Why You Need To Study Money

By: Dan Kennedy on: July 12th, 2010 4 Comments

Successful people have become, by necessity, great students of money and finance. There used to be a time where you didn’t have to be a great student of money management, unless you were way up there in the income brackets, because there weren’t a lot of money options available to you in the first place.

Pretty much everybody used a savings account if they used anything and that is about it. Well today you walk into your local savings and loan and they’ve got a menu that is more complex than the airline fair schedules to get from point ‘A’ to point ‘B.’ You got all sorts of options of what to do with your money don’t you? Just in selection of checking accounts you’ve got more options than you can possibly deal with.

Making money is such an important part of our total approach to success we have to become great students of finance. Not only do we have to become great students of money but of money management and investment strategies. And I believe that it’s important to be more advanced as a student of that than you are even prepared to use at this moment.

I think that’s another way to apply the principle of creating a vacuum. I began to study the stock market and penny stocks and mutual funds and all that several years before I was prepared to spend any money on it. I got the knowledge even before I needed it and I think that’s important. I think you need to be creating the ability and the money to use it will follow.

A marvelous book I strongly recommend teaches you the philosophy, the philosophical importance of getting involved in all of this is called, “The Richest Man in Babylon.” If you haven’t read it you certainly should.

There is also a book called, “The Only Investment Guide You Will Ever Need.” It is a pompous braggadocio title that is not true but it is still an excellent book. It is written by a guy by the name of Andrew Tobias and he is an investment writer has written for Esquire Magazine, for Playboy magazine, and occasionally for Fortune Magazine. He’s a very good investment writer and his book, “The Only Investment Guide You Will Ever Need,” literally does a good job of simplifying every type of investment alternative that is available to you.

You should also be reading Money Magazine and the Wall Street Journal. That does not necessarily mean you need to read them like someone who is a heavy investor. For example, I’ll tell you how I read the Wall Street Journal. They stack up in my office for as long as three weeks at a time. I don’t look at them everyday because I’m not that active in the type of investments that require daily monitoring. I don’t get it for that purpose.

I read it for exactly what we’re talking about today – the stories and the articles about companies and CEO’s and leaders and new young companies that are on the way up and what are the commonalities behind their success stories. What marketing method is this company using in this industry that we can use over here in our business? And so for that purpose it’s well worth reading.

You’ll also begin to learn a lot about what to do with the millions when you get them. So you don’t have to read it everyday like somebody who’s active in the stock market but you should subscribe to it and you should read it.

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    Dan Kennedy is internationally recognized as the 'Millionaire Maker,' helping people in just about every category of business turn their ideas into fortunes. Dan's "No B.S." approach is refreshing amidst a world of small business marketing hype and enriches those who act on his advice. For more money-making marketing tips, tactics and strategies, go to www.GKIC.com

    4 Responses

    1. The best part about waiting 2-3 weeks before reading the Journal that it’s easy to see what is novel ideas and what is “yesterdays news…”

      Fantastic Post!

    2. Andy Wallace says:

      Bill, a few other books that people need to read:
      1. One Up on Wall Street, by Peter Lynch. Mr. Lynch was the manager of the Fidelity Magellan fund, which averaged over 20% per year in the years that he managed it. A great book for beginners.
      2. The Intelligent Investor, by Benjamin Graham. Prof. Graham was a money manager, professor at Columbia University, and is known as mentor to Warren Buffett. This book is much more technical than Lynch’s book, but is the one book to read if you will only read one book on investing. His most important sentiment is to sell when everyone is buying, and buy when every one is selling. Good advice.

    3. Rob Anspach says:

      It’s always good before jumping in the pool to test the water. The better prepared you are the better chance of success.

    4. ginson says:

      My name is saju, my brother name is sebastain he could not condinue study two people one of them study B.sc maths 3rd year, another one is Ginson he want to study for higer education of diploma in mechanical , he compleated 2nd P.U and he joining me to work on ern little money for help his father i will help them but we can”t fully pls advice any glad nes he is now will come 18 year pls… thanks ….GOD BLESS YOU

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