Think and Grow Rich Book Review

My own goals of property investing need the power of thought, without it there is no action. Books such as this are essential ingredients to nourish and plow though the hurtles ahead.

Napoleon Hill was the first man to make a documented study of rich successful people in book form, 500 of the most influential people of his time. Steel tycoon Andrew Carnegie asked the young boy Napoleon if he would consider devoting himself to the this task. It took 25 years of his life to compile all this data.

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Many of these successful people are legends in there own right. Thomas Edison, Alexander Graham Bell, Henry Ford, John D Rockefeller, Woodrow Wilson, Theodore Roosevelt to name a few.

"A real student will not merely read this book, he will absorb it's contents and make them his own" (P5) This from Dr Miller Reese Hutchinson, a long time associate of Thomas Edison.

Napoleons' mentor, Andrew Carnegie thought little of the school system, as it didn't prepare kids for "the business of earning a living or accumulating riches" (P12). Taking on many young men like Charles M Schwab and teaching a formula that this book is based on, and seeing there own fortunes accumulate only added to his resolve. His formula was broken down into key elements.

Desire, consuming, white heated, burning desire. Edwin C Barnes, a tramp that took the freight train to Orange had one dream, one obsession, to be a business partner of Thomas Edison. He confronted Thomas, and expressed his desire dressed as a vagabond. Edison hired him. 5 years Barnes spent employed, waiting, till his moment came. Edison had just invented a dictating machine. His salesmen were not impressed. Edwin piped up that he could sell the machine, and promptly got his chance. He was so successful, that a new slogan was born "Made by Edison and installed by Barnes" (P21).

"Desire for riches can be transmuted into its financial equivalent" (P 35) using six basic steps. One, Fix a definite amount of money to be made. Two, what are you willing to give for this. Three, create a definite date. Four, create a definite plan and put it into action, for myself I have borrowed an existing plan. Five, Write out the last four steps. Six, read it allowed twice a day. "As you read - see and feel and believe yourself already in possession of the money" (P36). It must be a burning desire, as it has to overcome setbacks, failures, and all the tricks that life will throw at you.

Faith is the fuel needed for desire to drive you to success. "Repetition of affirmation of orders to your subconscious mind is the only known method of voluntary development of the emotions of faith" (P53). Just as people can believe themselves doomed and convert that into physical terms, you can positively affect your physical circumstance for the better.

Self confidence is the start of your building blocks of an ordered life. The aid of Autosuggestion focuses your emotional thought by writing, memorizing, and repeating messages till they become faith. Mr Hill presents a self confidence formula that one should use with the principles of autosuggestion. One, demanding yourself to persist with continuous action till your dream is realized. Two, focus 30 minutes a day on dominating your thoughts with the person you intend to become. Three, demanding your self confidence shows itself in practical ways. Four, writing down a description of your definite goal and that you will never stop trying. Five, realize that wealth can only be enduring if it is also helping humanity in the process, just as it will help you. Six, sign your name to this, commit it to memory, with your repetitive reading it will sink into your sub-couscous and consequently become faith. "All impulses of thought have a tendency to clothe themselves in their physical equivalent" (P58).

Faith was wielded by Mahatma Gandhi. He had no battleships, soldiers, money, or even a home. Though he did have power. He planted his principles of "faith into two hundred million people" (p61), and with it did what England the greatest power of its day could not.

Auto suggestion is the process where we convince ourselves of a new mind set. In order to use it, you must "learn to reach your subconscious mind with thoughts, or spoken words which have been well emotionalized with BELIEF" (P72). Remember "Where failure is experienced, it is the individual, not the method which has failed" (P73). The point being you cant give up, creating these auto suggestions is your arsenal against giving up. Visualize your suggestion, concentrate on it. If it is a set amount of money, see it, feel it.

