Book Review – Everyday Millionaire

So for something a little different, I decided to check out a book on finance, because ultimately I do love my job, but I enjoy making money :). So the question obviously becomes how to you generate enough well to some day gain the financial freedom to enjoy it.

My wife and I a while back, took the Financial Peace University course, and found it to be really insightful, and since then by applying the teachings so that course we have been able to leverage the money we make to achieve more of our goals, and honestly its been a very liberating experience overall. Our entire financial outlook completely changed in a single year’s time.

Honestly, if the past few years time have taught me anything, its the change can happen every quickly, and with almost no time (or warning) at all. In the past 6 years, my entire life changed so much that if you honestly tried to tell my past self this was all going to happen, I would have absolutely laughed at you. I went from a married man, living in a small town home, and working as a developer and architect to my current position, father of 2, and currently in a new home.

So I decided to check out Chris Hogan’s book, Everyday Millionaire, and see sort of what I could gleam from his research and insights. For those who don’t recognize the name, Chris Hogan is a financial expert that is part of Dave Ramsay’s “Ramsay Solutions” organization, and has done several books on how to ensure you set yourself up for a successful retirement.

I have to say I enjoyed this book, as part of this book Chris Hogan interviewed and did a study of over 10,000 people who all have a net worth over $1 million dollars. And to be honest his findings pretty much lined up with a lot of the things that are talked about in Dave Ramsay’s books and course.

Now admittedly, that’s not surprising, because he talks about how they found these people was to put out an open call and interview the people who came back, and the people who would be listening to him are people who are already familiar with his work. So his results may be a little skewed, but that doesn’t make his findings any less relevant.

The general message of the book is that it is possible to attain millionaire status without doing so through any one of the many myths out there. The idea that the people who are rich has some “secret sauce” or some “unnatural advantage” is not at all true.

The simple message of this book is that if you work hard, and invest smart and safely you can achieve the financial independence you are looking for, and chasing that “1 big break” is what can ultimately lead to ruin.

Below is a video describing how this is possible.

Now there is one thing I fundamentally disagree with, and its not what he’s saying, but more how he says it. The one statement he repeats often is “If you work hard then …” and makes a reference to how attainable it is.

I don’t disagree with the sentiment, but I do disagree with the phrasing. The past few years have taught me a very valuable lesson, and that lesson is that of making sure you focus on “Impact OVER activity”. I don’t believe that working hard is enough to get anywhere in life, but rather working smarter and harder is the key.

Let me put this to an example…Take the following two scenarios, and I’m borrowing these from Greg McKeown. I’m going to keep the numbers small for my point.

If you have a job as a kid with a paper route, and you work every day of the week, and ultimately make $10 a week, you can make good money. That’s $40 / month, and that can do a lot for a kid who is say 12 years old.

Now, if you could instead take a job washing cars on the weekend, and you can charge $5 per car and do 5 cars in a saturday, and 5 cars in a sunday. That means you can make $50 a week, which is $200 / month.

Now I would argue, you can work hard at the paper route, but at the end of the day the impact it has on your goals is significantly lower. It would make more sense to take the job washing cars, and make more money, and then look for other things you can do during the week. It doesn’t matter how hard you work that doesn’t change the fact that the impact is different. If I work 10x as hard at the paper route, the end result is the same.

But if I increase my efforts on washing cars and can do 7 cars a day (only 2 more) that’s now $35 / day, which is $280 / month.

See my point, at the end of the day I feel like its important to work hard, but you have to take the time to make sure that what you are working on is moving you towards your end goals in life, sitting and grinding away at a job that you don’t enjoy and has no growth potential it may get you millionaire status some day, but the risk would be lower if I focus on careers where the level of effort has an impact on the return on the investment.

Ultimately we all have a finite amount amount of time and we invest it in our careers and skills so we should focus on items that have an acceptable level of risk and a reasonable return on that investment.

Overall I recommend the box, but would advise you to keep this in mind as you read it.

Book Review – Innovator’s Mindset

So I have been trying to read more, and focus less on technical technology reading more books on a variety of topics. So one that I wanted to check out was the innovator’s mindset.

Right now my family has been going through a lot of changes, and at the forefront of that is the fact that my kids are a school age, we are moving, and I’ve been looking at my approach to tackling innovation and education as the mission of our family is to secure the future of our kids.

Because of that I was really keen to hear options for people use to help guide new innovative learning methods for not just myself but my children as well.

The book interesting mirrors the work of Angela Duckworth, and her book Grit. And Carol Dwreck’s book, Mindset. Both of which I am very familiar with, and enjoyed and have seen value in my life.

The interesting part he points to here is honestly that the education system. Is ripe for disruption. Many schools and institutions cling to the old ways of doing things and are afraid to take risks with how they teach.

The focus of the book is around how we as a society teach problem solving but not problem fighting, the idea of how you look at the world and see that something is wrong. That requires intelligence but more than that requires empathy. The ability to understand how people feel and to gain understanding into their situation and problem.

The intention is then that we should focus on using learning to drive outcomes, because knowledge that is not practical is wasted effort. There needs to be a way for the student or person to absorb that knowledge into the fiber of their being, into their structure of knowledge for application.

The idea of the innovators mindset is that we need to seek alternative viewpoints take risks and recognize that their is a cost to not changing, and know that failure and iterations are a part of that solution.

I enjoyed the focus on how to embrace the idea of taking risks and the kid of challenges you may run into, and overall found this book to be great. I think he focused a little too much of examples that involved social media. This is not a magic silver bullet for education.

But one point I do agree with is his focus on honest and public reflection. The idea of declaring you will do something is a great way of encouraging accountability, but to the authors point, it also encourages us to be more thoughtful of our ideas if we know that others will be reviewing and challenging these ideas. This can lead to a better more thoughtful effort and a crowd sourced solution to problems.

The biggest thing that really landed in our family is that right now the education system is very focused on consumption, and pushing kids to consume what is thrown at them. While this type of learning can work and has its place, there is such a thing as focusing on empowerment. The idea is to take an objective, and help our kids to have the resources to learn everything they need to obtain that objective. It’s an interesting piece of learning but it works.

So how did this help, my daughter, has been struggling with learning her letters in kindergarten, worksheets are like pulling teeth, flash cards are boring. She’s been having a rough time. While listening to this book, I noticed my daughter loves putting on plays and shows at home. So I asked her “let’s make a letter video.” Not only did she get excited but she pushed passed what was required. After practicing her letters making videos and her wanting to practice “for the video.” She took her test and went from struggling to pass 1 list of letters, to passing 2, and almost a third.

It occurs to me this goes beyond kids, in my own profession. Anyone can learn a technology but it becomes a lot easier when you focus on solving a specific problem and direct your learning as such.

There is no better place to learn than the foxhole. Ultimately it leads to much better drivers to success at the end of the day.

The interesting part also was the second half of the book which talked about how to as a leader foster a culture of innovation within your organization.  And the key points I would acknowledge here are that the giving peole the freedom to fail, and fail fast.  And encouraging your people to take risks.  This is something that I’ve been working on in my family and with my kids, and celebrating the fact that they “tried something new”.

Overall I recommend the book, it gave some good ideas with regard to approaching innovation that I found enlightening, provided you can get past the “education system” focus.