How to Read and Profit From Wealth-Building Books
- WEALTHY: Are you wasting time and money on the wrong books? (Michael Masterson)
- HEALTHY: The difference between natural and synthetic vitamins (Jon Herring)
- WISE: Hugh Mackay on reading
ALSO IN THIS ISSUE:
- When to interrupt a conversation (Suzanne Richardson)
- How the head of Travelocity got her start
- Add "plonk" to your vocabulary
You Can Import Goods From Overseas For Pennies On the Dollar!
It may have been hard in the past for small entrepreneurs to import cheap products from countries like China, but things have drastically changed.
For example, In 1986, total trade between the United States and China was $7.9 billion. By 2005, this total has reached over $170 billion, making China the United States’ third largest trading partner.
You can’t believe how easy this is. With the right information, you just find products that cost a couple of dollars each and sell them for 1000%+ mark-ups by the thousands with your own Internet sites.
Please click here to read this urgent report.
- Patrick Coffey
"Reading is a huge effort for many people, a bore for others, and, believe it or not, many people prefer watching TV."
Hugh Mackay
How to Read and Profit From Wealth-Building Books
By Michael Masterson
As you may know, the two books I put out this year - Seven Years to Seven Figures: The Fast-Track Plan to Becoming a Millionaire and Automatic Wealth for Grads… and Anyone Else Just Starting Out - made Amazon’s 10-best list of finance and investing books for 2006. That made me feel good. Really good. And the news came at a good time, because I have been thinking about how to write better books that sell well and deliver on their promises.
In my experience as a reader and writer, I’ve come up with some ideas about how to evaluate the different types of wealth-building books and how to go about reading them.
There are basically five types:
- Investment Books. Usually written by stock market gurus, these books assume that the reader wants to get wealthy by investing in stocks. They usually present an innovative or time-honored strategy for increasing performance. Example: Dan Denning’s The Bull Hunter.
- Academic Studies. These books, usually written by researchers (like Thomas Stanley’s The Millionaire Next Door), describe wealthy people, what they do, and how they became wealthy. My book, Seven Years to Seven Figures, might be said to fall into this category.
- Debt-to-Wealth Books. Typically written by financial planners, these books encourage and guide people in financial trouble to get control of their personal finances. Example: Suze Orman’s books.
- Scrimp-and-Save Books. Written by professional authors, these books show ordinary people how they can take advantage of the "miracle of compound interest" by investing wisely over a long period of time. Example: David Bach’s The Automatic Millionaire and my book, Automatic Wealth for Grads.
- I-Got-Rich-You-Can-Too Books. Written by successful businesspeople, these books tend to focus on the usual ways people get rich: entrepreneurship and real estate. Example: Donald Trump’s books and my book, Automatic Wealth: The Six Steps to Financial Independence .
To save you time and money, here are some recommendations about how and when to read these books.
- Investment Books. Read the best of these until you find an investment strategy that you can believe in. Then stick with that strategy. If you want, you can stop reading investment books after that. Studies show that consistency in investing is a more important indicator of success than the strategy itself.
- Academic Studies. Read these books for motivation - to remind you that if you want to become wealthy you must do what wealthy people do: work hard and save.
- Debt-to-Wealth Books. If you are in debt and out of control, read these books. At one level, they all have the same advice - but each author has his/her own particular way of dispensing it. Keep reading these until you get out of debt and have developed basic wealth-building habits.
- Scrimp-and-Save Books. Read these books for personal finance strategies if you have plenty of time (i.e., 30 years or more) to achieve your financial goals. Because they are based on compound interest - and compound interest doesn’t give you any traction for 30-plus years - they won’t satisfy you if you want to become wealthy relatively quickly.
- I-Got-Rich-You-Can-Too Books. Read these books if you want to get rich. Don’t be disappointed to "discover" the same old stuff: that the only two ways to get rich fast are through entrepreneurship and real estate. Why? Because that’s the way it is. (Actually, there’s another way, which critics of my books keep missing: intra-preneurship - getting rich as an employee.) Read these books for motivation and for specific real estate and business-building tips. Keep reading them till you succeed.