Knowledge is the fourth key element. Knowledge is "potential power" (P78). To convert it, one must know how to get it when you need it, organise it and make definite plans of action. Henry Ford was put in court at one time, and asked many general knowledge questions, in order to show how ignorant he was. With one particularly insulting question Henry answered "I can summon to my aid men who can answer any question I ask concerning the business to which I am devoting most of my efforts. Now, will you tell me why I should clutter up my mind with general knowledge, for the purpose of answering your questions, when I have men around me that can supply me with any knowledge I require?" (P79). Specialized knowledge is needed for the vehicle on which you can base your fortune. This is where the master mind group comes into play. The amazing thing is Specialized knowledge is cheap, look at the pay roll of any university. The idea is paramount, knowledge is just used to propel it.

Imagination, the fifth element. Now even more than the time of Napoleon Hill, is one of the greatest assets you can have. Is it any wonder with the world moving faster and faster, new inventions and ideas spring up like magic. Mr Hill describes synthetic and creative imagination. The first, arranging old ideas or plans into new combinations. The second, is truly creation. Both are stimulated with intense desire. "Ideas are the products of imagination" (p96).

Organized planning "the crystallization of desire into action" (P106), is the sixth element. It is broken down into four steps. One, find and ally yourself with people able to create and or carry out your plan, a master mind group. Two, figure out how you are going to compensate your group. Three, meet at least twice a week to perfect the plan. Four, maintain harmony within the group.

Planning means creating a near faultless plan. Take advantage of experience, education, imagination of other minds. Check your plans, with your master mind group. If your plan doesn't work make another, and go though the process again. This is the hardest step, as people drop their dreams in the face of failures. We see successful people for there ultimate successes, not for the full process of the defeats and success. "A quitter never wins-and-a winner never quits" (P 109).

Napoleon lists the 30 major reasons people fail. The most common being genetic problems, no defined purpose, no ambition, no self discipline, health problems, unfavorable childhood influences - like associations with criminals, procrastination, no sexual urge control, gambling, no defined decision, fear, wrong mate selection, guessing rather than thinking, & lack of capital. If you know the weaknesses in you, you can plan for them, bridge them or eliminate them.

Decisions is the seventh key element. In his analysis he found that all his selected millionaires reached decisions quickly, and changed decisions slowly. Sometimes these decisions take on great courage. In my own case I am entering into property investing when the market has been trading down in Sydney Australia for 4 years, and interest rates look as though they are about to climb. Yet my own analysis suggests that we are in for a boom time.

Persistence the eight key element. Persistence "will depend entirely upon the intensity of one's desire" (P160). Surround yourself with your master mind group will help this quality. I agree totally, I go to a property group every Monday night for exactly that reason. So how do you develop persistence? with Purpose, Plan, focus against negative influence, and associate with like minded people.

Power "organized and intelligently directed knowledge" (P 175), is the ninth element. The author states Infinite intelligence, accumulated knowledge (ie libraries, Internet etc), and experiment and research are powers sources. One of the principles of power is groups of people with a common purpose. They add together to form more than a group of individuals. The values of each catapults the others.

Sex transmutation is the tenth element, "switching of the mind from thoughts of physical expression to thoughts of some other nature" (P 182). Sexual desire, this most powerful of human desires can be harnessed and redirected into accumulation of riches among other things. As evidence Napoleon name many highly sexed individuals like George Washington, William Shakespeare, Oscar Wilde who have transmuted that energy into genius. The most interesting of his findings was that successful people seldom become so before the age of forty.

The subconscious mind is the eleventh element. The conscious mind works like a filing cabinet, where facts can be recalled at any time. Subconscious works on the "dominating desires which have been mixed with emotional feeling, such as faith" (P203). You can implant these desires as have been discussed via auto suggestion. Without the subconscious mind on the side of your plans, it is doubtful that you will have the ability to persist when hurtles approach.

The brain is considered the twelfth element. Mr Hill makes the claim that the brain is the receiving station for the 'infinite intelligence". Personally I cant help but think that the world around us is enough for the brain to pick up.

The sixth sense is the thirteen and last element. This is the chapter I least understand. Napoleon makes a fantasy council of great men from the past, to help change his own personality. As time went on, when in meeting with them they exhibited there own personalities. Eventually he started giving them all his questions from clients, and his own life rather than just trying to influence his personality.

