Curiously, the author challenges you right at the beginning to define what "Rich" really is. To every person it may be a different thing, but at least it needs to be defined. How do you define something that is intangible? Lifestyle is a starting point. The author makes a good case for what a rich person is. How he or she lives, within what means, and how that can be represented. Strangely, it is not a number. This was amy first surprise, and I was in for many more. It got my brain stimulated as I got surprised by what the author had to say.
I was expecting a more basic attitude of "X amount of wealth can be reached if you do Y by time Z". I was wrong. If your lifestyle is without spending control, any large fortune will run out, making the owner go broke. A large amount of celebrities have been in this situation. Even second or third generation business owners have struggled with this hard reality. Within private banking or family offices, there is a clear fear. Going back to the Dutch fortunes of Amsterdam around 1600, poor children could only afford wooden clogs, not leather shoes. Formerly wealthy families who went bust, were often said to go "clogs to clogs in 3 generations". It remains a financial challenge even in this day.
There is sadly no solid shortcut. Even a billionaire can go broke. Donald Trump went broke in the USA, even Brazilian billionaire Eike Batista went broke. It can happen, and the challenge is why. Spending, leverage, and preparing for your investments, this is what the author explains very well. However, it all must start with a clear plan. Thinking is never easy, especially when it concerns your own future. Given a few days to absorb, any reader starts to understand the point, and how to take personal action. The real test is can you then think of and then define your own wealth plan.
You learn in a very easy way to understand the basics. What you want, what you need, and what you work for, all have to be in sync. Without a plan, you go broke no matter how much money you make. You have to imagine your dreams, goals and desires clearly, in order to recognize them when they appear or walk by. If you think that an amount of cash will create this level of satisfaction, you may find yourself trapped on a rat race ride without end, or worse, one that will end badly.
The Top 3 Takeaways from this book that really impact any reader are:
1) There is no limit to being prepared about your own life. It you can figure out where you want to go, then you can recognize all of the signs of how to get there. It is a mindset that you learn to trust and act upon.
2) By having a destination, everything else around you become a simple choice of being helpful or not to your plan. Do you want A? yes, but will it help you get to your destination? if not, then put it off and consider it later. Focus on what you really need to get where you really want to go.
3) The long history failure in many both rich and poor proves that no plan leads to a failed destination. Every person needs to think for themselves and define where they want to go. It is a classic case of, "if you do not know where you are going, you will never get there." You will also not know when you pick up what you need, even when it is right in front of you.
2) By having a destination, everything else around you become a simple choice of being helpful or not to your plan. Do you want A? yes, but will it help you get to your destination? if not, then put it off and consider it later. Focus on what you really need to get where you really want to go.
3) The long history failure in many both rich and poor proves that no plan leads to a failed destination. Every person needs to think for themselves and define where they want to go. It is a classic case of, "if you do not know where you are going, you will never get there." You will also not know when you pick up what you need, even when it is right in front of you.
All core rules are worth building any career and wealth goals around. They are foundations that help define why you work, for what purpose, and for what return and satisfaction personally. If you wonder about how to be happy or how to find personal satisfaction, this may help in a small way. Very much worthwhile as a read. This book stretched my mind and challenged my own values both financially and personally, two ways that I never expected. Highly Recommended.
Please visit us for our Friday Feature Review where TMJ Partners will review books, movies, conferences and anything else with a financial theme. Follow us now for our free weekly updates, just click here. Thank you for reading and learning more about how money is made in finance!
For more Buy-Side and Sell-Side roles in Asia-Pacific, contact our TMJ Partners Japan & Asia Finance team.
Tokyo Tokyo
No comments:
Post a Comment