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: I will teach you to be rich by Ramit Sethi

I will teach you to be rich – Ramit Sethi

Synopsis:
As the title implies, this book is focused on teaching you to be rich. The book is focused on young people (in their 20s). A six week program is explained in detail on how to look at every aspect of your situation and improve it. From optimising your credit cards and bank accounts, to tracking your spending and simple investments. The book also looks at how you can negotiate to get a raise or even get a better deal on a house or car. The book uses plain English without any complicated formulas or number crunching.

What I gained from reading this book:
A more accurate title for this book would be ‘I will teach you to be in control with your money’ and if you follow the steps, you will be in control. This book can make you rich if you do follow the instructions. You won’t get rich tomorrow, or even in a years’ time, but eventually you will. Studies show that people who have a strong control over their income and spending become richer as time goes on. The great thing about this book is it is easy to implement.
This book was straight forward and very easy to read. My biggest gain from reading this book was seeing a fresh perspective on personal finance that I actually enjoyed. I had already implemented the steps that the author suggests, so although I didn’t learn anything new (I’ve read so many books on this subject), I did get much needed reinforcement that I am doing the right thing and one day it will pay off.

Positives:
This book is extremely easy to read and is enjoyable. Young people will relate to the author and his writing style. The advice given is practical and it works.

Negatives:
I thought that maybe it could go into more detail, but then readers would get bored and not implement the plan. So the fact that the book is short and basic is a good thing. The most important thing here is that the reader takes action, and I think the book will do a great job encouraging it.

Recommended for: All young people
Every young person (from teenage years onwards) should read this book. Even if you hate the word finance and don’t want to think about it, you should check it out. In forty years time you will be so glad you did.

Genre: Personal finance

Overall rating: 8 out of 10 stars

Australians can buy the book by clicking the picture below:

Where to from here:
If you want to go into more detail on the topics covered, I have reviewed many other books on personal finance that go into great depth. Click on ‘List of book reviews’ at the top of the page to see the ones I have reviewed.

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

Book review: The ultimate depression survival guide by Martin Weiss

The Ultimate Depression Survival Guide: Protect your savings, boost your income and grow wealthy even in the worst of times – Martin Weiss

Synopsis:
This book takes on two tasks: to analyse the current economic situation and see why a depression is likely to happen, and to give advice on how to protect your financial position if a depression does occur. The book starts by explaining why a depression is inevitable and explains why the government won’t be able to stop it from happening. In each chapter, step by step advice is given under topics such as “how to protect your job in bad times”, “How to go for profits in a down market”.

Many of the problems in the current financial system are identified and the author strongly makes his point that things will only get worse. Many comparisons are given between the First Great Depression from 1929 and the current situation to help explain why a Second Great Depression is inevitable. The author uses notes from his father to explain what it was like in the first depression.

What I gained from reading this book:
I read this book after seeing it on Amazon and the high average rating it received from the readers. To be completely honest, I was grossly disappointed by this book from cover to cover. My instincts were telling me the whole time that the author’s points were biased and not explained objectively. The author strongly emphasises that a severe depression worse than the ‘First Great Depression’ is inevitable. While he may have good reasons to say this, everybody knows that nothing in this world is 100% certain. To say that something is inevitable raises a red flag in my mind.

Another problem I had with this book was the advice given. Basically the author says to completely remove your money from real estate, stocks and even bank deposits and hold either cash or Treasury Bills. I was shocked at this advice. Then I remembered the title of the book “depression survival guide”. If a depression does occur, the people who follow this advice will be very glad they did. What the author fails to mention is that if a depression does not occur or if the global economy starts to recover (whatever the small chance), the people who followed this advice will deeply regret it.

I like to think of the advice as betting on a horse race. Imagine betting all your money on the horse named ‘Depression’. If ‘Depression’ wins the race, you win. If another horse wins, say ‘Recovery’ or even the least likely, ‘Expansion’, you lose big time. This book is betting that the economy will tank. Remember the saying not to have all your ‘eggs in one basket’? Well this book completely ignores that advice.