Aside from limiting your reading to books that are likely to help you, another thing you can do to become a better financial/wealth-building reader is establish realistic expectations of what a book can do for you. The best way to develop realistic expectations is to be aware of the most common complaints about financial/wealth-building books and understand when they are legitimate gripes and when they are simply excuses for the complainer’s inaction.
In my experience, the four most common complaints are (1) that a book is irrelevant (it wasn’t written for the particular reader), (2) that it offers advice the reader has heard before, (3) that the advice is impractical (or it doesn’t make sense for a particular reader), and (4) that the author’s motives are suspect (i.e., that he is trying - gasp! - to make money from writing his book, rather than writing it purely from the goodness of his heart).
My books have been subject to all of these complaints. If you want to know how I answer my critics, check out my blog.
Reading about wealth building is a very important part of the wealth-building process. Almost every successful businessperson and investor that I know reads avidly. Many wealthy individuals, including Donald Trump and Warren Buffett, are prolific readers.
What I’m hoping you’ll do - in addition to the other resolutions you’ve already made for 2007 - is make a commitment not only to read more but to read only the business and wealth-building books that will help you the most. And when you do that, keep these two suggestions in mind:
- If you want to get something out of your reading, you have to put something into it. If you read with the expectation of finding something valuable - an idea, a technique, a tip, or an inspiring story - you will.
- Read strategically. A scrimp-and-save book will provide different ideas and recommendations than a debt-to-wealth book. Know what to expect from any book you pick up, and don’t waste your time or energy trying to dig out something you’re unlikely to find.
If you follow this advice, you’ll waste less time reading books that aren’t going to help you achieve your financial goals, and you’ll get more out of the books you do read. And keep this in mind: If you get one good idea out of a book - even a bad book - it can repay you a thousand times over for the time you invested in it.
[Ed. Note: If you haven’t already read them, get your copies of the two Michael Masterson books that were included on Amazon’s list of the Top 10 Finance and Investing Books of 2006: Seven Years to Seven Figures and Automatic Wealth for Grads.]
Jump On Now and Make 300%…
Before Wall Street Discovers the Stealth Market in Uranium
Thirty years ago, the biggest energy giants walked away from millions of acres of land with proven uranium reserves… land that wasn’t worth exploiting when prices hit rock bottom. But one company grabbed the best of that land for as little as $1 an acre.
Now, with the price of uranium skyrocketing, the value of those reserves has increased more than 1,300%… yet you can still purchase this company’s stock for pennies on the dollar.
But you’ve got to jump on this now before Wall Street discovers the stealth bull market in uranium. Once they do, this stock is going to POP. Get the full story here.
Reader Feedback: "Great book!"
"I’ve just recently subscribed to your Early to Rise newsletter after purchasing your new book, Seven Years to Seven Figures. Great book! I’m about 3/4 of the way through it and have already purchased another copy for my sister and have recommended it to several others. Thank you very much."
- Emily Grider
Colorado Springs, CO
When Is a Vitamin Not a Vitamin?
By Jon Herring
A chemist might contend that a synthetic vitamin is the same as a natural one. After all, the chemical structure is the same. Does it really matter where it comes from? A vitamin is a vitamin, right?
Not exactly.
In nature, vitamins occur as part of a complex system of other vitamins, enzymes, and nutrients. These co-factors create a synergy that increases the effectiveness of each component of the system. Scientists cannot fully explain how this works … but we know it does.
For example, the FDA allows ascorbic acid to be called vitamin C, even though ascorbic acid is merely the antioxidant protector of the vitamin C complex. (It’s like getting the shell without the egg.) Minus the necessary co-factors, ascorbic acid doesn’t have the same effect as natural vitamin C on the common cold and other conditions where vitamin C has proven helpful. Same with vitamin E. Natural vitamin E is more biologically active than the synthetic version - therefore, it is absorbed better and retained longer in the body.
