Many people spend more time planning their vacation than their financial future. This is why too many end up nowhere. Self control, education, saving, investing, and trading are paths to building net worth. We earn money from creating value for customers, a company, our even ourselves, through education and experience. Our net worth is the difference between the products we consume and the value we create for businesses.
Financial Peace: Dave Ramsey taught me to break free from the burdens of consumer debt and living beyond my means. 15 year mortgages can save you six figures in interest, new cars cost you thousands of dollars as you drive them off the lot, and credit cards can be a prison without self control. Staying out of debt is a path to freedom, regardless of your economic status.
Rich Dad, Poor Dad: Robert Kiyosaki taught me that the employee quadrant was not the only way. There are also the self-employed, business owner, and investor quadrants that people can operate in. Cash flow from assets are a better way to create an income than selling yourself to an employer.
Your Money or Your Life: This book explains that there is no “Job Charming”. The best plan is to free ourselves from the need of a job by having assets that pay our bills, without having to sell our time to someone that will profit from it more than we will.
The Millionaire Next Door: This book shatters the perception that people with nice houses and new cars are rich. The vast majority of the “Jones'” that so many try to keep up with are high income earners than live paycheck to paycheck, and spend every penny they make on their lifestyle. Many are up to their eyeballs in debt. The true millionaires are many times, the methodical, middle class that dedicate themselves to building capital and success. They are successful due to their self control and work ethic.
Trend Following: Michael Covel taught me the power of trends in capital flow, and to follow the path of least resistance with my trading and investing capital. Reacting to what is happening instead of predicting, or having opinions about what will happen, is the easiest path to building capital in the financial markets.