Personal Finance Genius
  • Home
  • Personal Finance Tips
  • Contact

8 Reasons You’re Still Broke

3/19/2016

0 Comments

 
Empty pockets - there are reasons why you're poor and still broke.
Are you riding the “excuses train”? Do you find yourself saying any of the following excuses?
  • “My job doesn’t pay enough.” (Mine either.)
  • “The system is stacked against me.” (That’s funny. Tell me another one.)
  • “It’s too hard.” (Aw, poor baby. So is being broke. Pick your hard.)
  • “I work hard, so I deserve to spend my money.” (LOLZ you deserve nothing.)
  • “I’ll make up for it later.” (I wish this were true, but habit habits are hard to break.)
  • “I’m doing better than my friends.” (Yeah, because they’re doing so well.)

You can’t blame everything on your circumstances or other people. If you can’t take responsibility for yourself, you are assuming the role of a helpless victim. Things don’t happen TO you, they happen BECAUSE OF YOU. With that being said, here are eight reasons you’re still broke. 
Determination defined, determination definition
1. You don’t pay yourself first.

I put this at #1 for a reason. Above all else, your first and most important loyalty should be to yourself. I could’ve made #1 “You don’t have a budget”, but to pay yourself first, a budget of some kind is necessary anyway.

Most people pay all their bills and then save whatever is left. You should be saving money and then paying bills with whatever is left. Set aside a certain portion of your income the day you get paid. You should get into the habit of covering your bases before rent, groceries, or as we’ll talk about later, cigarettes and lottery tickets.

According to a Bankrate survey, less than 25% of Americans have enough emergency savings to cover six months of expenses. Doesn’t this scare you into wanting to save more? I strongly recommend that you get onto an automatic savings plan to make saving money as painless as possible. Set up your bank account to transfer a certain amount from checking to savings on the same day you get paid. You won’t miss the money, I promise!

2. You don’t have financial goals.

In my new book, I literally wrote an entire chapter on setting financial goals. A goal is something that you plan to accomplish. Financial dreams are just hopes with no plans. Financial goals have a solid plan in place. Here are a few quick tips on creating financial goals.
  • List your financial goals. Figure out what you want to accomplish. Is it paying off debt? Buying a new car? Saving a certain amount?
  • Figure out the cost. You need to know how much money it will take to reach the goal, so do some research. When you get the number, double it. A goal is worthless if it doesn’t stretch you.
  • Choose a target date. A goal is a dream with a deadline, so set a date by which to accomplish your goal.
  • Work backwards. Figure out how much you need to save by dividing the estimated cost of your goal by the length of time until your target date. If you divide by the number of weeks, you’ll be able to see how much money you’ll need to save on a weekly basis to meet your goal.
  • Work your budget to include the money you need. Check your old bank and credit card statements to eliminate unnecessary expenses. Be ruthless. 
 
3. You don’t have multiple streams of income.  

A lot of people have an underlying sense that increasing their income will help their financial situation, but they go about it the wrong way. If you’re working two or three jobs just to make ends meet, you’re not alone.

We are living in a gig economy – if you don’t have at least one side hustle, you’re way behind. You need to do whatever it takes. I’ve detailed cars, cleaned houses, sold ice at car shows, traded silver coins, helped people move, and transcribed audio to earn extra money. There’s no ego in making money, so don’t be afraid to bus a few tables or clean a few toilets if it means a fatter bank account!

Here are some additional streams of income you might consider:
  • Real estate. Build your net worth, lower your tax liability, and get cash flow? I must be in heaven. You could fix and flip too.
  • Royalty income. Write a book, sing a song, or develop a product. You could even buy someone else’s work and receive a royalty check each month.
  • Become an affiliate marketer. You can team up with a company and sell their products. I’m doing it right now – don’t you see the ads all over the site?
  • Start a side business. You can do this even if you have a day job. Figure out something you can do right now, without going back to school, that others will pay you for. Then figure out I way to make money from it.
  • Investments. This is my passive income stream of choice. I love dividend stocks because they provide cash flow. 

Picture
4. You like to buy stupid stuff. 

If you live like you’re rich before you’re actually rich, you’ll never get rich. Tweet that!

