Summertime readings

As a child I was a “doer”; I liked to run around, wrestle, and play sports. I wasn’t particularly fond of sitting in one spot, or sitting in general. But in my later years I’ve grown quite fond of this activity called “reading”; maybe you’ve heard of it. Chances are you’re doing it right now. But reading is fun; it’s opened up a whole new world of wisdom and knowledge for me.

With this new endeavor I’ve adopted a “non-fiction only” rule. Fiction, in my mind, is fluffy, make believe, and a waste of time. Who wants to read Charles Dickens talk about some magician’s life? Sure, David Copperfield did some pretty cool tricks, but how is that going to affect me? That’s why I prefer non-fiction. I want to read about topics that I can apply in my own life.

Whether you are a little confused (a.k.a. an avid fiction reader), an intelligent non-fiction reader, or a doer, allow me to recommend two books for your summertime readings. They’re very interesting, enjoyable and entertaining. The first books will open your eyes to fun statistical arguments that you never thought anyone could prove. The second book surrounds personal finance in which the author outlines a few guidelines that one can employ in order to exit the “rat race”.

Freakonomics: A Rogue Economist Explores the Hidden Side of Everything    The authors, Steven D. Levitt and Stephen J. Dubner, explore fascinating topics that one would not expect to be researched, let alone published.

One topic that is covered is why drugs dealers still live at home with their parents. He uses insider information to show that drug dealers don’t really make that much money, just a few select at the top do. But the reason why those drug dealers still deal is because those at the top make A LOT of money. So, they weigh the pros and cons and decide that it’s worth the chance.

Another topic researched is parenting tactics. The authors use statistical data to argue that parenting tactics don’t play a major role in the educational success of their children. It doesn’t matter whether one parent stayed at home, or both parents worked; whether a child is read to, taken to museums, or spanked. What matters most is simply the parent. If a parent is well-educated, statistically the child will become well educated as well. All in all, this is a very fun book to read and it will show you that statistics can be cool.

Rich Dad, Poor Dad There are two main points that I took from this book: the difference between an asset and a liability, and to save first and spend second. The author, Robert Kiyosaki, makes the astute observation that an asset is something that puts money into your pocket and a liability is something that takes money out of your pocket. With this in mind, a car, a boat, or a house, would be considered a liability because it only sucks out money. However, if the same belongings were rented out to generate some sort of income, they would be considered assets because they are bringing money in. The trick then is to reduce those items in our lives that suck money from our bank account, and accumulate those that bring money in.
The second point is to save first and spend second. In my experience, the average household spends the money that comes in and then saves whatever is left over. But Kiyosaki stresses that in order to get ahead financially one should set aside the savings at the beginning of the month and then spend whatever is left over. This disciplines us to be financially responsible with the resources left over and allows us to save quicker than we otherwise would have.

Now that I’ve suggested books for you to read, I’d like to hear from you. What is some   business or financial books you’d like to suggest?