeking confirmation of your investment decisions and beliefs instead of looking for opinions
to contradict them
Trend Extrapolation
Believing a current short term trend will continue.
My note: one could say the same about the stock market “always going up”.
Overconfidence
We overestimate our abilities.
Greed and Gambling

We have a tendency to look for the home run, the big payday, the lottery win. But it’s slow and
steady that wins the game.
Investing Home
The tendency is to invest in companies and markets geographically near. Diversify
internationally instead.
Loss Aversion and Negativity

During financial turmoil and bear market your brain will want to panic. Don’t. And do what’s
logical, not what your pain avoiding brain tells you.
Enterprising Commandments
Graham’s tips on enterprising investor are:
• Don’t trade daily
• IPOs are often over-hyped (and overpriced)
• Junk bonds are risky
• Only look into foreign bonds if the expenses are lower than 1.25%
• Great companies don’t necessarily make great investments
• Temporary setbacks and unpopularity can be great buying opportunities
31
Speculative or Value?
You know the answer by now.
Graham is clear that few people should follow the enterprising investor path. Unless you’re
very knowledgeable and spend lots of time on it, you should expect to achieve lower returns
with an enterprising investor strategy.
If you are very, very passionate about markets (I was), then take the time to become an
enterprising investor.
Otherwise, stick to a defensive
Whatever you pick, make sure you’re serious about it.

Statistics say that most speculative investors lose money in the stock market. So if you decide
to be an enterprising investor, make sure you must invest time and effort in your portfolio and
make sure in the beginning you only trade paper money.
Value Investing
Graham admits that value investing is not exacts science but entails a margin of art,
experience, guesswork and risk. However the risk is not so high when investing in high grade
companies because, even if you got it wrong, the company might not grow but it will rarely sink
either.
He advises to buy a stock when, based on your analysis, it’s at more than 50% discount.
Defensive Investor
There’s a third category of investment that Graham and most other financial experts
recommend to newbies.
It’s especially great to use these days thanks to the emergence of ETF.
The great news? You don’t need to know much about the market at all to be an effective
defensive investor. Time and effort spared for you! Yaaay!
The defensive investor does the following:
Buys and Holds (ETFs)

He buys several different strong stocks to spread the risk and holds them for the long haul. Or,
even better, buys ETFs replicating indexes.
Most authors indeed recommend that you pick an exchange traded fund (ETF) to replicate
large and diversified indexes.
For example you can pick an ETF for the S&P500, for European countries, the emerging
markets or for the whole world.
Doesn’t Overtrade
This is typical of guys starting out. I know it was for me.
Doesn’t Time the Market

Don’t try to time the market.
32
Tune Out Noise

The market is irrational and often random. Don’t overreact to the daily price swings.
Stays in the Market

Robbins says that the biggest danger you face is staying out of the market. The longer you
stay out, the more your sabotage your compound interest.
Compound interest requires you are always in the market.
Market Allocation
I can’t tell you the exact market allocation and even less what to exactly buy (I wouldn’t know it
myself for sure and I recommend you stay suspicious of everyone passing you stock picks).
But I will tell you what Robbins recommends in MONEY Master the Game. This is based on
what Ray Dalio, author of Principles and one of the best fund managers in history
recommends.
And it’s this portfolio allocation:
• Long term US bonds: 40%

• Stocks: 30%
• Intermediate US bonds: 15%
• Gold: 7.5%
• Commodities: 7.5%
Back testing this portfolio, you would have solidly beat the market. The secret of this
allocation is that it heavily shields you against losing years, and losing years are highly
damaging because of mathematical properties (ie.: if you lose 50% you need to then make a
100% gain to simply break even).
However, as we’ve seen before, that something worked in the past does not mean it will work
in the future.
But it can be a solid base to start from and I’d feel a bit safer just because Ray Dalio is behind
it.
Watch Out for Managed Funds (Avoid!)

Telling you to avoid managed funds, also often referred to as mutual funds- wouldn’t be
correct because there are a few very good ones.
Ray Dalio or Warren Buffet are fund managers after all and they returned for many years more
than the overall market.
However, only very very few people and managed funds manage to beat the market on a
consistent basis. Consistent basis is the key here, because every year 50% of the funds and
50% of people will “beat” the market.
But plot those results over 10 years and you’ll see most of the times it was just dumb luck.
33
ETFs instead are non-managed funds because there’s nobody to buy and sell but they
passively replicate the index(es) that they mimic.
But this is the main reason why mutual funds are often a bad idea:
High Fees Destroy Your Compound