Isn’t it ironic that some people complain that they can’t afford health insurance or to save in an investment account, but they spend thousands of dollars on cigarettes and alcohol? I have no sympathy for these people.

On average, a smoker will spend around $2,000 per year on cigarettes, while a regular drinker drops about $500 per year on booze. If you cut out these vices and pocketed the money, you’d have $25,000. That doesn’t even assume you invest the money – it’s just cold, hard cash.

If you like to smoke and drink, have fun. Just remember that there are many costs associated with smoking and drinking. Let’s take a look at the costs that come with smoking:

  • Life insurance will cost more since smokers have a greater risk of dying at a younger age.
  • Home insurance will cost more since smokers have a greater risk of burning down their house.
  • You guessed it – car insurance will cost more too. Smokers have a great risk of crashing their vehicle.
  • Dental expenses will add up since smoking ruins your teeth.

Here are some other things you should stop spending money on:
  • Bottled water. Why? Just why? Get a filter, dude.
  • Incandescent light bulbs. Get CFLs instead; they last about five times longer and use around 75% less electricity.
  • Late fees. Start being a responsible adult instead.
  • Brand name products. Stuff like wrapping paper, detergent, dryer sheets, and cleaning products are remarkably cheaper at the dollar store anyway.
 
5. You load up your credit cards and make minimum payments.

According to Nerdwallet
, the average indebted American household is $15,762 in credit card debt. When I first heard this statistic, I didn’t believe it. I thought, “There’s absolutely no way people could be that stupid.” Alas, tis true.
​
Carrying this much debt means the average household pays $6,658 in interest per year. That’s a tenth of the average household income. In just interest.

Credit cards make it easy to spend. It’s possible to buy a $3,000 something-or-other and only pay $60 per month until it’s paid off. You can afford $60 per month, right? Of course you can! However, the biggest mistake people make with credit cards is just paying the minimum payments.

Making minimum payments on your debt is the best way to stay broke. Interest charges will make you their little b****. Making minimum payments is like running on a financial treadmill – you get nowhere.

If you have an 18.9% interest rate credit card with a $5,000 balance, guess how long it would take you to pay it off by paying a $200 minimum each month?

$5,000 divided by $200 equals…. hmmm….. 25 months. A little over two years and it’ll be paid off, right?

Wrong. It would take you eleven years and five months to pay off the entire balance, meaning your original $5,000 debt would’ve cost your $8,109.

Pay more than the minimum, please. Note that I’m not saying you should get rid of your credit cards. I’m not dumb – we need them to reserve hotel rooms, rent cars, and book tickets for travel. However, you want to make sure you pay off your credit cards in full each and every month. You wallet will thank you.
 
6. You love playing the lottery.

Poor people sure love their lotteries, don’t they? They’ll do anything for a chance at a big payday, as long as they don’t have to work for it.

Lottery tickets return about fifty cents for every dollar played, but people still pour buckets of cash into them. Poor people spend nearly 10% of their income on lottery tickets.

Some people see the lottery as their best opportunity to improve their financial situation, even though buying tickets exacerbates the very poverty from which they’re trying to escape.

Now, I’m no stranger to the lottery – I buy a ticket every time the jackpot hits $400 million or more. But believe me, I’m not spending 10% of my income on pipe dreams.

Lottery tickets are regressive taxes on poor people, because each tickets costs relatively more for a poor person than a rich person. Because the government relies on lotteries for funding, they pump millions of dollars into the marketing machine convincing people that it’s a good idea. You may not have an equal chance of success through a job, connections, upbringing, or education, but everyone has an equal chance of winning the lottery! Of course, you could always increase your odds by winning the lottery with the law of attraction. Just saying! 

Stop chasing some big windfall. Realize that lotteries are a vicious cycle. They exploit the desire to escape poverty while directly preventing you from improving your situation. 
Lottery tickets - one of the reasons why you're still broke.
Picture"And it was at that moment little Timmy realized he needed some new friends."
7. Your friends are bad influences.

If you hang around five broke people all day, it’s naïve to think you won’t be the sixth. You are the average of the five people you spend the most time with, so evaluate your current friendships. Are your friends going into debt for vacations, taking on a massive mortgage, and wrecking their financial future? Well, take a look in the mirror, buddy!

Take some time to evaluate your friends and their financial habits. Keep in mind that this doesn’t just apply to money – it applies to love, success, fitness, and almost everything else in life.  
 
