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: 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.

What to spend your economic stimulus handout on

STIMULUS HANDOUTS
In Australia, the government is giving a range of taxpayers a small sum of money to help stimulate the economy. As far as I know, many other countries may do the same thing. So if you have received (or will receive) some money, you are probably wondering what to spend it on. There are smart things you can spend it on and there are dumb things to spend it on. Being a book review blog I’m sure you can guess what I suggest you spend your money on…

That’s right, educational books. Now don’t go running away now, let me explain why!

I majored in Finance at university so I am always focusing on the best ways to improve my personal financial situation. As a finance graduate, I strongly recommend you spend a little bit of your handout money on personal finance books. Even one book will help you out greatly. I suggest this because if you start improving your financial education now, by the time the next recession begins you will not be in a delicate situation and suffer like countless people are now. So I whole heartedly recommend spending (some of) this ‘stimulus’ money to improve your personal financial situation now and for the future. A new HDTV may be extremely tempting, but in ten years it will be obsolete junk. The knowledge you can gain from reading up on personal finance will improve your entire future.

HOW CAN A PERSONAL FINANCE BOOK HELP YOU?
If you find yourself in a situation where bills keep piling up and you find it hard to get ahead financially despite having a decent paying job, it may be due to a lack of financial education. Don’t be put off by hearing that, the majority of the population don’t even understand the basics of money. That’s why so many people see financial planners – so somebody else can ‘fix’ their problems. The truth is that it is a lot easier and cheaper to learn how to fix your own financial problems on your own. By understanding why the way you spend your money is not helping you, you can learn and stop doing it in the future. Compare that to paying a financial planner to tell you the same things a book can tell you. The bottom line: just reading one personal finance book can teach you to improve your situation now and in the future.

WHAT TO SPEND THE REST OF THE MONEY ON?
If you buy a couple personal finance books and read through them, you should have a good idea what to spend the rest of your handout money on. If you read the right books, you should hopefully realise that buying a new TV or some other gadget may be fun in the short term, but won’t put you in a better position in the future. That TV will depreciate so fast it will be worthless before you know it. So what should you spend the money on? That’s why I suggest buying personal finance books, to be able to answer this question on your own! I could go into a very lengthy article on investments, but learning from a reliable investment book is better than any article I could write. So go buy a couple personal finance books and investment books to learn how you should properly spend your money. If you do so, I strongly believe that in ten years time you will be glad you did.

WHICH BOOK SHOULD I GET?
I will be reviewing personal finance books as I read them so check back here often to see what books can help you out. But if you want to find a book on your own type in ‘personal finance’ in the Amazon search box to the right. Many of the personal finance books will teach the same thing so just make sure the book you choose has been given a decent rating. To see what investment/wealth books I have already reviewed, click on ‘list of book reviews’ at the top of the page.

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.