As much as possible, you should meet your nutritional needs through a healthy diet. And when you choose a supplement, choose those that are made with real herbs, berries, fruits, vegetables, and mushrooms. In other words, put food into your body, not chemicals.
ETR Insider Report: Do We Wait? Leave? Or Jump Right In?
By Suzanne Richardson
It was one of those uncomfortable moments … and neither Charlie nor I knew quite how to handle it.
We needed to talk to Dr Sears about an upcoming ETR article, but as we approached him in the crowded hallway at last November’s Info-Marketing Bootcamp, he was already in the middle of a conversation. We stood nearby for a few seconds, awkwardly trying to catch his eye, before we retreated.
"I’m never sure what to do in a situation like this," Charlie whispered to me.
"I know. I hate when that happens too," I said.
This sort of thing happens to all of us - which is why I knew Charlie had a good idea when he suggested I do a little research and write about it in ETR.
You know how it goes: You’re at a business event and spot an important figure (the CEO of a company, for instance, or a valued guest) across the room. You want to introduce yourself or say hello, but the person is engrossed in a one-on-one conversation with someone else.
What’s the most polite way to make your presence known? Here’s the best advice I found:
According to Peggy Post, author of Emily Post’s Etiquette, 17th Edition, you should just walk away. If someone is engaged in a one-on-one discussion, you shouldn’t interrupt unless it’s an absolute emergency. Instead, look for the person you want to meet later on. If you don’t run into the person at that event, you can send a thoughtful note or make a quick phone call expressing your regret at not being able to say hello.
Peggy Post explains that it’s fine to enter into conversations involving more than two people - as long as the conversation doesn’t appear to be too in-depth. (Of course, this applies to networking events and conference receptions - not business meetings!) The best time to "interrupt" is when another person leaves the group. You can then ease yourself into the vacant spot and join the discussion.
Worth Quoting: Michelle Peluso on Making Decisions
"After finishing my master’s degree, I got two job offers from consulting firms - and took the one with half the pay. It was a matter of trusting my instincts. Shortly thereafter, I launched and became CEO of Site59, a travel website the firm funded. When the company was acquired by Travelocity, I had a choice: Stay in New York City with my friends and family, or take a position in Dallas where I didn’t know a single person. Travelocity’s hotel division there was a big challenge for the company, so nobody wanted the job. Leadership is about taking the big opportunity even if it’s scary. I packed up everything and moved to Texas. In the end, we moved ahead of the competition, and I became CEO of Travelocity at 32."
(Source: Glamour magazine)
Turn A Single $100 Investment Into A $2,000-A-Week Profit Machine
In the next seven days, 4,589 people will leave their jobs, never go back… and have all the money they will ever need.
I would tell you that these people are “very lucky,” but the fact of the matter is that there is no luck involved.
It’s happening everywhere. Ordinary people - including people who never finished school - starting their own businesses…and making in the neighborhood of $40,000…$60,000…even $100,000 or more a year.
Even though all these people are “ordinary” in some ways, one thing is certainly “out of the ordinary” about them:
Many used the same secret to start a business on less than $100. You can do it, too. Here’s how…
- Patrick Coffey
Word to the Wise: Plonk
"Plonk" (a shortened version of the earlier "plink-plonk") is British slang for cheap or inferior wine. The word is possibly derived from the French "vin blanc" (white wine).
Example (as used by Brendan Koerner in The New York Times): "Winemakers say that today’s boxed wines are markedly better than the thin, acidic plonk of yore."
[Ed. Note: Increase your income potential … become a more persuasive writer and speaker … build your self-confidence and intellect … become more attractive to others … just by spending 10 VERY enjoyable minutes a day with ETR’s new Words to the Wise CD Library.]
Michael Masterson
Copyright ETR, LLC, 2007