1- Everyone else seems to be!
Rich Dad Poor Dad has sold 26 million copies alone. Millions more have bought The Richest Man in Babylon. There are many other ‘best sellers’ which help people manage their money. The reason they sell so many copies and that there is an increasing number of these types of books is that there is a demand from people to help them manage their money.
People don’t want to get left behind – therefore more and more people are starting to read these types of books.
2- They are worried that people will feel they are lazy or lost if they don’t
If you are the same as me, you’ve probably had conversations with people who have talked about what they have done with their money – what great investments they have or how they have managed to save a load of money by switching utility provider. I know that when I’ve had these conversations I’ve felt that i should be doing more with our money. I would fear they would ask ‘what do you do with your money?’ as my answer would be ‘not much’. There are two ways in which I felt. The first is lazy as I should be doing something with our money. Secondly, a bit lost as to what to actually do. Those are reasons we are now turning to books to help us feel we are taking action and learning what to do.
3- If they don’t read books about money they could be losing thousands of dollars
Similar to the point above, it’s not just about people worried about the feeling of being lazy or lost that is leading people to be concerned by their lack of action. It is also the fact that they could be missing out on what’s essentially ‘free money’ if they don’t take action.
Switching utility provider to a cheaper one only costs you a bit of time but could save you lots of money. Reading books about investing, such as ‘The Long and Short of it’ and then investing your money sensibly could easily multiply the amount of money you have.
4- Friends, let’s call them Sam and Jo, are becoming rich as they have been reading books about money
Most people seem to judge how rich people are based on their job. If their friends are doctors then they are deemed to be richer than their friends who are teachers.
Well, that may be true in a lot of cases, if you only focus on their earning potential. That doesn’t mean they are richer. The people who will be rich are those that can save what they earn and invest those savings properly.
Most people spend more when they earn more. So the doctors are not necessarily richer than their teacher friends (although they may have more ‘stuff’ and holidays) as won’t be able to retire any earlier.
In this example, if the teachers saved some of their earnings and invested it, they could grow their money to a point where they could retire earlier than their doctor friends. Imagine being able to quit your job and enjoy being financially free (remember your expenses are likely to be much lower than those of the doctors) whilst the doctors are working until they are 65!
5- People are reading books about money to challenge their existing ways of doing things
Even people who feel they have been managing their money are looking to challenge what they are doing. Books are a great way to get new ideas as they won’t verbally say, what you’ve been doing before is wrong. So you can change without any pressure or embarrassment.
Which reason will get you thinking about managing your money?
Each of the reason above, especially reason 4, got me thinking that I should manage our money better. That led me to reading my first personal finance book Rich Dad Poor Dad. I’ve not looked back since. As a result of reading that book I have taken action to put what I read into action. See how in my blog ‘Becoming a Rich Dad‘.
I started my blog, MoneyBooks.blog, to help people find the right book to help them better manage their money. See my top recommendations here. I’m also writing blogs to show that hopefully good things can happen if you put these books into action.
I actually put a book into action by writing this blog!
I really enjoyed writing this blog for a number of reasons. Firstly, it helped me think more about why people would want to subscribe to my blog which reviews books about money. Secondly, it meant I got to put some of the new things I learnt from ‘The small BIG!’ book.
‘The small BIG!‘ considers different ways to help persuade people to take action including, making the action a social norm (point 1), highlighting the downside, in terms of perception of themselves, of not taking the action (point 2), highlighting the downside, in terms of loss, of not taking the action (point 3), highlighting the benefits of taking the action (point 4) and, mixing old and new to come up with new ideas (point 5)
I hope it works and that you think about reading these books. I can honestly say I really do believe reading good money books can help you make the most of your money and avoid being ‘ripped off’ by bad personal financial advisors (‘What is my issue with personal financial advisors?‘).
You can see what actions we I have taken after reading my top rated personal finance book, Rich Dad Poor Dad, in my blog ‘Becoming a Rich Dad‘. Also, if you are looking to invest then see my blog based on the book ‘The Long and Short of it‘ called ‘The long and short of investing to become a Rich Dad‘.
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