Wednesday, 8 May 2013

Book review: Millionaire Teacher

The first real blog post - a book review of Millionaire Teacher by Andrew Hallam.

Being frugal, I read this book in the neighbourhood Chapters. But, as I finished the book, I decided I probably need to own a copy, and I will tell you why.
This book is a guide of how to build wealth on a middle class salary. It is very well written, the author has an earnest way of sharing his insights and does not come across as preaching.
Some of the topics are reiterated in millions of other financial blogs and personal finance books:
- Pay off high interest debt (ex. credit card debt!)
- Start investing early and let compound interest work its magic
- Be frugal
Some more interesting topics:
- Don`t give your kids free money: I do agree with this, being the only child, I have to say I have been at the receiving end of a nice RESP account built by my parents. While I had worked summer jobs from time to time growing up, I never had to work since I had an allowance and my parents would give me money if I asked. But I have to give my parents lots of credit, somehow I turn out to be conscious spender. I think it has to do with my parents drilling the idea 'money can be spent but not wasted' into me ever since I can remember. When money is given freely, it is not as valuable to the individual.
- Index investment and financial advisors` conflict of interest: I can speak from personal experience, it is not easy to buy TD e-series! When you open a mutual fund account at TD, the advisor will do all he/she can to talk you out of it.
- If you love to stock pick as a hobby, it should be no more than 10% of your portfolio and how to pick the businesses to invest in: Andrew gave some great guidelines. I conclude that I should just stick to index investing, and read about others' exciting stock picking stories.
I find this book an enjoyable read and a great reminder of what I need to do to stay on track and achieve financial freedom.
If you are interested in the author`s investment prinicples, you can find it at (I`m not making profit recommending this book or the author`s website ):
The author`s website: http://andrewhallam.com/

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