Book review: Billionaire in Training by Bradley Sugars

Billionaire in Training (Because Millionaire just isn’t rich enough…) by Bradley J Sugars

Synopsis:
As the title suggests, this book is focused on creating and continuously increasing your wealth. The author explains important concepts such as cash-flow and passive income and looks at different stages in business and how people at those stages can improve their wealth situation. The method this book uses is on creating a business and building that business into a profitable one so you can sell and repeat the process. The author looks at ‘five levels of entrepreneurs’ and how each level thinks about money and how they can reach the next level.

What I gained from reading this book:
I had low expectations for this book based on the title. I expected another book on how to use massive amounts of debt and buy foreclosed properties to build wealth. I was pleasantly surprised that this was not the case. After the first few chapters I was worried it was just another marketing hype book focused on selling seminars and other books by the author. While this is partly true, I did find valuable information that really made me think about my current situation and why I need to do something about it.

First, the negatives. In one way, this book is a vehicle the author uses to sell his workshops, business coaching services, books and a board game. Almost every chapter you are reminded that you can contact an ‘ACTION business coach’ to get you on track to wealth. For some people, it will be too much marketing but for me it wasn’t enough to annoy me. It’s actually interesting to read the book to see the techniques the author uses to promote his other products and services. After all, his cross product selling is one of the reasons he is rich! One technique that is commonly (or overly) used is when the author uses uppercase type to highlight certain words. Turn to any page and you will without a doubt find words in uppercase like RICH, LEAD, PASSIVE, WEALTH, MAKE MONEY WITH MONEY, CASH etc. Whenever I see this it puts me off because it has been abused so many times by bad salespeople. If I make EVERY other WORD uppercase, it REALLY gets ANNOYING to read. Also, you begin to THINK that everything you are READING is only HYPE and SALES PITCH. But in this case, I didn’t believe it was hype.

Another thing that bothered me was how many times the author would say something like “Later I’ll show you how to…” “More on this later” “I’ll go into more detail later”. It makes the whole book sound like a sales pitch. Most people will probably be fine with that style of writing, but it bothered me.

Now for the positives. I found most of the points the author made had excellent foundation and really made sense. For example, the author suggests that you do not create a business in a field you excel in, which is something most people would think the opposite. So if you can give a good haircut, you shouldn’t start a hairdressing business. Why? Because instead of working on the business and thinking of ways to increase cash-flow and profitability, you will be stuck cutting hair. Also, because of your skill and knowledge as a hairdresser, you won’t be happy with the other employee’s haircutting skills so you won’t be able to move away from that position yourself. In essence, you will be stuck with a job instead of running a business. Points like these really give insight as to why so many businesses fail. I really felt that most of the points were very logical. Simple observations like how an employee ‘earns’ money while a manager ‘makes’ money really give good insight to how people in different positions think about money.

Overall, I felt I really learned something from this book and will really try to use the concepts in my life.

As a side note, I did notice after reading it that although the title reads “Billionaire in Training”, the word Billionaire wasn’t used once in the entire book. Or at least I never saw it. Which makes me believe the title was chosen for marketing reasons, not to describe the content. Hmm.. Bit misleading but still a good book.

Positives:
Many of the points make sense. Some of the points are very unique and stand against popular belief, which gives a great way to look at your current situation and how to improve it.

Negatives:
One of the purposes of the book is to promote other products and services. Some people may find this annoying as it does distract from the real information. The use of uppercase to highlight words is overused and cheapens what the author is saying.

Recommended for: People wanting to quit being an employee
This book gives an excellent overview on how to move from being an employee to a self-employed person to a manager all the way to an Entrepreneur. While the book may be light on information, the information it does provide is very thought provoking and logical.

Genre: Wealth

Overall rating: 7 out of 10 stars



Australians can buy the book by clicking the picture below:


Where to from here:
In this book the author mentions The E-Myth Revisited and I suggest this book after you have read this one. The book also has a recommended reading list of books I have not read yet but would be a good source to continue on the topic. It should be noted that 8 out of 17 of the books listed in this list is by Brad Sugars - another example of cross selling in action.

If you have read this book, feel free to give it your own rating by posting a comment below.

Book review: Good Business Bad Business by Roger Green

Good Business Bad Business (The rules of small business and how to break them) – Roger Green

Synopsis:
This book takes a wide view at starting and running a small business. The author splits the book into two viewpoints: ‘good business’ and ‘bad business’. The ‘good business’ character resembles a formally educated businessperson while the ‘bad business’ character can be thought of as a college dropout opening a trendy coffee shop. The book covers topics expected such as planning, recruitment, managing, bookkeeping and others.

What I gained from reading this book:
When I picked this book up I was quite optimistic that it would compare practices that did and didn’t work (what I assumed ‘good business bad business’ meant). I was sadly mistaken. After reading the high quality small business book ‘The E-Myth Revisited’, my expectations for this book was way too high and I was left frustrated after the first few chapters. I struggled to finish the book and the only reason I did finish it was so I could write this review.