The last chapter is Outwitting the ghosts of fear. These are the three enemies to his whole approach. Indecision, doubt and fear. "Indecision crystallizes into doubt, the two blend into fear" (P227). There is six fears poverty, criticism, ill health, loss of love of someone, old age, death. Fear is only a state of mind. Problem is "man's thought impulse begin immediately to translate themselves into their physical equivalent" (P 228). Napoleon then drills down into each of these fears, the most notable for me was fear of poverty. It halts action, imagination, self-reliance and encourages procrastination.

While not classed as a fear, Napoleon claims the key destructive trait is "susceptibility to negative influences" (P 249). He examines them from external sources and internal sources. With large checklists to see how many you suffer from. Once you know yourself, it is possible for you to take action against them.

What did I learn?

• Desire, nurture desire! fan its flames. Burn it into your subconscious with the use of faith and planning.
• Auto-suggestion, what a powerful tool. Use it, create your definite dreams with plans and emotionally embed them with affirmations.
• Just as auto suggestion can be a positive fears and negative influences can use it to neutralize your actions. Be aware of these fears control them, rather than them control you!
• Persistence, what an underrated trait. If you can plan and learn from mistakes and keep going how can you not succeed?
• Power "organized and intelligently directed knowledge", specialized knowledge is cheap, working with a group of like minded people with different abilities works! like the old adage the sum is greater than its parts.
• Imagination and planning, the necessary ingredients for success.
• Its no use only servicing your conscious mind with facts and figures, you must induce your subconscious mind to believe your definite dreams.

Rating this book is easy, 9/10. Its a classic, and with good reason. The millionaires that Napoleon interviews, analysis are equivalent to the billionaires of today.

Ian's Spin.

What a book! Are you serious about wealth? It all starts from a thought. This book delves into every possible detail about your thoughts. It presents with many examples of successful people. It is so jam packed with stories, and powerful techniques to keep you on track. No wonder it has been a best seller since its inception.

You need this book, luckily for you all you need do is download it for free from the left image.

Though I personally have this on my book shelf, and I wont be parted from it! Any life changing book needs to have its place there as far as I'm concerned, if your the same you can buy the paperback at Amazon (right image).

I am still trying to grasp what Napoleon was talking about with "The brain chapter" and to a lesser extent "The sixth sense" chapter. Have you got these concepts? If so please comment below.

Creating Wealth Book Review

Robert Allen is one of the key experts of American property investing.

His investment techniques spark allot of controversy, just look at John T Reeds site, but I consider him a genius, his writing style is simple and understandable.

Like many books these days Allen starts with the "Wealthy Mind-Set" (P11). He suggests you become programmed with the conversations around you. To loosen its grip start noticing the conversations around you. I can certainly relate, after coming back from a property investment meeting I talked to a relative about the guy teaching us having 80 properties. Her reaction was "Wow, think of all the land tax he pays!". Certainly not the reaction I expected. Another is "Replace luck thinking with probability thinking" (P 15).

Robert breaks down "The seven wealth principles" (P 22) . These involve taking notice of tax, appreciation, focusing your efforts, making offensive actions, investment stability, leverage & control. Well explained, this guy is the real deal.

The power of the book now appears, a 10 year plan. With an order at every stage. Pre-launch: time to learn like you have never learned before. Liftoff: buy a property a year at 10% off its real value. These are the years of sacrifice, keeping the focus. Pre-orbit: (year 5) Time for insurance incase of mishap. Year 10, Jettison some debt, diversify, and enjoy!

Allen provides a number of methods for buying property to work the plan. the one I like is the buy low and don't sell. My own plans is to buy low add value though renovation sell two to three near the end of the cycle. I find myself in the enviable position of waiting for a big property wave that my research suggests Sydney (Australia), is about to experience. I'm planning to stack my properties and ride the wave.

Now Robert tantalizes us with some creative financing. This is discussed more in his amazing book Nothing Down for the 2000s. Much of this is written for the American property market, though I know of people that have converted some of this successfully in the Australian market.