8. Your income hasn’t increased.  

This is a no-brainer. If your salary isn’t moving forwards, it’s moving backwards because of taxes, inflation, rising medical costs, etc. If you’re still earning starting pay at the job you started ten years ago, you’re doing something wrong. Either you don’t have any ambition or you haven’t increased your value to the marketplace (truth hurts, doesn’t it?).

Let’s say you start a brand-new job making $35,000 per year. If you just got the standard 3% raises (if that!) you’ll be at $47,000 per year in ten years. Depending on your skills and the value you bring to your company, start asking for a raise.

Use sites like Salary.com and Glassdoor.com to see how your current pay compares to similar positions. These sites will give you an idea of market-based pay rates for your job.

Planning and preparation are key to asking for raises, so make sure you do your homework. First, learn about your company’s pay practices. If the norm is to only give salary increases once per year after an annual review, sorry, but you probably won’t get a raise at any other time.
Assuming there’s still hope, here’s what you should do:

  • Make a list of things that you’ve accomplished for your company. This will refresh your boss on how valuable you are and what you bring to the table. You should document cost savings, productivity improvement, above-and-beyond customer service, and any other way in which you’ve contributed to the success of the organization. These notes serve to justify your pay increase.
  • Develop a goal for your pay increase. You must have a target in mind that rewards your contributions and extra responsibilities added to your job.
  • Set up a meeting with your boss/supervisor to discuss your current compensation. Do not ambush your boss with this conversation! Give him/her time to prepare. Who knows, your boss might want the extra time to go to Human Resources and put together a pay plan for you…
 

0 Comments

How Much Car Can I Afford? Here's How Much You Can Spend on a Car

3/10/2016

1 Comment

 
Picture
The average car payment is nearly $500 per month. How much car can you afford?"I'm going to need 10X this for my car payment..."
Do you know how much you can spend on a car? Figure out just how much car you can afford with this guide.

The average car payment is $482 for a new car (according to USA Today). The average car payment for a new car is $351.

Most car buyers sign up for a six-year loan (that’s 72 months!) at an average interest rate of 9.6%. The average price of cars financed with these egregious loans hovers around $26,000, but the total cost of the car loan is over $34,000.

How did I get that figure? I used this handy total loan cost calculator over at Bankrate.

This is a horrible investment for something that loses a quarter of its value the minute you drive off the lot. After four years, your precious new car will have lost about 70% of its value. So after making 72 payments, you’re left with a car that’s worth maybe six grand. Ouch.

If you haven’t figured it out already, I’m an advocate for buying used cars over brand new. I would much rather see someone buy a used car and pocket the extra cash. Imagine taking that $482 every month and putting it into an investment account. What could you do with an extra $482 per month if you weren’t putting it towards a car? 

How To Estimate Your Car Budget

Most people screw up right at the beginning. Rather than figuring out a much-needed budget, they wing it, assuming they can cover the car payments. Actually sit down and go through your income and expenses. Look at your bank accounts, credit card statements, and your variable expenses (like groceries and clothes).Make sure there is enough wiggle room for emergencies, your savings, and other disposable income (your fun money!).

A common rule of thumb is that you shouldn’t spend more than 10% of your monthly household income on a single vehicle. This 10% figure includes all automotive expenses, such as gasoline, major repairs, routine maintenance, replacing common items, and insurance.
Also know that the total cost of a car is more than the stick price (although you shouldn’t be paying sticker anyway – negotiate!) because it includes sales tax, title, and registration fees.

Finally, don’t forget to consider future expenses. If you plan on financing the car for six years (please don’t do that) then you should be aware of your potential financial situation in the future. A lot of your expenses, such as rent and groceries, will probably increase over the years, which means that if your income doesn’t increase, you’ll feel the pinch. Plan for other large expenditures such as repairs, buying new furniture, having a baby, etc.