My first frustration was with the title. Good Business Bad Business suggests (at least to me) that there is a good way of running a business and a bad way of running it. I couldn’t have been more wrong with my assumption. A more accurate title would be ‘Formal business and Informal business thoughts and practices’, but even that would be misleading. It’s hard to explain the actual difference between the characters.

My second frustration was the actual content of the book. The blurb reads, “[The book] takes the form of an argument, with two characters... ..They yell, abuse, insult and caricature each other as they disagree on all the issues facing small businesses”. That pretty much sums up the quality of the work. Any book starting with a concept like that is doomed to begin with. Instead of being informative for readers, you are given a jumbled conversation with no conclusions. Which do you think you would learn more from, hearing two people argue pointlessly or attending a seminar on sound business practices? It really is pointless rambling. Take this line from the ‘good business’ character: “In Australia there are also business angels, rich people who are looking for an easy investment where some idiot does all the work. They often provide a bit of advice with their capital. They drive old Mercs. It’s a good racket.” Thanks, I learned nothing from that. How are you supposed to learn anything when both of the characters ‘disagree on all the issues’?

My next frustration was the quality of the advice given. Take for example what the ‘good business’ character has to say about the use of debt to fund your business: “Debt is good... Look at that guy driving a Ferrari; he’s borrowed millions... Most of the corporate giants have used other people’s money to buy businesses. You can too. It’s magic.” So this is the quality of the advice the author comes up with? Debt is magic? Most corporations have used it so you can too? I’m sorry but this is just not good enough. It really isn’t. It worries me that some 18 year old straight out of school will read this and think that it’s okay to load up on debt and run a business, buy a Ferrari and everything will be okay. After that little trip on how magical debt is, I expected some warnings on how debt can be bad and how it can ruin people’s lives. Nope. I had to wait until the ‘Bad Business’ character started his rambles on debt to hear any negative on debt. But that still didn’t have any warnings.
Another example of dangerous advice this author gives is when the ‘Good business’ character explains the benefits of using a company structure. He says “If you have run up a few too many debts, just pull the pin and toss the company in the direction of the creditors. It disappears in a cloud of smoke, leaving the shareholder and director intact”. I wish I was back studying company law at university when I read this to show it to my lecturer for a laugh. All corporation law students know it’s possible for a court to ‘lift the corporate veil’ and hold the owners liable. This is just bad information. I could continue to point out all the problems and bad advice this book gives but I think you get the point.

I have many more frustrations but I’ll finish with one more. The use of ‘characters’ to explain the two viewpoints creates a problem. So many times the pages are filled with junk the author has put in so you can get a feel for the characters’ thoughts. The ‘bad business’ character really does sound like a hippie activist with lines like “It’s like jumping into a wild river you’ve never travelled before. Forget the destination. Perhaps one of those waterfalls in the froth of chaos will take you to a beautiful place. Stay calm. Go with the flow.” I’m sorry but how is that remotely helpful in running a business? Rather than the author focus on giving readers valuable information and relevant advice, he is distracted by trying to give the characters a voice.

So in conclusion, what I learned from this book was that if you start with a bad concept (ie: centring your book on two characters rambling and arguing) you will end up with bad results. I’m sure the author feels the book was a success but for me it was just pointless.

Positives:
Despite my frustrations towards this book there are positives. Normally I try to stay objective in this section and leave my personal opinions in the ‘What I gained’ section. But in this case I’m so frustrated I chose not to list the positives.

Negatives:
Refer to ‘What I gained’ above.

Recommended for: Not recommended
This is the first book I have reviewed that I do not recommend. Normally when I read a book I don’t recommend I don’t write a review for it. But in this case I needed to point out that some business books aren’t worth your time.

Genre: Small Business

Overall rating: 2 out of 10 stars

Where to from here:
Read The E-Myth Revisited if you are considering starting your own business. It blows this book out of the water.

If you have read this book, feel free to give it your own rating by posting a comment below. I was very harsh and negative on this book so if you have read it and thought it was good, feel free to let me know in the comments below.

Four books you must read before starting your own business

If you are thinking about starting your own business, the hardest part is probably the very start. There is a wealth of information out there on a wide range of topics that business owners must know. Rather than guessing where to start, I have made this list of books that will give you a basic starting point with essential principles and concepts. After you read these books, you will know what needs to be done next.

1. The E-Myth Revisited

This book is an essential starting point for anybody considering starting their own business. The author explains to Susie, somebody who has already started their business, why her results have not been what she expected. A wide range of topics are explained very well from lessons in franchising all the way to the mindset a business owner must have.
By the end of this book, you will have a much clearer idea of what you need to do, and more importantly, how you must think.