There is a litany of hidden fees when investing in mutual funds, and the average total fee adds
to 3.17%.
That’s huge when you take into account that you will be missing on a huge chunk of
compound interest year after year.
This is a good reason enough to avoid managed mutual funds.
But if you need more:
Managed funds embellish their returns

Managed mutual funds mask their returns by only stating the nominal changes. But nominal
changes are not “real” because, mathematically, a 10% drop on your capital won’t be offset by
a 10% increase.
Watch out for brokers

Brokers need to increase your money and the company’s money.
The two don’t always go together and they are often mutually exclusive. That means brokers can have
some serious conflict of interests. For those who live in the US, a registered investment advisor is a
much better choice.
Your 401(k) is not a good investment vehicle

The 401(k) in the US has long been the workhorse of safe retirement, a bastion of security.
Many authors also recommend you use 401(k), including Rami Seti in I will Teach You to Be Rich.
But Robbins says that under heavier scrutiny it’s not a good investment unless your employer
substantially matches your contributions.
401(k) is not good because it taxes your withdrawals and doesn’t do anything to shield you from the
timing risk (ie.: what if you need to retire your money during a financial crisis?).
Target Date Funds

Seti and Robbins also disagree on “target date funds”.
Target date funds start very risky when you begin your contribution and become progressively more
conservative as you get closer to retirement.
The idea is that by being more conservative as the target date draws closer you will not lose much on
your retirement day if there will be a financial crisis.
Robbins says that the idea is good, but it often rests on a bad concepts: that bonds are safer than stocks.
And that’s not necessarily true.
34
Investing For Retirement

Tony Robbins explains that with the advances in medicine we can expect to live longer, and
that also means that once you retire you need to know how to allocate your resources.
Treasuries and CDs provide terrible returns, so he recommends fixed indexed annuities
Stick to What You Know

As your money grows you will be tempted to investing in cool things and trying new stuff.
Don’t. Stick to investing in what you know and what you can control well.
That’s what Warren Buffet always did. Before IBM, for decades, he never invested in tech
stocks because he said he didn’t understand them.
Cap Your Downside

Don’t put your money in any position where risks are too great compared to the upside. Or,
most of the times, avoid any situation where your capital can be wiped out. Gambling for
example doesn’t allow you to cap your downsize because you risk it all.
To avoid protect your capital, get insurances.
Some authors also recommend you insure your future income.

You never know when you won’t be able to work anymore, or when you won’t want to work
anymore. That’s why you need to set up systems that will ensure an income anyway.
Automatic Withdrawal
I like the idea many authors espouse to make your investments automated. At the beginning
of each month, as soon as you get paid, set up an automated withdrawal towards your
investment fund
Invest Early
The earlier you invest, the more you’ll able to take full advantage of the compound interest.
35
10. C HILDREN ’ S E DUCATION
We have spoken of how wives can become an expense.

And the same is true for children.
I didn’t know where to put this topic, but it’s an important one both for you and the future of
your children, so I decided to sneak it in.
The Millionaire Next Door makes a compelling case that the biggest indicator of productivity in
offspring is whether their parents support them and how they support them.
And it’s exactly how most people intuitively grasp: freely given money changes people’s
behavior and character for the worst.
Too much too soon without earning and without learning how to generate money spoils the
children who become addicted to their parents’ handouts.
This is what happens when you give too much to children:
• Consume more than they save and invest

• Don’t distinguish between their wealth and their parents’ wealth
• Are significantly more dependent on credit
How can you help your children without spoiling then?

It’s not diseducative to give, as long as they are disciplined and can generate their own
income.
Stanley & Danko research shows the best gift you can make to your children is the tuition. The
second is to create a supportive environment that rewards education, individual achievements
and responsibility.
Here are a few rules for when you’re wealthy:
1. Don’t let them know you’re wealthy (at least until they’re professionally established)
2. Teach them discipline and frugality
3. Emphasize their achievements, not their material status symbols
4. Teach them values beyond money
36
11. A LTERNATIVE T AKE O N W EALTH
On a book on money on wealth I also had to put alternative views of money. Such as money
and happiness and the way with which money can buy you freedom and time instead of simply
just buying things.
Money Won’t Buy Happiness

It’s a cliché, but there’s also a lot of true in it. Money does help in buying happiness, but if
you’re chasing money to get happiness, chances are you won’t get it.
Tony Robbins says money is a multiplier, meaning that if you’re unhappy now, money will
make you even more unhappy because you’ll tell yourself “wow there’s really nothing to be
happy about in life”.
And if you’re happy, you’ll find more ways to experience and make yourself happy.
Money Toys Won’t Make You Happier