If you figure out that you can afford a $550 monthly payment, you could finance a $15,000 car for 36 months or a $32,000 car for 84 months. This means you could either get a Honda Civic or an Audi A3 with the same monthly payment. Hopefully you’ll be smart enough to choose the Civic. 
Blue Honda Civic - the average car payment for a Honda Civic would be lower than the Audi A3. How much car can you afford?
Picture
Picture
How Much Does It Really Cost to Own a Car? The True Cost

Speaking of Audis and Hondas, expensive cars have much higher ownership costs because they cost more to insure, maintain and repair. Even if two vehicles have the same price, it doesn’t mean that they will cost the same amount over time. One of my favorite car-buying tools, if you’re buying a new car, is the 5-Year Cost to Own, which is the total amount of vehicle-related expenses you’ll likely have to cover during the first 5 years of owning a car. For example, the 2016 Chevrolet Spark LS has a 5-Year Cost to Own of $26,254, while the 2016 Toyota Yaris L has a 5-Year Cost to Own of $30,326.

The 6 Biggest Costs of Car Ownership

Gasoline.
Yes, gas prices are cheaper now, but I wouldn’t expect this to last forever. Remember when gas was $4 per gallon? There’s a big difference between a Toyota Prius (55 mpg) and a Lamborghini Aventador Roadster (12 mpg).

Finance charges.
If the car dealership doesn’t get their money with the purchase price, you better believe they’re going to get it with financing.

Depreciation.
For new cars, this represents more than 40% of the annual cost of ownership. While most people might not think so, depreciation is definitely a real cost. It’s like having thousands of dollars vanish into thin air.

Maintenance and tires.
If you want to stay on the road, you have to keep your car in good shape. For new cars, it won’t be as much, but if you buy a used car, this number could easily double. Or, if you want to buy a Ferrari F355, you’ll be spending $1,100 just on an oil change. A McLaren F1 requires an $8,000 oil charge.

Licensing, registration, and taxes.
This varies from state to state, so check with yours.

Insurance.
One of the biggest reasons I tell people to buy a used car is because a new car means higher insurance costs. The average auto insurance payment varies by state; here in Delaware, it’s $132 per month.

3 Quick Ways to Help Lower Your Insurance Costs

Shop around/get multiple quotes.
This is the best tip I can give you on lowering your insurance costs, but most people just get one quote and stop. Since prices vary from company to company, shopping around is a must. Get at least three price quotes, but I personally wouldn’t rest until I had five or more. However, be sure that price isn’t your only determining factor – ask for recommendations and check reviews/consumer complaints online. No amount of savings is worth dealing with an awful company when you need to use your insurance.

Check the record.
Choose a car with a great safety record and/or a low theft rate. Safer cars that don’t get stolen often have lower insurance costs.

Get a higher deductible.
A deductible is the part that you pay before your insurance kicks in. When you request a higher deductible, you significantly lower your costs. Increasing your deductible from $200 to $500 or $1,000 could save you up to 40%. Just make sure you have the money set aside to pay it! 

How to Calculate Your Monthly Car Payments
​

An online calculator for calculating your monthly car payment is this auto loan calculator from cars.com.

Two of the biggest factors determining your monthly car payment are your down payment and any applicable trade-in value.

Down payment

I believe that you should put at least 20% or more down when buying a new car, but the evidence shows that I’m in the minority. An Edmunds analysis of 2015 auto purchases showed that the average down payment was about 10%, or half of my number.


I guess the down payment sweet spot doesn’t have to be tied to a specific percentage, as long as you’re getting a car you can reasonably afford and if the down payment doesn’t wreck your savings. A large down payment will allow you to choose a shorter finance term, saving you money in interest charges.

With that being said, just because you have the money doesn’t mean that’s what you have to put down. For example, if you have 50% saved up and can get a wonderfully low interest rate (around 7% or less, preferably much less) by only putting 20% down, keep the extra 30% in an emergency fund, invest it, or save it for the next vehicle.

Trade-ins

Your trade-in car can serve as your down payment, provided it has enough value. Granted, if you’re going to be paying high interest to finance the car, I would put as much cash towards it as reasonably possible. Plus, if you total your car in an accident with enough equity, you likely won’t owe anything, which means you won’t have to deal with additional stress. I never understood how people could buy a car with nothing-down, have the car depreciate 40% and then complain about how long it’s going to take before they’re no longer “upside down” on their loan.
​

Also, check out this great infographic on 14 Ways to Maximize the Value of Your Car Before Selling.