2. MBA in a day

For those who don’t want to spend 3+ years studying business at university, this book is a way to gain a basic understanding of the principles and concepts that would have been taught. By no way am I saying that this book compares with three years of study, but it does give a good summary of the topics. Everything from accounting and finance to marketing and strategy is discussed.
After reading this book you will have a very basic understanding of all the topics you will need to understand to successfully run a business. From there you can find more books or even short courses on the specific subjects you want to learn. It is important to be aware of what you need to learn and why you should learn it. This book does a good job in increasing your awareness in business subjects.



3. How to win friends and influence people

No matter what type of business you plan to start, you will be involved with people. Even if you are starting an internet only business, your customer service and networking skills will determine your success or failure. This book teaches essential people skills that everybody in business must recognize and apply. Ever walked out of a store disgusted by the lack of customer service and decided never to go back? Well if you don’t have first class people skills, there is the chance that people will react that way to your business.
This book will teach you everything from improving customer (or supplier) relationships to handling conflicts and arguments. Applying the principles in this book is an easy and effective way to improve your business’ reputation.


4. Getting to YES (Negotiating agreement without giving in)

Like this book states “like it or not, you are a negotiator”. Regardless of your business, eventually you will need to negotiate with somebody. How you handle that negotiation (and all future negotiations) will have a huge impact of your business’ performance. Whether you are hiring somebody and negotiating their pay and benefits, or negotiating with your suppliers, having an understanding of negotiating and how to effectively do it is essential. This book is most effective to protect you from people who will try to take advantage of you or use dirty tactics. The small cost of this book outweighs the raw deals and manipulation you could have encountered had you not read it.
This book will introduce you to what negotiating is and what it is not. Most people don’t really understand negotiating to begin with so reading this book will already put you at an advantage. With starting businesses, the more advantages you can get, the more likely you will be successful. Even if you think you are a good negotiator, you can always improve. Grasp hold of any advantage you can get your hands on. A solid understanding of negotiating is a clear advantage.



I have chosen these books because they are topics that many people would neglect or completely overlook. The main lesson is that the right frame of mind is essential for success. Topics such as accounting or marketing are easy to learn, so after you read these books you can continue to study them as you like. On the other hand, developing the mindset capable of running a successful company is so important, yet many people don’t even consider learning how to do it.

What books do you read?

Hi all,

I hope you have found my reviews useful. If you have any recommendations for educational books or have read one worth mentioning, please leave a comment here on the book and your rating. It would be great to see what books you read and find useful.

More reviews to come,

Aaron

Book review: Good to Great by Jim Collins

Good to Great: Why some companies make the jump… and others don’t – Jim Collins

Synopsis:
Jim Collins and his research team set out to answer the questions, “can a good company become a great company?” and “if they can, how?”. By studying countless articles, interview transcripts and data, the research team came up with a definition of a ‘great’ company. The team would study two companies that started off in similar situations with similar future prospects but in one point in time (what they call the transition point) one company skyrocketed while the other withered. The great company (the one that skyrocketed) is compared to the comparison company (the one that underperformed). The results are the basis of this book. The chapters explain concepts and principles that were consistent among all the great companies but lacking in the comparison companies.
Companies such as Wells Fargo, Gillette and Circuit City (among many others) are analysed throughout the chapters. The book concludes with a very insightful FAQ section and wealth of information in the appendices.

What I gained from reading this book:
I read this book expecting it to be very similar to The E-Myth. It turned out to be very different. I am still undecided if I like this book or not. While I could clearly see that much effort has gone into the research, I’m not too convinced on the value of the results. Some concepts seemed so obvious that it seemed a waste of time to read about them.
The main problem I had with this book is the way the concepts were explained. Phrases such as ‘Getting the right people on the bus’, ‘the hedgehog concept’, ‘the three circles’, ‘grasp the flywheel, not the doom loop’, ‘level 5 managers’ pretty much sum up the type of lingo used throughout the entire book. I was expecting straight forward explanations and was disappointed to find that most explanations followed the lines of ‘make sure you get the right people on the bus in the right seats and the wrong people off the bus’. While using metaphors continuously may work for some people, it sure didn’t work for me.
Most people could probably guess the principles and values the great companies have before even picking up the book. So I was not impressed when I came across the part where the author explains why the company that gave the executives lavish perks in expensive buildings underperformed the disciplined company that cut executive’s pay 75% when times became tough and ran the business in a dental sized suite.
Although I do feel that most of the findings could have been explained better on a single A4 sheet of paper, I did enjoy reading this book (only some parts). For example: hearing about Walgreens and how they crammed so many stores in a small area and why was very interesting.

Positives:
Provides insight into many great companies and their culture. Very thorough explanations on the principles and concepts. Plenty of information in the appendices.

