The Money book: Financial Autonomy

Review of Money Book-Financial Autonomy

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Updated 1/06/2022

 

There are many best-investing books, blogs, and podcasts that educate people to be smarter with money and be able to manage their personal finance in a good wheel.

For example, if you want to earn extra income to cover part of the living expenses of your family, then you would consider finding books or podcasts that talk about side hustles or passive income ideas.

One of the great investing books is Financial Autonomy, the book provides foundational knowledge in personal finance, real estate, and stock market investing, which you should consider reading and explore different options to build wealth.

In this review, Financial Autonomy by Paul Benson is considered one of the best investing books for beginners in 2022. The author provides the three main road maps to building your wealth over time.

  • Invest in Stocks
  • Self Employment-Side Hustles
  • Invest in Property

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Key Points

  • The money book: Financial Autonomy provides foundational knowledge associated with personal finance, side hustles, general budget, real estate, and stock market investing.
  • Based on my experience, the Financial Autonomy book is considered one of the best investing books for beginners.
  • And, three main wealth accumulations will be discussed throughout the book: investing in stocks, investing in property, and self-employment- side hustles.
  • The author emphasizes the need to go for three wealth creation pathways in order that you can have more opportunities to create different passive income streams.

 

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Setting Goals: Define Goals with Purpose

The first part of this book is to define your success by goal setting with purpose. In this section, Paul Benson highlights the importance of creating financial goals because it acts as a road map for you to follow the path to reach your final destination.

However, setting goals alone is not good enough due to the fact that the author argues that you must create an effective strategy and take action in the order it will help to take you from point A to B.

I totally agree with the author’s argument and suggestion because you need to have clear goals and an action plan before starting any journey of your life.

In addition, working toward achieving your goals might make you become more productive and create a sense of purpose in your life.

Once you have a clear purpose, then you will know what to do in order to achieve your long-term financial goals.

Related reading: Tony Robbins Books: Unshakeable Summary & Review 2022

Manage Cash Flow

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Click on the link to read the book

 

Moving to the next section, which is cash flow management. The book suggests you should create a budget based on the income and expenses, ensure the income exceeds expenses, 

You will achieve nothing or no hope of achieving financial autonomy if you do not know how to manage your money, which ensures the ” income exceeds expenses”. In particular, the author provides a detailed step-by-step road map on how to manage your budget in an efficient way.

As a result, you will be able to have surplus cash at the end of the month, quarter, and year, if you committed to following the techniques and advice from the Financial Autonomy book.

Reading next: The Intelligent Investor By Benjamin Graham: Book Review 2022

Invest in Stocks

After creating goals and setting the right budget, then you would move to the next part of the book, which is stock market investing. In this section, the author emphasizes the importance of investing in stocks or shares as one of the most realistic ways to accumulate wealth for individuals.

Based on my experience, Finacial autonomy is one of the best-investing books for beginners  due to the following reasons:

  1. The author uses investing principles and techniques to help you narrow down the stock selections, which might help you to pick the right financial products based on your financial expectations.
  2. The term” Core Sattelite strategy” is used in the book to highlight the importance of diversification of investment portfolio, as it is one of the best parts of the book based on my experience.
  3. Paul also teaches you all the basic calculation techniques to choose either dividend stocks or growth stocks in your portfolio.
  4. And lastly, using his own personal story to explain to us how he came across and was successful in the stock investing journey, which is considered an inspirational story for others.

Related reading: Peter Lynch Book Review 2022:One Up on Wall Street

Invest in Property

The next part is to invest in property as the book mentions the two main reasons to invest in property, which are the location and taking advantage of a mortgage to multiply your property investment portfolio.

The reason behind the choice is to help you to create another income stream, which you do not need to find another job and work for money. Instead, the money will work even harder for you while you are asleep or spending quality time with your family.

In addition, the benefits of investing in real estate will mainly come from two main income sources including property appreciation and rental fee collection from tenants.

You will have a chance to learn great techniques on how to minimize the hefty interest fees from your home loans based on the author’s suggestions.

I like the fact that the book provides detail about the costs associated with property investing, and every property investor should get familiar with those factors in order that they can attach those factors to their plans to achieve better financial results.

Importantly, the property selection and strategy based on the book gives you the step by step to select the specific type of property investment to suit your financial needs.

Related reading: 6 Best Real Estate Investing Books for 2022

Self Employment- Side Hustles

The next part is to become self-employed, and you will have opportunities to learn different tips and techniques on how to create a successful side hustle, while still keeping your full-time job.

For this reason, the suggestion to become self-employed has never been a better opportunity than before because the pandemic has kept people staying at home for so long. Thus, it provides a great opportunity for establishing an online business.

Based on the book information, side hustles are considered the best tool to earn extra income, which you can use the free cash flow to purchase tangible assets.

This is because it does not cost too much time and capital to start side hustles.

Interestingly, Paul also uses his personal story to illustrate how he came across his side hustle from the beginning. And later on, it gives him the choice to give up his full-time job as he devotes more time to his family and his business.

It is not only a story, but it is a great motivation and inspirational story for those who want to learn and follow a similar path to reach their final destination ( financial independence and early retirement).

In addition, there is an analogy of using Maslow’s hierarchy of needs, where the author uses ” The Financial Autonomy Hierarchy” to explain different stages of an individual’s side hustles development, which include ” cash flow, reserves, support network, reliable profitability, and scalability”.

Those key components are super important for every entrepreneur due to the fact that they can use the hierarchy as a financial road map to work towards achieving their long-term money goals.

Hence, you should learn and get familiar with ” The Financial Autonomy Hierarchy” to find the right path and reach your financial independence.

 

Don’t forget to share and Join us at Jns-millennial.com for more side hustle tips.

By Jiro Nguyen.

The content is only based on the author’s personal opinion and experience. It is for informational purposes only and does not rely on as a comprehensive or substitute for professional advice.

 

 

FAQ SECTION

What are main concepts behind Financial Autonomy?

The author provides the three main road maps for building your wealth. 1.Invest in Stocks 2.Invest in Property 2.Self Employment-Side Hustles

Best investing books for beginners 2021

Financial Autonomy by Paul Benson is considered one of the best investing books for beginners 2021.

By Jiro Nguyen

Jiro Nguyen is a highly driven and skilled business management professional. He has an MBA in economics and management and is a founder of Jns-millennial.