When trading in your old car and buying a new one, please remember that you are not obligated to buy a car from the first dealer you meet. If you both can’t agree on a fair price for your trade-in, just walk away. If you do your homework well in advance, you’ll know immediately if they’ve given you a fair offer. Find out what your car is worth by researching the Kelley Blue Book value.

1 Comment

5 Lessons Learned From Writing My First Personal Finance & Investing Book

3/10/2016

0 Comments

 
Picture
PictureHey, there's my book!
Writing a book for the first time is difficult. It’s also incredibly rewarding.

I just put the finishing touches on my first personal finance/investing book. I’m sure I’ll read it another three or four times and make even more changes, but it’ll officially be available, via Amazon, in the next few weeks.

The book is called Above Average Finance: Investment Strategies to Put You Ahead of the Rest. 

When I first started this blog in October 2014, I never intended to write a book. I thought I would write a few posts here and there, using Personal Finance Genius as my own personal platform. Well, it’s over a year later and this site is still chugging along, with a nice group of dedicated readers and a pretty solid base of content. I want to say thank you to everyone who supports the site and shares the content. I truly appreciate you and my dedication to writing comes from you.

​Although I never imagined I would be putting out a book, I am, and I’ve learned some valuable lessons along the way. Here are some tips on how to write a book that will give you a peek into an author’s mind and help anyone who might want to write their own book. 
​

1. I couldn’t write about everything.

I wanted to call the book Above Average Finance from Day 1. It was just a title that stuck in my mind and really resonated with me. I took my inspiration from the fact that people tend to conform to society’s behaviors. As I talk about in the book, conformity isn’t just limited to spending money and not having a budget – it impacts your health, your career, and your relationships as well. You have to strive to be above average, and I want the book to serve as your inspiration to become a better person.

Because the title stuck in my head, I thought I had to start covering finance topics. I got out a legal pad and wrote a big “personal finance” in the middle. I proceeded to mind map all the topics I could think of that were related to personal finance, so I could cover them in the book. I wrote down:
  • Saving money
  • Budgeting
  • Getting out of debt
  • Credit cards
  • Mortgages
  • Goal setting and planning
  • Major life events
  • Insurance
  • Taxes
  • Real estate
  • Growing your income
  • Stock market investing
  • Retirement plans

Needless to say, I got overwhelmed pretty quickly. There’s no way I could go into depth with each of these topics without cranking out a multi-thousand page book. Instead, I decided to add Investment Strategies to Put You Ahead of the Rest and focus more on investing and the stock market.

One chapter of the book is called, “General Finance Talk”, and it gives a very brief overview of getting out of debt, handling your credit cards, saving money, etc. but the rest of the book is geared more towards retirement planning (which I call “hitting your number”) and stock market investing. I wanted to make this one of the best personal finance and investing books for beginners.

2. I couldn’t bore my readers to death.

Let’s be honest – a book about nothing but retirement planning and stock market investing can get boring, fast. I wrote this book in an easy-to-read fashion because I want it to do well; I want people to enjoy the book, understand what I’m talking about, and pass it on to their friends. I have a feeling that this book would be a great graduation gift – I wish personal finance was taught in school!

I inject my own style into every chapter and I pull no punches. I said things about college and retirement planning that will shock a lot of people. I tried my best to make the book a fun read while still discussing mutual funds and individual stock picking.

What makes the book different is that I have sections dedicated to the psychology of investing and the traits of successful investors. Rather than rote fundamentals or hardcore stock analysis, I think it’s important for the average person (no pun intended) to understand the emotionality behind the markets and why people make such irrational decisions with their hard-earned money. I’m actually a psychology major, so I’ve always been fascinated by human behavior behind market movements. 
PictureA great book by Seth Godin, in Dutch.
3. I had to get organized.

Writing a book involves a lot of moving parts. I had stacks of papers, a vision board, mind maps, and sticky notes all over my desk with ideas, quotes, and topics for the book. Every day new inspiration would strike and I’d scribble down a few sentences I wanted to add. Eventually, I had a big mess.

I confess in the beginning of the book that I ramble on at some parts, but I have good intentions. If you read the book from front to back, I promise you that a lot of pieces will come together and you’ll be a more informed investor.

The fifth chapter became the fourth chapter, and paragraphs were switched around so much I don’t even remember their original order. The book went through the proofreading/editing process several times and looks nothing like the first draft. Everything is in order now (until I make last minute changes) and it’s extremely gratifying to know that I have a finished project.