Negatives:
Most concepts and principles are obvious before even reading the book. A lot of buzz words and metaphors are used that may distract rather than assist. The viability of the study and the results is questionable.

Recommended for: Small business owners
I recommend this book for small business owners to get a better understanding of the types of principles and values they should apply to their business. Although many of the principles are obvious and common sense, it always helps to read up about them to help you apply them.

Genre: Business

Overall rating: 6 out of 10 stars

Australians can buy the book by clicking the picture below:

Where to from here:
I recommend reading The E-Myth: Revisited instead of this book. Read my review to understand why.

If you have read this book, feel free to give it your own rating by posting a comment below.

Book review: The 7 Habits of highly effective people by Stephen Covey

The 7 Habits of highly effective people – Stephen Covey

Synopsis:
This book focuses on principles (or habits) that can help you build more effective relationships, learn to trust and be trusted, communicate better and become more efficient is your life. It is a self-help book that takes a look at your principles and values and whether they are effective or not.
The book opens by discussing paradigms and how we view the world. This leads on to the first habits that deal with ‘private victories’ or in other words, rising from a dependent person to an independent person. The later habits deal with ‘public victories’ or in other words, rising from an independent person to an interdependent person.
From time management skills to analysing paradigms of human interaction, the book looks at many different aspects of life and how you can improve those situations. The appendixes contain highly detailed information so the flow of the book isn’t disrupted.

What I gained from reading this book:
This is an incredibly detailed book that is full of useful tips and suggestions. The way the seven habits are described and how they connect are explained so well. I really enjoyed this book because it has no ‘quick fixes’ or gimmicks. The book follows a very logical flow: starting from analysing paradigms before moving on to the habits. The step by step flow of the chapters and the habits makes it very easy to understand. The main gain I received from this book would be the increased understanding I have on my own paradigms and what habits I need to improve.
When I first picked up the book and read the titles of each habit, I thought they sounded too obvious and the book would contain very general advice. I was surprised that this was not the case and the simple headings are very misleading for the quality of the information given. I realise now that the simple headings such as ‘Think Win/Win’ or ‘Be Proactive’ are simple to help you remember them.
I know that I will not become a perfect person and I am sure that I will fail many of these habits, but this book does give me a guide on what I should focus on and how to become more effective.

Positives:
Very useful information that is based on solid principles: no quick fixes, fads or gimmicks. Very detailed discussion that clearly explains our perceptions and how we can change them. The examples and scenarios are extremely helpful in explaining points.

Negatives:
Some people may feel this book is too ‘idealistic’ or may even think it is all ‘psycho-babble’. The detailed explanations and discussion may be too ‘thick’ for some people.

Recommended for: Everybody
The principles in this book deal with all aspects of life whether it is personal or business. Nobody is perfect and we can all improve ourselves if we choose to and this book can help. People wanting to improve relationships or find out how they can communicate more effectively will benefit from this book.

Genre: Self-help

Overall rating: 7 out of 10 stars

Australians can buy the book by clicking the picture below:

Where to from here:

I recommend the following book as it teaches sound principles in dealing with people:

How to win friends and influence people by Dale Carnegie

Book review: Principles of corporate finance by R. Brealey, S. Myers and F. Allen

Principles of corporate finance – R. Brealey, S. Myers and F. Allen

Synopsis:
This book discusses a wide range of topics relevant to corporations and financing. The book opens by explaining the concepts value and risk and other basic finance principles. From there the topics become progressively complex, from project analysis and net present value calculations, to debt policy and option valuation. Other topics include mergers, agency problems, credit risk, working capital management, etc. The book concludes with an important discussion on the limitations on finance and what we do and do not know.
This book uses a great number of examples and case studies to explain the concepts. Worked examples show step by step how outcomes are determined. Excel files are available on the internet that helps explain the examples. The examples are either real world companies or imaginary companies so the reader can learn how to analyse real life situations.

What I gained from reading this book:
This book really enhanced my understanding of finance within a corporate situation. This was a required textbook for a third year finance unit so I already had a good understanding of basic principles. What I learned was how to apply the basics of finance in complex situations and find optimal solutions.
This book enhanced my understanding of options and different methods to value them. Other benefits I gained included an increased understanding of tax shields to effectively reduce my tax liability and the ability to analyse the difference between leasing and buying to make the best possible decision.
I found this book was easier to understand than my lecturers and I still keep this book as reference for the future. The principles in this book won’t be obsolete in ten years (unlike other university books I have) so even if I forget how to apply a principle, I know I can easily re-learn it.

Positives:
The book starts off explaining simple finance principles before going into complex issues so those new to finance won’t struggle from the start. The examples and the excel files on the internet made the learning process so much easier. The principles in this book are useful in a wide range of situations, not just for corporations.

Negatives:
Some people may have difficulty with this book, especially if you don’t already have a good understanding of the basics of finance. Some topics are very complicated.

