Day#10: Read one personal finance book.

This is Day #10 of “25 Days to Healthier Finances”, a series of blog posts where Frugal Pinoy readers and myself work on 1 task a day to make our financial lives better. Please stay tuned for the next installment of this series, which will be up tomorrow.

Here’s today’s installment:

It’s a Sunday, so I picked a task that we can do from the comfort of our own homes. I also chose a task that can kill a few hours, since most people will be too busy during the weekday for a task like this one -

Today’s Task: Read one personal finance book.

If you already have a personal finance book at home but you haven’t read it yet, now’s your chance. You can also borrow books from friends or relatives, or buy from a second hand shop. Just make sure that whatever you buy, the information is up to date. Also, as much as possible, buy something local. The ideas in local books will be of more help, especially if they point to local banking and investing information.

Want some free books instead? Check out the following:

• Thriving on Less: Simplifying in a Tough Economy by Leo Babauta. It’s about adjusting your lifestyle to make it more sustainable and allow yourself to live well in a tough economy.
• Money Matters for All Ages, which I reviewed before, is a guidebook on financial planning for the rest of your life.
• Tips for Change from Money Management International. Just a collection of money-saving tips. Although written for a US audience, 98% of the tips are applicable everywhere (FP’s note: I wouldn’t drink tap water though, so know which tips to pick and use).
• Plan Z: How to Survive the 2009 Financial Crisis by Robert Pagliarini. An alternative take on how to deal with the financial crisis. (FP’s note: I don’t think it’s a good idea to avoid paying off credit card debt as early as you can if you have the means to do it, things are not as bad here as compared to the US. But if you’re financially desperate, it’s okay to just pay the minimum each month.)
• Building Wealth: A Beginner’s Guide to Securing Your Financial Future by the Federal Reserve Bank of Dallas. Meant for US readers but most of the ideas are basic enough to be applicable to the Philippines. Just like the title says, it’s for beginners who are just starting to be aware of their financial responsibility.

Remember: don’t stop with just one! Over the next few months, make it a point to read other financial planning and money management books. You’ll find that many writers contradict each other so it’s good to have multiple perspectives on a single issue. But for today, one book should be fine.

The Millionaire Next Door - A Review

I’ve just finished listening to the audio book version of “The Millionaire Next Door” by Thomas J. Stanley and William D. Danko. I’ve heard good things about it, so I thought I’d check it out for myself.

The premise of the book is simple: the authors conducted a survey of self-made millionaires in the US, to see what characteristics they share and how they got to be millionaires.

In the first part, the authors share their discovery of a surprising fact: millionaires often did not look the part. They did not dress like millionaires, they don’t come from wealthy families, and most of them don’t even have an MBA or high levels of tertiary education.

Here’s an excerpt from the book (emphasis mine):

“In time we discovered something odd: many people who live in expensive homes and drive luxury cars do not actually have much wealth…. Many people who have a great deal of wealth do not even live in upscale neighborhoods.”

Then the authors move on to discuss the common characteristics of millionaires and how they acquired their wealth. Not surprisingly, it involves discipline and planning.

Here’s a brief summary of the book’s main points:

Read more..