Money, as well as power, cannot be considered the root of all evil. We can do good deeds and improve lives, if we have money, or we can use money and power to manipulate and destroy lives.
We don’t have to be traders or financial advisors in order to invest, but we can inform ourselves regarding the basics of investing, and then carefully plan our strategies. We all know that the bigger the risk, the greater the potential for a higher return on our investments. If we like to play on the conservative side, we also know we can invest in assets carrying a lower risk of failure, but which will require a longer investment timespan.
We can make money by trading time for dollars, but we can also invest in business opportunities which will make our money work for us.
1) Most common investment strategy is buying assets, which we hope will increase in value, so we can sell them later on and make a profit on that sell. Real estate purchases are at the core of this method.
2) The second strategy is that of having your money earn more money for you by:
a) lending your money and later on getting that same amount plus interest
b) becoming a shareholder in a company or corporation, owning stocks and receiving dividends out of the profits that company makes
I’m far from being an expert in the field, but very interested in learning about it, and so I thought I should put together this article with information I found helpful up to this point. Therefore, below you will find some of the best books on the subject of investing.
These books received great recognition for laying out the foundation for successful investment strategies, and they will give you the necessary understanding when starting to play with this topic. As with everything else, if you want success fast, don’t waste your time trying to reinvent the wheel. Instead learn from the masters, adapt their methods to your particular needs, then, as you gain understanding and experience, come up with new methods to revolutionize and take even further the techniques already present in the world. Base your innovations on a foundation laid by others who have already achieved the success you’re seeking.
Think and Grow Rich by Napoleon Hill
Sold in over 30 million copies, this book is based on research and observation of people possessing a wealthy psychological mindset. This mindset propels them towards networking with like minded individuals, and creating opportunities for investments with high returns. It is based on gaining momentum through synergistic thought patterns and behaviors, and contains 13 fundamental principles:
4) Specialized knowledge
6) Organized planning
9) Power of the master mind
10) Mystery of sex transmutation
11) Subconscious mind
13) Sixth sense
The 9 Steps to Financial Freedom by Suze Orman
Sure Orman is a certified financial planner who delves deep into the psychology accompanying and creating the financial circumstances and patterns we build our lives around. She shows us how intrinsically related are our early life experiences and circumstances to the habits and beliefs we develop around money later on in life. If we have a poor mindset, we not only recreate lack of finances in our lives, but we also reject opportunities when they come around because we simply cannot connect with them. There is a switch in the brain needing to happen, a shift of mentality from lack to the possibility for abundance, before we can become aware of money making opportunities. Ms. Orman goes on to explain investment basics, what exactly we can invest in, how to adjust our attitude when investing, and how to rely on our gut instinct more than relying on trends or external advice. The book is full of personal, emotional, mental and spiritual lessons regarding wealth acquisition, as well as specific information regarding real estate, tax codes, inheritance, college funds or preparing for retirement.
Money, Master the game-7 Simple steps to financial freedom by Tony Robbins
After interviewing the financial master investors of our present world, Tony distilled their techniques and mindsets, and came up with a simple recipe meant to bring financial freedom to anyone interested in the topic. This book explains the exact methods you have to follow and shows you how in 7 action steps you can diversify your investments and assure your financial freedom. You do not have to be a trader in order to understand this book, as it applies to people with no experience when it comes to investing, as well as people who have been playing with the topic for a long time. He’s basically taking years of experience, the trial and error methods on which these master investors have built their fortunes on, and gives you the final product, the successful recipe, so you can get results right away. He is not only giving you the financial recipe of investing, but being America’s number one coach and life strategist, he adds the necessary psychological priming, therefore programming you with his science of achievement tips and personal development strategies.
Rich Dad, Poor Dad by Robert Kiyosaki
This book highlights a poorly designed system, a system that keeps us trapped in lack because it is meant to grossly benefit and enrich 2% of the population, while exploiting the rest of 98%. It is a small elite controlling the world, and exactly like in the movie Matrix, we are exploited and subliminally programmed with messages of fear, in order to ensure our conformity and cooperation in keeping the factory going. What would happen if tomorrow everybody would wake up and be given a pill that would take fear away, like in that movie Limitless? Yeah, exactly! Everybody would ask for much more and they would also have the courage to go after what they want. What keeps us stuck is fear. Fear of loss, of the unknown, of not being able to be, do or have more.
Kiyosaki draws attention to the detrimental habits poor people have, such as struggling to sell their time in order to make money, habits and beliefs leading to life circumstances where they have enough money to barely cover their bills. This is where majority of people live, compared to the 2% which focus on becoming educated with financial literature and seizing investment opportunities giving them the freedom to keep increasing their revenue. You do not have to envy or hate this 2%, you just have to learn from them, and model what works, so you can also start gaining momentum in that direction. Opportunities are always there, and if you start educating yourself and taking action accordingly, you will move in the right direction.
The Essays of Warren Buffet: Lesson for Corporate America by Warren Buffet
In his book, the man considered one of the most successful investors of our times shares his letters addressed to the shareholders of Berkshire Hathaway, which were written over the past few decades. In these letters he discusses the underlying principles governing successful interaction between management and shareholders, and advises against following “ hot investment trends”. Lawrence Cunningham, the one arranging and organizing the book, creates 7 sections for these essays:
I Corporate Governance
II Corporate Finance and Investing
III Alternatives to Common Stock
IV Common Stock
V Mergers and Acquisitions
VI Accounting and Valuation
VII Accounting Policy and Tax Matters
Investing 101 by Kathy Kristof
As the book title points out, this is a beginners excellent guide to investing. It explains in simple terms the financial markets and instruments for investment, making easy to understand complicated terms, as well as giving a recipe for diversifying your portfolio in order to increase your revenue. She explains in simple terms concepts such as stocks, bonds, mutual funds and tax strategies, real estate, Roth IRA’s, college planning funds and many more investment instruments, showing you how to play wisely with all of them, and create wealth and freedom in your life.
For a lot of people the language around investments is what scares them off. Most people don’t understand the underlying principles behind investments, and because of that do not even inquire into the field. This book will represent learning the letters of the alphabet, which will then allow you to become a master reader.