Tax, diversification with other forms of investment, and property management is devoted to all but the last chapters. Oh hum, yet essential.

Lastly Allen talks of the need for the "right kind of education" (P 234). Which is learning from people that have already done it. With the ending of the book, he stresses that "Wealth is Thoughts, not things" (P239). If wiped out, Armed with the right knowledge Robert feels it would take him no time to make his way up the ladder.

This book is a must have. 9/10. Have it on your shelf within arms reach of when you need it.

What did I get out of this?

• Allot of sensible reasons of why property is a good investment or wealth building vehicle. When the doubts come, and they will if your like me, this is the stuff that will put you back on track.
• A 10 year plan! with multiple entry and exit strategies. No one can work without a plan!
• Several methods of buying property.
• Creative financing methods.
• The realization that this applied knowledge used diligently separates the successful property investor from the unsuccessful.

Ian's Spin

There are certain books that are essential reading for property investing. I think this is one of them. Clever, informative, packed with a well thought out plan with multiple entry and exit strategies. The only thing you could complain about is that it is so packed it might overwhelm you with options.

The book is a must, as is his other best seller Nothing down for the 2000s.

The Cashflow Quadrant Book Review

This sequel to Rich Dad Poor Dad, provides another step in the development of a business/property investing mind set.

"Which quadrant are you in?" (P1). Kiyosaki creates four conceptual quadrants to reflect a persons working life. Employee, Self Employed, Business Owner & Investor. According to Robert, he created this book for the person that was trying to move to another quadrant.

The author argues that people tend to move toward a particular quadrant depending on there core values. A doctor could be an employee at a hospital, set up a private practice, own a medical clinic with many doctors, or even invest monies in stocks or bonds. "Its not so much what we do, but more how we generate income" (P10).

Our educational system according to Kiyosaki trains up to think like employees. Which I would agree with. My own fear bounded up with possible failure keeps me firmly in my job.

Employees value security over financial risk. Self Employed tend to be perfectionist. Business owners design more business systems of people. Finally Investors make money by using other peoples money or there own.

Each quadrant has its own terminology and core beliefs. If you wish to jump to another quadrant then it requires you to move mentally.

Kiyosaki divides these four quadrants into two basic areas. The work/time dependant jobs and the financial rewarding and time free side. Kiyosaki obviously favors the business quadrant. Seeing both Multi-level marketing and franchises as good introductions. He proposes new mind sets into the mix, the most powerful being "you cannot have success without failure. So unsuccessful people are the people that never fail" or "success is a poor teacher" (P71), others include seeing the potential of a new business system combined with an idea, business structures that support investment or business have many more tax benefits, or using other peoples money.

I am changing my own mindset from a normal employee to a realestate investor. I have tried a number of times to break the barrier from my job to business without success. My failures weren't the problem, the problem was I couldn't continue to fail in order to learn and succeed. So I am the first to agree that the mind set and due diligence is everything. With that in mind I give this book an 8/10.

Like the first book, this is also light on a detailed plan. My own situation as an employee diving into realestate investing. Now Robert would put me as an employee/investor. Yet with the properties I will be renovating with hired help and my own hands. So I don't see the property buying I am doing as purely investing. I don't know if it fits in the quadrant? None the less the quadrants is a great theory that comes closer to realizing who you and are what you strive to be if you want to change your working life.

What did I get out of this?

• Employees have a mindset of security and risk free finances, which is against my property investment philosophy of needing lots of borrowed money or "Good Debt".
• Investors think in "Return On Investment", "Acceptable Risk", "Due-diligence", and researching rather than buying emotionally.
• Failure is needed for learning success, as bitter as that statement is, there is no substitute. So get thicker skin.
• Go over the numbers to any investment you are considering. If the numbers aren't there it doesn't matter how pretty the property is.
• Know the difference between facts and opinions, as an investor you have to think differently about property than a normal owner occupier.

Ian's Spin

If you expect to change quadrants these type of books are essential to break the hold of past conditioning. Don't just read the book, absorb the message. Although this isn't a property book, without the mindset change you will not be ready for the road ahead.