Recommended for: Business and finance students
If you are taking a course in business or finance, you will probably benefit from learning these advanced concepts. If on the other hand you are thinking of starting your own business, having a strong understanding of complex issues raised in this book will definitely put you at an advantage.

Genre: Finance

Overall rating: 7 out of 10 stars

Where to from here:
After reading this book you will probably want to learn specifics on other topics such as taxation or accounting. I haven’t reviewed any of those books so have a search for some on the topics your interested in.

Australians can buy the international edition by clicking the picture below:

Book review: Negotiating for dummies by Michael Donaldson

Negotiating for dummies – Michael C. Donaldson

Synopsis:
This ‘for dummies’ book explains what negotiating is and how to apply it in various situations. The first part deals with preparation and explains what should be done before a negotiation begins. The second part explains the actual process and looks at what questions to ask, how to properly listen and what to look for in body language from the other parties. The third part looks at how to handle situations when they don’t go smoothly. Part four looks at ‘complex’ situations such as international negotiations and negotiating over the phone or internet.
The book is written in a format like all the other ‘for dummies’ books. The author uses movies as examples to help explain a point or method. Clear advice is given for specific situations.

What I gained from reading this book:
I had already read a few books on negotiating before reading this one so I already had a good understanding on the topic. However, if this was the first book I had of read, I would have been very confused by the end. Normally I only review books that I believe give the readers value. This book was fairly poorly written (in my opinion of course) and it seems the author isn’t sure how to teach the topic in a book. If you read the reviews on Amazon, you can see that I’m not the only person who feels this way.

Unfortunately, this book is confusing in its layout and the information given is very general. One example was the chapters on asking questions and listening. If you picked up the book and read those chapters without looking at the title of the book, you wouldn’t have thought it was a book on negotiating. Some of the topics that are discussed are a far stretch from what negotiating is about. The author seems to have trouble staying on topic and the result is a collection of ideas that relate to negotiation, not a clear method or explanation. The references to movies are an example of how the author drifts off topic. Although the movies may provide insight to the topic, the references don’t explain anything on their own.

This book falls far behind the others I have read on the topic. The others (list at end of review) were very detailed in the actual method used and explained BATNA (a term developed by the Harvard Negotiating Institute) very well. This book only mentions BATNA in one single paragraph. Compare that one paragraph to other books that have been written solely explaining BATNA.

NOTE: Although I was truly disappointed with this book, others may benefit from it. If you are after a general look at negotiating and how to improve your ability to discuss issues with people, it may be right for you.

Positives:
As all the ‘for dummies’ book, this one is very basic to understand and anybody can pick it up and start reading from any chapter. The advice given for specific situations can help those who aren’t sure exactly what they could do.
The references to movies may help you get an idea of what the author is talking about.

Negatives:
The book looks at a great number of different aspects related to negotiating, but doesn’t go into depth into any of those aspects.
There is no clear explanation of a method to use or details to BATNA, which so many other books spend a significant portion of pages explaining and demonstrating.

Recommended for: Not recommended.
This book does not meet my quality requirements for me to recommend to anybody. Although some people may benefit from it, there are better alternatives (listed below).
Negotiation is an important topic that I believe everybody should learn so I recommend you read the reviews I have written for other negotiation books.

Genre: Business skills

Overall rating: 4 out of 10 stars



Australians can buy the book by clicking the picture below:

Where to from here:

Instead of reading this book, I recommend the following on negotiation:

Getting to YES by Roger Fisher and William Ury

Alternatively, to understand another way of influencing people, I recommend:

How to win friends and influence people by Dale Carnegie

Book review: The E-Myth Revisited by Michael Gerber

The E-Myth Revisited (Why most small businesses don’t work and what to do about it) – Michael Gerber

Synopsis:
This book looks at why 80 percent of small businesses fail within five years of starting. The mindset of the business owner is looked at and analysed to determine why the business fails. The mindset of the business owner and how they think of their business is a significant factor in the success of the business.

The author introduces Sarah, a small business owner struggling to keep the business running. The author walks through a conversation with Sarah explaining the reasons why her business isn’t working and what she needs to think about for it to work. The author uses storytelling and examples to give the reader a clear picture of a certain situation or problem. The steps in the ‘life’ of the business are considered in detail to give the reader an idea of stages a business must pass through to become successful. Lessons in franchising are considered and the way of thinking Ray Kroc (from McDonalds) used to build his massive empire.

What I gained from reading this book:
This book makes it very clear why many people fail at running their own business. The concept that people should work ‘on’ their business and not ‘in’ it is so important in my eyes now after his explanations. As the author states, this book is not a ‘how-to’, instead it is a ‘what to do and why it needs to be done’. The author strongly believes that ‘how-to’ books don’t work if you don’t know ‘what to do and why’ first.