Throughout the entire process, I became more familiar with home and office organization tips and tricks, which allowed me to get more done. I started by purging my desk, getting rid of everything I didn’t need or want. Then, I put all my equipment (legal pads, pens, sticky notes, etc.) in close proximity to my work space. As soon as I was finished writing for the day, I would put them away – out of sight, out of mind! A clear desk is a happy desk; the only items that should be on your desk are the ones essential for daily use. One of the coolest office organization solutions I’ve found is this organizer caddy. You can easily store all your pens, staples, paper clips, notes, markers, etc. and clear them away with ease. For $10, it’s a steal.

4. I had to get started.

Now that I have the book under my belt, one of the most common questions I get is, “How do I get started writing a book?”

The answer is probably different for everyone, but what worked for me was starting small. Sure, I had been contributing to this blog (and a few others) for awhile, but a book is different. I remember reading that John Grisham would wake up every morning and write one page. I did the same thing, but with a word count. I wouldn’t let myself go to bed at night without writing at least 500 words, whether it be in sketch/rough draft form or in the actual book.

Another thing that helped me was the Pomodoro Technique. I would use a timer app or Google Chrome extension and shut off all distractions for 25 minutes. At the end of my session, I would have a quick five-minute break and then get back to work for another 25 minutes. Pomodoro Technique research has demonstrated that it helps to manage procrastination and increase task focus. The science behind the Pomodoro Technique is that uses a short work and reward cycle, theoretically increasing your incentives and reinforcement to keep working. Short work also decreases your internal resistance to getting started, making you more effective. It definitely worked for me, so give it a try.

5. I had to keep going.

The first mind map was realities check that, unless I wanted to pen a War and Peace type book, I would have to narrow my focus. Still, I had to start writing. The book ended up being between 165 and 210 pages, depending on how it will be formatted, and I thought that writing around 200 pages would be a breeze. Wrong! I’d be lying if I said I didn’t get writer’s block – several times.
According to Wikipedia, writer’s block is “a condition, primarily associated with writing, in which an author loses the ability to produce new work or experiences a creative slowdown. The condition ranges in difficulty from coming up with original ideas to being unable to produce a work for years.”

Thankfully my writers block didn’t last for years! I finished the book in a few months, but I had severe writer’s block along the way. I always knew how I wanted the general outline to be, but the specifics were a struggle for me. I learned that this was a fairly common problem; authors will have an outline but find it difficult to get through any one part of it. In fiction, they might have two cool moments but can’t figure out how to link them together. For me, it was more utilitarian. I wanted to boil down the information in such a way where it would help the most people in the best way.

Another big cause of writer’s block is perfectionism. A lot of writers want everything to be absolutely perfect before they publish their work. Sometimes they even want their outlines to be perfect, paralyzing them before they ever pick up a pen or touch a keyboard. If you’ve read even one post from me, you’ll know that I’m not a perfectionist – I make tons of mistakes, and I’m okay with that. I knew from the get-go that it would be hard and that I would mess up. Yet, I kept hearing Seth Godin’s voice screaming, “Just ship it!”
​
You can overcome writer’s block and cure it fast by changing your environment. Sometimes you just need to take a break. If you take a walk, get some coffee, or get your blood flowing, ideas will come rushing back to your brain. Some writers have told me that listening to music, like jazz, helps to overcome writer’s block. I never put on any Miles Davis while writing my book, but I found that some type of movement was critical for me to overcome writer’s block and cure it fast. You could just be a tough guy and keep writing, brutally persevering through any paralyzing fears and doubts you might have. Or you could throw on “Blue in Green” or “A Night in Tunisia” and jazzercise.
 
I’m so thankful to have written this book and I look forward to sharing it with the world. If you have any questions about the book-writing process or the book itself, let me know in the comments! I plan on answering everyone. 

0 Comments

The 5 Best Law of Attraction Books That Changed My Life (Abraham Hicks, The Secret, etc.)

3/9/2016

1 Comment

 
Law of Attraction quotes and affirmations seem to be everywhere. Many people have been introduced to this law because of a certain movie (The Secret), but I believe its greatest benefits come from concentrated study.