All the toys you can buy with money will make you happy in the beginning, but chances are
that with time you’ll get used it to them.
A Ferrari will just be a car after a while. And you won’t be much happier in your 7 rooms house
than you were in your bachelor pad.
This phenomenon is called hedonic treadmill.
Put Money in Perspective

A healthier way of looking at money is to see it just as one of many parts of succes and
fulfilment.
For example, you can make the process of getting to money inherently more enjoyable and put
more focus on cultivating meaningful relationships as well.
Money Isn’t Always Freedom

Tim Ferris makes a compelling case that sometimes money can enslave you.
He says that people who work with a financial goal in mind before stopping or relaxing to enjoy
life more never actually let up. They repeat themselves “I’ll work hard until I max X money”, but
X is an ever increasing target.
The solution, he says, is to plan in advance your own escape.
Money Multipliers: WWW

Tim Ferris says that the value of money is multiplied by the level of freedom it gives you.
He mentions the “3 W”, such as:
• When you do it
37
• Where you do it
• With whom you do it
Eliminating, outsourcing & systematizing

If your goal is to free your time your number one priority should be that of working less and
building systems that work without you.
Let’s go in order:
1. Eliminating
Eliminate all tasks you don’t necessarily need.

It might seem obvious, but eliminating isn’t just about eliminating what you don’t need. It’s
also about eliminating all low priority tasks.
I’ll give you two examples: I was writing reviews on books that nobody cared about. Why
wasting time on writing well, looking for pictures, and formatting when only one person a
month was going to check it?
And why going shopping when you can order food online?
2. Outsourcing / Delegation
Outsourcing isn’t just about saving money. It’s about saving time and reducing hassles. So
even when you can do it yourself more cheaply it can still make sense to outsource.
Outsourcing biggest dangers:
• Eliminate before you delegate: never delegate something that can be eliminated
• Never delegate something that can be automated
3. Systematizing / Automating
The E-Myth by Michael Gerber is a book fully focused on building business systems that work
without you.
First of all, he warns you that starting a business simply because you don’t want a boss
anymore is a common way of failing. A new business requires skills that employee often don’t
(yet) possess.
You need to be a good manager and a good entrepreneur on top of being able to do the task.
Then he says that a great business is built on systems, not on people. People should be able to
come and go and the business still able to churn along.
To get there you need a switch in mindset. From working in your business to working on your
business.
Instead of being the sales rep, be the head of business development looking to automatize the
38
sales rep position or to fill it with someone.

That also means simplifying the tasks as much as possible so it needs little or no supervision.
As you build a business, ask yourself the following questions:
• How can you get your business to work without you

• How can you make your people independent from you
• How can you build a business you can replicate a hundred times
• How can you set your time to do what you love instead of what you have to
And these are the two biggest dangers of automation:
1. Automation to inefficient operations magnifies the inefficiency