This book has really got me thinking about issues I had never considered before. I want to one day open up a small business and this book was just what I needed. Through my university studies I have already studied plenty of ‘how-to’ but those studies never considered the ‘what to do’ and ‘why’. Now that I know what I need to do and why it needs to be done I can look again at the how-to books to properly prepare myself.

Although I haven’t started my business yet (it could be years from now), I now feel much more confident in building a successful business because I understand why many people fail and why. This is the number one gain I received from this book, the understanding that three years of business study never even considered. I wish I read this book three years ago.

Positives:
Extremely insightful to the realities of small businesses and their owners. Identifies the reasons why many businesses fail and what to do to avoid being one of them. The use of storytelling and examples are very good at painting a detailed picture of the concepts to learn.

Negatives:
This book is not a ‘how-to’ so people expecting this may be disappointed. While some people may like the storytelling the author uses, other people may find it distracting. Apart from that the book was very well done.

Recommended for: Anybody interested in small businesses.
I recommend this book for anybody wanting to start a small business of their own and those who have already started one. If you haven’t started yet, this book will give you a great starting point to understand what you need to learn and why you need to learn it. For those who have already started a business, this book will get you to look at the business in a new way that will no doubt improve your chances of success.

Genre: Small business

Overall rating: 9 out of 10 stars



Australians can buy the book by clicking the picture below:

Where to from here:
After reading this book I would read one of the ‘how-to’ books on specific topics the author mentions. I would recommend reading MBA in a day by Steven Stralser to get an overview of business skills. From there you can go into more detail on each topic.

Book review: Rich Dad's Retire Young Retire Rich by Robert Kiyosaki

Rich Dad’s Retire Young Retire Rich – Robert Kiyosaki

Synopsis:
Robert Kiyosaki is the author of the book Rich Dad Poor Dad (I have also reviewed his book Cashflow Quadrant). This is the fifth book he has released under the ‘rich dad’ brand. The basis of this book is explaining how he was able to start with nothing and retire nine years later financially free. The focus is on the different forms of leverage and how you can use them for your benefit. The main message is to expand your ‘context’ or your reality. The last section in the book discusses specific investments such as real estate, paper assets (shares, options) and businesses.
Like the other Rich Dad books, the author contrasts the things his ‘rich dad’ and his ‘poor dad’ have said to him in the past. The focus is on helping you understand that what you believe and say will ultimately determine what type of person you end up as (as in poor, middle class or rich). As the author would say ‘the words became flesh’.

What I gained from reading this book:
I gained so much from the Rich Dad Poor Dad book. Read through that review to see how important I feel it is. This is the third book of his that I have read. He has made some really good points in this book and other points I didn’t agree with. But I did gain from this book. The idea of expanding your context and opening your mind is a powerful one. While I was reading certain chapters I wasn’t too interested in what was being said but after I finished the book I began to notice the truth in the points he made. The examples he made of people not willing to open their mind to possibilities would fit some of my friends perfectly.
I already knew the points he made on shares and options (I studied them at university) so I didn’t learn anything new there but the explanations are well done. This book really does a good job at improving your ‘context’ as the author would say. In other words, it opens your mind to the possibilities of doing things that you would normally never consider.
Although I am not rich yet, I do feel that these books are helping me and improving my future prospects. This book doesn’t look at investment specifics because there are plenty of books on the topic. This book looks at helping you accept that it is possible to get rich (which many people including my friends don’t accept as a possibility).

Positives:
Introduces people to some basic concepts in shares, real estate and options. The conversational style of writing is easy to understand. The book can really help open your mind to possibilities that many people would never accept. The explanations on the different forms of leverage are very useful in real life.

Negatives:
Some people may not like the use of fairy tales to make points. Others may not like the repetition the author uses. Basically, if you did not like his other books, you won’t like this one. If you haven’t read his other books, I recommend Rich Dad Poor Dad over any others.

Recommended for: Those wanting to be rich or successful
I recommend this book for people who seriously want to be rich or successful one day. I say ‘seriously’ because I know many people who say they want to get rich but won’t do anything about it. If you don’t want to put effort in, this book won’t be useful to you. If on the other hand you really aim to put the effort in to try to get rich, this book (as well as his others) can really put things in perspective.

Genre: Investments and personal finance

Overall rating: 7 out of 10 stars

Australians can buy the book by clicking the picture below:



Where to from here:
If you are interested in reading other books by Robert Kiyosaki, I have reviewed other ones here:
Rich Dad Poor Dad
Cashflow Quadrant
Why we want you to be rich by Robert Kiyosaki and Donald Trump

On the other hand, you may want to consider reading books looking at ways millionaires become rich:
The millionaire next door by Thomas Stanley and William Danko
Ten roads to riches by Ken Fisher

Gaining an advantage in a recession

THE CURRENT SITUATION
The current (2009) global economic position isn't too flash. With many countries in or nearing recession, companies are more likely to downsize and people are more likely to lose their job. Increasing your skill base not only improves your chances of keeping your current job, but it also improves your competitiveness if you look for another job. Recruiters are known to be pickier in times of recession and maximising your skills and knowledge can help you stand out of the crowd.
If you currently have a job you like you should be happy because many people wish they could say the same thing. If you are concerned about the real possibility of losing that job, reading up on the following topics will put you in a better position to hold onto your job.
On the other hand, if you are unfortunate enough to have lost a job already, don't let it get you down. Read up on these topics to help you stand out of the crowd when looking for a new job.