The Law of Attraction states that your dominant thoughts are attracted into your life. When I first heard of this, I thought: “That’s obviously false. If it were true, I’d be a woman!”

The more I pondered on it, the more it made sense. I noticed that my main thoughts almost always found a way to manifest into my life. Look around you – everything you see was originally a thought. I’m a firm believer that if you focus on your goal long enough, you’ll find a way to achieve it.

I’m not exactly a rah-rah type person, and I prefer the LOGOYA (Law of Getting Off Your @$$), but I’m definitely a student of the LOA (Law of Attraction). I’ve read dozens and dozens of books on the subject. Here is a list of the ones that had the biggest impact, complete with a quick review and their respective Amazon link. 

Also see: “10 Greatest Self-Improvement Books That Will Transform Your Life”  
1. Think and Grow Rich by Napoleon Hill

Where do I begin? This is probably the greatest book I’ve ever read. In the book, Hill has “the secret” to getting rich. He never tells you explicitly, but it’s mentioned no less than a hundred times throughout the book. I personally believe I know what the secret is, but I’ve also studied all of Napoleon Hill’s work. It was only after a burning desire to find the secret, faith that I would find it, and a never-ending persistence to find it, did I discover it. Maybe that will help you in your quest for the secret. Read the book and you’ll see what I mean.

Notable quote: “The starting point of all achievement is DESIRE. Keep this constantly in mind. Weak desire brings weak results, just as a small fire makes a small amount of heat.”


2. The Trick to Money Is Having Some by Stuart Wilde

This is one of the more recent books I’ve read, but wow was it a game-changer. This is one of the best books I’ve ever read. It can be read in an afternoon and it doesn’t get boring.

Stuart Wilde tells it like it is, informing the reader that money is the key symbol of survival. People become obsessed about money because their egos keep them obsessed about survival. He also talks about how many people live unhappy lives because all they do is try to please others. When they spend all their time trying to please others, they never have any time to decide what they really want out of life, and their life is wasted. True empowerment lies with creating your life the way you want to live it.

Wilde also stays in harmony with the LOGOYA in chapter seven, where he explains that if you want to become wealthy, mediation and spirituality isn’t enough – you have to enter the marketplace. This is a wonderful law of attraction book, but it doesn’t tell you to just sit on the couch and wish for a check to come in the mail.

After reading this, I started reading a lot of Stuart Wilde’s other works and they’re almost as good, but this is the one that did the most for me. I encourage you to check out his other work if you enjoy this book.

Notable quote: “All philosophies which teach that poverty is groovy, do so as a cop out. It keeps the non-performing members happy for they can live in the ego-trip of thinking that somehow their lack of creativity and effort will be blessed at a later date. I think they are in for a rude awakening but that is irrelevant.”


3. Psycho-Cybernetics by Maxwell Maltz

Maxwell Maltz was the first person to popularize the term “self-image”. Before we can become wealthy, we must see ourselves as wealthy. Maltz was a plastic surgeon who was astonished at his patients’ personality changes after surgeries; they would see themselves as completely different people!

In the book, he makes the argument that the discovery of the self-image is the most important psychological discovery of modern times, since learning to modify and manage it allows a person to gain tremendous confidence and power. Your behavior is largely based on ingrained, hidden patterns of thought. Once you alter this negative thinking, you’ll be free to tap into more of your potential.

The reason I’m listening this as a law of attraction book is because of the “cybernetics” part. Cybernetics is like a heat-seeking missile. That missile will continuously seek out its target. In that sense, Maltz outlines your subconscious mind as a goal-striving servo-mechanism that works automatically and impersonally to achieve whatever goals you set for it. If you set it for success, you’ll strive for success, but it works just as faithfully as a “Failure Mechanism.” I love this book because it outlines how your mind works to bring your goals to life.

Notable quote: “When you see a thing clearly in your mind, your creative ‘success mechanism’ within you takes over and does the job much better than you could do it by conscious effort or willpower.”


4. The Magic of Believing by Claude M. Bristol

Legendary comedienne Phyllis Diller credits this book as the one that changed her life forever. Norman Vincent Peale, author of the highly acclaimed Power of Positive Thinking, calls this book one of the greatest inspirational and motivational books ever written. The book explains that a single golden thread runs through all magic, voodoo, religion, and occult – belief!