2. Automation applied to efficient operations will magnify the efficiency
39
RESOURCES
Benjamin Graham, “The Intelligent Investor: The Definitive Book on Value Investing. A Book of Practical
Counsel (1949)
Burton Malkiel, “A Random Walk down Wall Street: The Time-tested Strategy for Successful Investing”
(2016)
David Bach, “The Automatic Millionaire, Expanded and Updated: A Powerful One-Step Plan to Live and
Finish Rich” (2016)
Dave Ramsey, “The Total Money Makeover: Classic Edition: A Proven Plan for Financial Fitness” (2013)
Daymond John, “The Power of Broke: How Empty Pockets, a Tight Budget, and a Hunger for Success Can
Become Your Greatest Competitive Advantage” (2017)
Donald Trump, “The Art of The Deal” (2015)
Ernie J. Zelinski, “How to Retire Happy, Wild, and Free: Retirement Wisdom That You Won't Get from
Your Financial Advisor” (2009)
Gary Vaynerchuck, various sources
George Clason, “The Richest Man in Babylon” (2002)
Grant Cardone, “The 10X Rule” (2011)
Grant Cardone, “The Millionaire Booklet” (2016)
Grant Cardone, “Be Obsessed or be Average” 2016
Harve Eker, “Secrets of the Millionaire Mind: Mastering the Inner Game of Wealth (2005)
Henrekson, Magnus, and Tino Sanandaji. "Small business activity does not measure entrepreneurship."
Proceedings of the National Academy of Sciences 111.5 (2014): 1760-1765.
http://www.pnas.org/content/111/5/1760.full?sid=d6ffdb16-b18d-4190-88a9-52b7b94c1847
John Bogle, The Little Book of Common Sense Investing: The Only Way to Guarantee Your Fair Share of
Stock Market Returns (2007)
Kevin Johnson, “The Entrepreneur Mind: 100 Essential Beliefs, Characteristics, and Habits of Elite
Entrepreneurs” (2013)
Napoleon Hill, “Think and Grow Rich” (1937)
Noam Wasserman (2012), “The Founder’s Dilemmas: Anticipating and Avoiding the Pitfalls That Can Sink
a Startup” (Princeton University Press).
40
Levine, Ross and Rubinstein, Yona (2015), “Smart and Illicit: Who Becomes an Entrepreneur and do they
Earn More?” (Archived by archive.org:
https://web.archive.org/web/20160222033032/http://faculty.haas.berkeley.edu/ross_levine/Papers/s
mart_and_illicit_24sep2015.pdf)
Jay Samit, “Disrupt You!: Master Personal Transformation, Seize Opportunity, and Thrive in the Era of
Endless Innovation (2015)
MJ DeMarco, “The Millionaire Fastlane: Crack the Code to Wealth and Live Rich for a Lifetime (2011)
Nassim Taleb, “Fooled by Randomness: The Hidden Role of Chance in Life and in the Markets” (2005)
Ramit Seti, “I Will Teach You To Be Rich” (2009)
Robert Kiyosaki, “Rich Dad Poor Dad: What the Rich Teach Their Kids About Money That the Poor and
Middle Class Do Not!” (2000)
Steve Harvey, “Act Like a Success, Think Like a Success: Discovering Your Gift and the Way to Life's
Riches” (2015)
Thomas Stanley, “The Millionaire Mind” (2001)
Thomas Stanley and William Dano, “The Millionaire Next Door: The Surprising Secrets of America's
Wealthy” (2010)
Timothy Ferris, “The 4-Hour Workweek: Escape 9-5, Live Anywhere, and Join the New Rich” (2009)
Tony Robbins, “Unshakeable: Your Financial Freedom Playbook” (2017)
Tony Robbins, “MONEY Master the Game: 7 Simple Steps to Financial Freedom” (2016)
van Praag, van Witteloostuijn, van der SluisReturns. “for Entrepreneurs vs. Employees: The Effect of
Education and Personal Control on the Relative Performance of Entrepreneurs vs. Wage Employees”
(2009)
Wallace Wattles, “The Science of Getting Rich” (2018)
41

Wealth Guide

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Wealth Guide

Uploaded by

Copyright:

Available Formats

Wealth Guide The Power Moves

STATE OF THE LITERATURE

THE TWO TYPES OF GET RICH APPROACHES

1. The frugal employee who saves and invests

2. The entrepreneur who risks and builds businesses

I will call this the hustler way.

And there is a third type of literature:

3. Analysis and researches of the traits of rich people

As usual, I will present you will all three.

A Note on Tony Robbins Quotations

A Note On Cand Do It Attitude

You may be heard some crazy examples of compound interest rate.

Criticism of Compound Interest

• You’ll be old before you enjoy your money

• The past doesn’t equal the future

2. Stock Market Is Safe (Is It?)

Hedging Stock Market Risks

An asset is simply what puts money in your pocket.

And a liability is:

A liability is anything that takes money from your pocket.

Rich people buy assets

Asset liability review

• Do you really need a car?

• Do you need gym memberships if you don’t go?

• Do you need a mortgage to buy a house?

• Do you need a pet?

• Do you need Netflix, Tinder Pro, phone contract?

• Low priced flats for renting

• Dividend paying stocks

• Storage units and sell space

• Animals you can breed and sell puppies from

1. Spend Less Than You Earn

2. Invest Your Money

3. Cut Your Expenses

4. Buy, Don’t Rent

place for a while, then it might make a lot of sense to buy.

Grant Cardone says that being rich is 2/3 mental.

2. Vocation, Vocation, Vocation

5. Leverage Financial Assets

Don’t Invest in The Stock Market

6. Millionaires & Risk

7. Be, Don’t Show

8. Internal Locus of Control

9. Rich People Think Big

10. Spend Time with Rich People

11. Admire Success

12. Opportunities Focus

13. Paying Little Taxes

2. Spending Exceeds Income

3. Fall For Instant Gratification

4. Lottery Tickets Mentality

5. Money Plucked on Trees

7. Waste Time to Save Little

9. Middle Class & Average Thinking

Problems with the slowlane middle class:

• Trade weeks for weekends

The Middle Class Curse

The Paradox of Practice

• Take advantage of grants

1. Don’t pay the initial ask price

Pay Yourself First

Work to Learn (Not for Money)

Shun General Knowledge

Get Specialized Knowledge