WHAT TO LEARN
For those who are looking at improving their skills and knowledge to gain an edge in the business world, I recommend learning the following topics.

1. Negotiation
It doesn't matter what type of job you have or want, you will need to know how to negotiate. People have a common misconception about negotiating, thinking it is only for union leaders or board room meetings. In fact, it is an everyday skill that everybody uses without even realising it. By reading up on this skill, you will not only have more control of your current situation, but you will have more control over your future situation. This is number one on the list because of the positive impact it can have on your career. It’s not just used to ask for a raise, it can be used to get more favourable hours, flexibility, increase possibility for promotion, etc.

2. Communication
Look at almost any job advertisement and under the list of skills required will almost definitely be 'good communication skills'. It is so important and yet, many people don't even bother to learn about it. Even reading one book on the subject puts you above the majority. So find a book on the topic and read about it. Then go out there and apply the information you have read. Recruiters put a very high emphasis on communication skills.

3. Body language
Most people either don't have a clue what body language is or they have an extremely limited understanding of it. This is why it is so important to learn. If you learn about body language, you will have a clear advantage over most people. Body language is the non-verbal language everybody uses without realising it. You can accurately read other people's signals and gestures to determine their thoughts and feelings. This is great for most jobs when you work with other people. Reading other people's body language can help you a great deal.

4. Business basics such as accounting, economics, management, marketing
Even having a basic understanding of these areas can put you at an advantage. Most people are happy with their limited understanding and don't care about learning other areas. Those who learn even the basics of other business areas have an advantage. If you have ever heard somebody use jargon and you were left scratching your head over it, you should learn more about the area. Not only will it make your life easier by understanding more, but other people will recognise and value your wide understanding.

5. Personal finance
This topic is more for your own personal needs rather than career need. Having a better understanding of personal finance can help you improve your situation so a recession won't have as much of an impact on you. Unfortunately for many, the recession has already hit hard. In either case by learning more on personal finance you are improving your future prospects. If you know the basics you should continue your learning by reading up on more advanced areas. Doesn't matter what your current situation is, you can improve your situation through learning. Even if you have a financial planner you go to, you should still read up on it. You may even find out that the principles are so basic you can do it yourself without any help from a financial planner.

THE FUTURE SITUATION
By reading up on these topics you put yourself in a better position for the future. If you read up on the basics of economics, you will find out that recessions (like the current one) will end. When the recession ends you will be better prepared for the next expansion (opposite of recession) and be at an advantage when looking to improve your career. While I can't guarantee that learning about these topics will be enough to get you a new job or keep your existing one, I am sure that it will help you to do so. Just remember, the more you learn the luckier you get.

Have a look at List of Book Reviews to find books I have reviewed on the topics above. If you can think of any other topics that are useful to gaining an advantage in a recession and could be added to this list, feel free to let me know by leaving a comment.

Book review: Cashflow Quadrant: Rich Dad's Guide to Financial Freedom by Robert Kiyosaki

Cashflow Quadrant: Rich Dad’s Guide to Financial Freedom – Robert Kiyosaki

Synopsis:
This book is the sequel to the Rich Dad Poor Dad book. It expands on the concepts and principles explained in the first book. The focus in this book is on the different ways people earn money and more importantly, the psychological mindset of the type of people in each area. The author splits up all ways to earn money into four ‘quadrants’. The quadrants are: Employee, Self-employed (or small business), Big business, and Investor. The author then looks at each quadrant and explains why the people in certain quadrants have an advantage over others. Differences in people within the quadrants are explained. The book concludes with steps to become financially successful.

What I gained from reading this book:
I gained so much from the first Rich Dad book and this book was great to expand my understanding on the concepts that the author discusses. Reading about all the different types of people and the different quadrants was a great way to take a look at myself and my personal situation. By the end of the book I had a clearer understanding of where I currently am (financially and psychologically) and where I want to be in the future. Just like the first book, there were great tips and advice that were never discussed in my University years studying finance and investments that I feel are so important for everybody.

Positives:
Expands on the valuable concepts in the first Rich Dad book and introduces new concepts. Great explanations on the different types of people and ways to earn money. This book can be a great tool to assessing your situation.
The concepts are very simple to understand which means anybody can read it. You don’t have to have studied accounting or finance before to understand the points the author makes.