Might I also suggest trying games like Cashflow, also from Robert Kiyosaki. They provide education to both your conscious and sub-conscious. If your on a journey like me you need all the help you can get.

Get this book!

Rich Dad Poor Dad Book Review

Well, this my friend is a life changing book. If like me, property investing is what you want, you have to develop the mind set, the motivation and the lingo.

The first time I read it was over 5 years ago, at the time it didn't seem that great. However with the addition of years, and my own cancer episode, it seems to have sparked a much greater appreciation, or perhaps understanding.

It tells of Kiyosaki's own poor father and his friends multi-millionaire dad. Both the men had powerful impacts on Robert's life, and this is really brought out by the thought differences between the two fathers. While I certainly don't know if 'Rich Dad' existed or for instance was a combination of people and Kiyosaki's own thoughts, it certainly makes compelling reading.

So whats so good? it's really a case of perspective. While Robert's own father was always in the unenviable position of letting the lack of money dictate his future, his rich dad actively sought to build an empire, a system, a way out of the rat race.

Rich Dad takes on the task of empowering the boys to bring out there creative ideas. Rather than talk he preferred to train via experience. One of the more notable quotes was "The poor and middle class work for money. The rich have money work for them." (P30). This is done via building your own system to run a business, or assets, so that money comes in whether your there or not.

Financial understanding is the first step into this world. Knowing the difference between an asset and a liability. Kiyosaki has a new take on the meaning of asset, he puts forward that an asset has to generate income. Your home would traditionally be considered an asset, Robert disagrees. He makes many diagrams in his attempts to explain finances, particularly income and expenses or assets and liabilities.

"Work to learn - don't work for money" (P117). Another one of the quotes of this book. This could well be good advice, but being an old dog of 41, I really think I wont be pulling the pug of my job until I can equal my wage.

"Master a formula and then learn a new one" (P154). This theme is only taken over a page or so, though I like its sound. Personally I like the idea of mastering a formula and then tweaking it different ways to see if you can get it working better, though I am no millionaire... yet. The main mentor Dave Dorian in my realestate group very much believes in this. He preaches this religiously, though the trick is to find qualified mentors to teach you these, be them in book or other form.

"The rich invent money" (P97) I prefer a more specific quote like "the rich invest money", Now this is my cup of tea. At the time of writing I am waiting for the Sydney (Australia - Yes the land of skippy) realestate market to pick up. I'm planning to stack a host of properties bought at least 10% under value and wait for the wave to come in, much like a surfboarder waiting for the big one. Then I will drop the shakes of my current job and annoy my friends with more jewelery than Mr T. Unfortunately this wont happen over night, but it will happen.

The criticism I have of the book is the lack of a plan. My favorite books have this as a key feature. I'm sure Robert would argue that he is really trying to develop a mind set.

What did I get out of this? The most simple of things.

• If you expect to rise above the rat race, then you have to act.
• Sacrifice now and reap the rewards later.
• Change that damn mind set. Thinking small will keep you right there.
• Time to build assets. Or as I like to think magically make money.
• Rather than be destroyed by your mistakes, learn and keep going! Life is all about making mistakes, the only question is how bad do you want to succeed?
• Change that mindset! absorb this book.

My first Rating! 7/10. Particularly good if you haven't been exposed to this sort of thing before. Not bad Kysosaki, keep up the good work.

Ian's Spin

I have (before my cancer episode) tried a number of ways to break free of the rat race, though now that I think about it, it has never been with an absolute plan, nore with a compelling belief that I can do it. I suppose what I'm trying to say is I have failed, failed and failed. Now the impetus has been embedded on my spirit. Books like this one produce the oil to keep me burning for success.

As a side note I often play Robert Kiyosaki's cashflow game. Its really a teaching aid game, similar to monopoly to educate you on the rich mentality. If you decide to play it, do it a number of times, as the idea is to push both your intellectual and your emotional understanding.

Make sure you have a look at the review of the rich dad sequel The Cashflow Quadrant.

If you don't have the book, just click the image below to be transported directly to the Rich Dad site. If your serious about changing your mind set this book is for you.