The book explains the “card method” and the “mirror technique”, which can be effectively leveraged to tap your subconscious mind. People tend to get what they expect, fulfilling their own prophecies. If you want to get ahead in life, read this book.

Notable quote: “Thought is the original source of all wealth, all success, all material gain, all great discoveries and inventions, and all achievement.”


5. Ask and It Is Given by Abraham Hicks (Esther and Jerry Hicks) 

The first time I read this book, I wasn’t crazy about it, but as I read it again and again, I came to feel its impressive power. Esther Hicks claims to channel the non-physical entity, Abraham Hicks, who gives her methods for manifesting desires. The language is somewhat flowery, but every paragraph contains wisdom that deeply resonated with me.

The best part of Ask and It Is Given is the 22 processes to help with manifestation. The book gives you immediately usable and useful instructions and how to attract what you what. It spells out exactly when to use them (it depends on your emotional state) and how to gauge your progress. Too many other books have a ton of wisdom, but don’t spell out exactly HOW to get what you want. If you’re anything like me, you’re a skeptic, but after trying a few of these (in particular, the “Prosperity Game”) I am constantly amazed.

Another great book by Esther, Jerry, and Abraham Hicks is Money and The Law of Attraction. I read this after Ask and It Is Given and enjoyed it, but Ask and It Is Given helped me the most.

Notable quote: You are actually pre-paving your future experiences constantly. You are continually projecting your expectations into your future experiences.”


​BONUS: If you are struggling with the law of attraction, read this... 

The law of attraction has become a massive cultural phenomenon. Movies have been released about it. Countless books have been written. 

It's super easy to get lost in the noise. You read and learn about the law of attraction, but if you're anything like most people, you feel like something's holding you back. 

You can't quite put your finger on it. 

I felt the same way until I discovered Manifestation Miracle. 

It's the best resource to the law of attraction I have ever found. 

​Don't believe me? Read this review of Manifestation Miracle. 
1 Comment

    Archives

    August 2020
    January 2017
    November 2016
    October 2016
    August 2016
    July 2016
    June 2016
    May 2016
    April 2016
    March 2016
    February 2016
    January 2016
    December 2015
    November 2015
    October 2015
    September 2015
    August 2015
    July 2015
    June 2015
    May 2015
    April 2015
    March 2015
    February 2015
    January 2015
    December 2014
    November 2014
    October 2014

DISCLAIMER: Advice and information provided on this site is general advice only. Past performance is not indicative of future performance. Before making financial decisions, seek proper financial advice. By using this site, you agree that PersonalFinanceGenius.com shall not be liable for any loss or damage whatsoever out of or in connection with any use or reliance on the information or advice provided on this site. All users of this website accept and agree to comply with this disclaimer.  This site contains affiliate products and sponsored posts from which compensation is received. 
Privacy Policy
Sitemap

Copyright ©2020 Personal Finance Genius, All Rights Reserved

Photos used under Creative Commons from RL GNZLZ, danielmoyle, Maxim34374, C. Matges, Derek Bridges, FAS Fotos, Celestine Chua, Lion Multimedia Production U.S.A., mighty.travels, bobbi vie, Tom Hannigan, @CHURCH4U2, RLHyde, symphony of love, Sam Howzit, Wonder woman0731, Fisher Chia, Benoit cars, cafecredit, RL GNZLZ, torbakhopper, Elvert Barnes, BarnImages.com, Clint__Budd, GotCredit, apardavila, Barta IV, Falcon_33, 401(K) 2013, okchomeseller, moneypictures, Janitors, timsackton, superba_, Insulinde, marsupilami92, jonseidman, Dave Hamster, torbakhopper, Montgomery County Planning Commission, Tyler Merbler, Cassandra Kinaviaq Rae, Marco Raaphorst, Jason Cartwright, Elvert Barnes, Skin - ubx, Tobyotter, mikecogh, Max Denisevich, GotCredit, Davmi Pics, Senado Federal, DonkeyHotey, anotherlunch.com, investmentzen, michael_d_beckwith, OC Always, mrgarethm, Paul L Dineen, Janitors, torbakhopper, Dana Lookadoo - Yo! Yo! SEO, Lummi Photography, Daniel 5tocker, krossbow