I also found myself frustrated with many parts in the book where the author would exaggerate problems by using bold or italic writing and using over the top adjectives. Phrases such as ‘financial war zone’, ‘crumbling economy’, or ‘jump from the frying pan into the fire’ really demonstrate the tone of the entire book. This style of writing felt very ‘snake oil salesperson’ to me and I am left feeling very sceptical. Everything seems to be either one extreme or another. For example, in the chapter entitled ‘How to escape the housing nightmare’, the headings use words such as: mania, corruption, fraud, cover-ups, deceptions, collapse! to tell you why you should sell. An objective discussion wouldn’t use such fear provoking words. The entire book is filled with over-the-top hyperbole that I can see will do nothing but instil fear in many people. Personally, this type of writing destroyed any confidence I had in the writer and his points.

When I finished the book, the first thing I thought to myself was that in ten years, either the author will be celebrated as a visionary, or he will be forgotten like so many other people yelling that ‘the sky is falling’. At the moment, many people are convinced that the author is right on the money.
So what did I gain from this book? I gained a basic understanding on how things have become the way they are now and an idea of what I could do if a depression does occur.

Positives:
Delivers what it promises: a clear guide to ‘survive in a depression’. Very insightful explanations on the current bailouts and how the economy has come to this situation. Provides good advice for those who are worried that they will not be able to survive a depression.

Negatives:
Assumes that a depression will happen and bases the advice solely on that prediction. Uses so much hyperbole it almost sounds like listening to a salesperson make a pitch. Does not explain the risks in the advice given and takes a very biased position throughout the book.

Recommended for: People who are worried about the possibility of a depression.
If you don’t think you would be able to financially survive a depression, this book gives you advice what to do.
If you are wondering why the situation is so bad and why it could get worse, the book provides in-depth explanations. Although I really disliked this book, I know that everybody needs to consider the possibility (not inevitability) of a depression.
Just remember, although I didn’t enjoy the book, many other people did, so feel free to read the reviews by people on Amazon to gain a different perspective.

Genre: Personal finance

Overall rating: 5 out of 10 stars



Australians can buy the book by clicking the picture below:


Where to from here:
I recommend the following book that gives fantastic advice on investing:
The four pillars of investing by William Bernstein

If you have read this book, feel free to leave a comment on your thoughts.

Book review: The richest man in Babylon by George Clason

The richest man in Babylon – George S. Clason

Synopsis:
This book is a collection of Babylonian parables that the author wrote in the 1920s. These parables were made into pamphlets that banks handed out to customers. The stories are used to explain the basic principles of finance such as compound interest, investments, saving and controlling expenditure.
The parables are based on ancient Babylon, a wealthy and educated city from over 5,000 years ago. The stories are written in the old ‘King James’ language (eg: thy, thou, morrow). Tales of how one person became a slave and managed to buy his freedom through hard work instead of shirking, how one person who ran away from his massive debts managed to repay them over time by planning, etc.

What I gained from reading this book:
This book was very interesting to read because I haven’t read anything else like it. The old language used was very unusual but served well in painting a picture of an ancient time in Babylon. The stories are well written and quite clearly show what it could have been like living back then. The principles that the parables are based on are very fundamental principles of personal finance, so I already knew them. It was refreshing to read them used in a story.

Although the principles are very basic and can be learned in any personal finance book, so many people don’t even know them or don’t bother to apply them. I have many friends who don’t even know about these principles or they come up with excuses why they don’t apply them. Reading these tales rejects any excuses by effectively saying “people managed to apply these principles 5,000 years ago so you have no excuse not to”.

I did have trouble with the old language used and some parts I got lost and couldn’t understand what was being said. From what I understand, another version has been published using current language that people will be able to understand. Even know I had difficulty with the old language, I prefer it. The old language is effective in the storytelling and I think the other version would not be as enjoyable.

Positives:
Explains sound principles that have stood the test of time and that everybody should use. Interesting storytelling of an ancient time and the old language adds to the authenticity.

Negatives:
Some people may have trouble understanding the old language. The book is quite short, but in a way that’s good because it gets right to the point. People who already understand the basics of personal finance won’t learn anything new.

Recommended for: Everybody
I recommend this book for people who want to get a basic idea on how to manage their money but don’t like the idea of reading a finance book. The storytelling is an effective way to understand the principles without being bored unlike so many educational books.
Genre: Personal finance/Wealth

Overall rating: 8 out of 10 stars

Australians can buy the book by clicking the picture below:

Where to from here:
After reading this book you will probably want to learn more about personal finance and how to apply the principles. There are many books that explain how to effectively manage your money.

I recommend the following to gain more insight into building your wealth or improving your financial situation:
The millionaire next door by Thomas Stanley and William Danko
Rich Dad Poor Dad by Robert Kiyosaki