We often look for quick fixes in this social media dominant, microwave world. Short form videos on Instagram and TikTok dominate. We digest information in these bite sized chunks of digital media. And, we often rely on audiobooks and podcasts while driving if we are looking to consume broader sets of information.
However, I am still a firm believer in traditionally printed books. Finding time to read a book allows you to unplug from the digital world. I love re-reading passages to get deeper understanding, writing notes in the margins of books and cross-referencing things I’m reading with other sources. You can’t do this with audiobooks and podcasts.
Obviously, I am a fan of podcasts. I co-host Rising to the Top! (Please subscribe!)
But reading articles and books are still my favorite form of learning and finding new sources of information. And, while I do indulge in the convenience of apps and digital forms of shorter form articles … I am a strong advocate of reading physically printed books.
The things I am currently putting into practice to generate multiple streams of income came from reading (and re-reading) books. I will read books cover to cover. But, I will also skim books looking for tidbits and then deep dive into concepts that catch my eye. This could be something new that I discovered as I skimmed a book for general details and then scanned a specific set of information. Or, it could be an idea that I’m familiar with but is presented in a unique or interesting way.
I believe the two most important skills to have are reading comprehension and basic math. Both can be improved with practice. Both are critical to investing with success.
Here are 3 Books I recommend you read to increase your financial literacy in order to think differently about money, reduce the risk of investing and manage your resources to create multiple streams of income.
- The Bible: Full disclosure: I am a Christian. And, I realize that not everyone who might read this will be of the same Faith. Before you give me the John Mayer treatment … hear me out. God and Love are the most discussed topics in the Bible. Do you know what is the next most discussed topic? Money! And, we aren’t just talking about “the love of money being the root of all kinds of evil” scripture. While Jesus definitely highlights how followers must avoid making money our God … the Lord also teaches in Luke 16:8-9 (The Parable of the Unjust Steward) that “the sons of this world are more shrewd in their generation than the sons of light. And, I say to you, make friends for yourselves by unrighteous mammon, that when you fail, they may receive you into an everlasting home.” Jesus recognized that money could be used as a tool to help and serve others. So, money management is important! Beyond that, Proverbs and Psalms are full of sound financial management discipline focused on saving and the appropriate use of money.
- Rich Dad, Poor Dad: An absolute classic from Robert Kiyosaki. While Cashflow Quardrant is my favorite Kiyosaki book, Rich Dad, Poor Dad is the book that changed the way I thought about assets vs. liabilities. It changed my whole approach to how I thought about investing and what I pursued. Before Rich Dad, Poor Dad, I was all about capital gains when I “invested”. This led me to flipping houses, promoting concerts and investing in mutual funds. Rich Dad, Poor Dad sent me on a journey in investing in assets, investments that generated cashflow without requiring me to work in the business 60+ hours per week to drive that income. It took me years to change my mindset about true financial freedom. Most of my effort is on creating assets that create cashflow. Conversa Elevated and Black Alum Gear are the two most prominent examples of my goals in creating cash flowing assets. Rich Dad, Poor Dad helped me frame the mindset to learn more about what that truly means.
- The Richest Man in Babylon: Another classic that predates Rich Dad, Poor Dad. It is a dynamic mix of personal finance gems and fundamental investing advice. As an example, the Fight Cure: Make of thy dwelling a profitable investment, is the hallmark of my investing strategy. And, while this philosophy runs counter to Robert Kiyosaki’s perspective that the house you live in is not an asset because you’re not cash flowing in a primary residence (AirBnB aside) … I’m of the strong belief is that owning your own home is the most important step anyone can take in building wealth. First, getting a loan to purchase a home is probably the most complicated financial transaction most Americans will ever do. The process forces a prospective buyer to have a solid credit score, low debt to income rations and some cash reserves to responsibly get into a home. Secondly, while asset appreciation is speculative, real estate values historically rise much more than they fall. Tied to that, paying your mortgage each month goes directly towards an increase in home equity. As values rise and the underlying mortgage shrinks … the result is more capital available for other investments. Also, interest and homeowners insurance payments could be tax deductible (Note: I am not an accountant. Please seek accounting advice to clarify your own individual situation). Finally, real estate is not easily liquidated … which prevents most homeowners from making rash decisions to sell their house. This means you are more likely to hold on to property and will make deliberate decisions when it comes to liquidating the investment. Okay, that was a long plug for homeownership when I was supposed to be talking about The Richest Man in Babylon. However, you can see how this book has influenced my thinking. This 1926 book stands the test of time and is definitely one of the 3 books I recommend you read to establish a solid financial literacy foundation.
I could be wrong. But I doubt it!