Negatives:
If you did not like the first Rich Dad book, you probably won’t like this one either. If you haven’t read the first book, you probably won’t understand what this book is discussing. The author uses repetition as a teaching tool and some people may not like learning this way.

Recommended for: Everybody
Everybody who has read the first Rich Dad book should read this book to expand the understanding of the concepts explained. I recommend this book for everybody because having a basic understanding of cash flow can improve your personal finance situation.

Genre: Self help and personal finance.

Overall rating: 7 out of 10 stars

Australians can buy the book by clicking the picture below:



Where to from here:
If you are interested in reading other books by Robert Kiyosaki, I have reviewed other ones here:
Rich Dad Poor Dad
Retire Young Retire Rich
Why we want you to be rich by Robert Kiyosaki and Donald Trump

On the other hand, you may want to consider reading books looking at ways millionaires become rich:
The millionaire next door by Thomas Stanley and William Danko
Ten roads to riches by Ken Fisher

Book review: MBA in a day by Steven Stralser

MBA in a day: What you would learn at top-tier business schools (if you only had the time!) –Steven Stralser

Synopsis:
This book can be thought of as a summary of the concepts and principles that are taught to students studying an MBA. The book is split into four sections that represent four areas of business. Each chapter deals with a specific topic such as accounting or marketing or ethics. Each chapter contains a summary and list of references used (which can be useful if more information is needed on the topic). The use of dot-points and real world examples makes the book very concise while dealing with a great range of topics.

What I gained from reading this book:
I have studied Bachelor of Commerce in Australia and I like to think of this book as a summary of the entire course I took. Although it obviously doesn’t go into the detail the course did, it did cover all aspects. I read this book after graduating and was constantly reminded of all the theories and principles I had forgotten. I compared my textbooks to the topics explained and this book does a fantastic job of glancing over all the essential principles and theories. Although I didn’t necessarily learn anything new from this book (three years of study taught me the topics in detail), my knowledge was given a much needed ‘refresh’.

Positives:
Actually does a great job at explaining all the fundamental theories and principles that are taught in business schools.
The book is very concise and accurate which is definitely needed for such broad topics. The layout makes it easy to understand what area of business is being discussed.

Negatives:
Those expecting this book to go into detail on each topic will be disappointed. Obviously a book under 500 pages won’t teach you everything a business school would. If you don’t start with unrealistic expectations, you should be very happy by the end. I was surprised of the range of topics that were sufficiently discussed. Considering I have books over 1,000 pages on each topic, this book does a fantastic job of outlining the important points. Think of this book as a summary of what you would learn instead of trying to teach you everything an MBA course would.

Recommended for: Anybody wanting to gain a business understanding
Anybody with this interest can read this book. I recommend it for those looking to learn about business but unsure of how to start. By reading this book you will be given an overview of all the topics. From there you can go and find books specifically on the topics you want to learn in more detail.

Genre: Business

Overall rating: 8 of 10 stars

Australians can buy the book by clicking the picture below

List of book reviews

Here is a list of all book reviews I have uploaded to date. I will always update this page.

Personal Finance/Wealth/Investments
Rich Dad Poor Dad – Robert Kiyosaki
Ten roads to riches – Ken Fisher
Why we want you to be rich – Donald Trump, Robert Kiyosaki
Five key lessons from top money managers – Scott Kays
Cashflow Quadrant – Robert Kiyosaki
The Millionaire Next Door - Thomas Stanley and William Danko
Retire Young Retire Rich - Robert Kiyosaki
The richest man in Babylon - George S. Clason
The four pillars of investing - William Bernstein
The ultimate depression survival guide - Martin Weiss
The little book that beats the market - Joel Greenblatt
I will teach you to be rich - Ramit Sethi
Billionaire in Training - Bradley Sugars

People skills/Success
How to win friends and influence people – Dale Carnegie
What every BODY is saying – Joe Navarro
Body language (how to read others’ thoughts by their gestures) – Allan Pearse
The 7 Habits of highly effective people - Stephen Covey

Negotiation
Getting to YES (Negotiating Agreement without giving in) 2nd ed– Roger Fisher and William Ury
Negotiating for dummies - Michael Donaldson

Guitar/Music
Flamenco Guitar Method Vol 1 – Gerhard Graf Martinez
The complete idiot’s guide to Music Theory – Michael Miller

Business/Career
MBA in a day – Steven Stralser
Job interviews for dummies – Joyce Lain Kennedy
The E-Myth Revisited - Michael Gerber
Good to Great - Jim Collins
Good Business Bad Business - Roger Green

Economics
Freakonomics – Steven D Levitt
Microeconomic theory: Concepts and connections - Michael Wetzstein
Finance
Principles of corporate finance - R. Brealey, S. Myers and F. Allen