I got on the subway for another Monday morning commute. Instead of listening to music or staring off into space, I pulled out my Kindle. I’d been on a personal finance kick lately and had been reading The Millionaire Fastlane by MJ Demarco, of which I was about halfway done.
At the next stop a man a few years older than me sat down next to me and pulled out a book. It had a bold purple and black cover. I peaked over at the top corner of the book and saw a familiar title: It was Rich dad Poor Dad.
I had just finished this book the week before!
What a coincidence, right? Not exactly.
Though many of us red-pilled folks mock those who cling to their jobs, the truth is that many people want financial freedom. Commuting to a bland, soulless job is awful and few people actually enjoy it. People are looking for a way out of the rat race, which is why books like Rich Dad Poor Dad sell tons of copies.
But the truth is that books can only do so much.
‘Get Rich’ Books Won’t Make You Rich
Reading books is an essential habit that provides so much wisdom and helpful advice. But that knowledge is only useful if you actually apply it.
Do you really think everybody who reads a personal finance book takes action and implements what they read?
Especially when you consider that Rich Dad Poor Dad has sold 26 million copies worldwide! That’s a mega-bestseller right there. The book has clearly impacted a lot of people. But how many of those readers became wealthy from reading the book?
I suspect only a small fraction.
The ‘Get Rich’ scam is similar to the modern self-improvement scam. People love to have an escape from reality and want to imagine becoming rich. So they buy one of these books to get that short-term boost of happiness.
They tell themselves they’re finally going to get rid of debt and start up that business! Yet, a few weeks later they’re back to square one.
And then there’s the concept of saving to get rich. Or funding your 401K to finally retire at the ripe age of 65. Not only is this ‘Get Rich Slowly’ concept BS, but it’s not the way I want to live.
MJ Demarco really shreds this concept up. He got rich at a young age, and couldn’t imagine waiting until his 60’s to drive his Lamorghini (though nobody is using their pension to buy a Lambo anyway).
The ‘Get Rich’ Formula
Reading books like Rich Dad Poor Dad and The Millionaire Fastlane will definitely set you on a path to wealth. It’s actually hard not to if you follow their advice:
Build a Business + Acquire Assets + Invest Wisely = Wealth
Well, it’s easier said than done, of course. But these are all manageable steps:
- Build a Business: Why haven’t you started already? You don’t need to go out and buy a sandwich franchise. Instead, starting a website or freelancing gig is the first step to financial freedom.
- Acquire Assets: Whether it’s websites or real estate, add cash-flow generating assets to your portfolio. Doing so provides a plethora of financial benefits such as tax write-offs and passive income. (And your house is not an asset, it is a liability because it does not generate cash-flow).
- Invest Wisely: You don’t know better than Goldman Sachs. Don’t try and hustle the hustlers. Though different authors have different views on investing, they all recommend you refrain from taking unwise risks. Instead, invest in businesses, index funds, real estate and of course yourself.
Making intelligent financial decisions is oftentimes common sense. If you’re already making smart moves with your money, have avoided unnecessary debt, and have a business or a side-hustle, you may consider reading some of the more reputable books on personal finance.
If you’re looking for awesome financial advice, check out:
These guys offer better advice than pretty much all the gurus. And it’s free!
As for the books I’ve read lately on personal finance, check out