No Gimmicks, Luck, or Trust Fund Required – Kristy Shen;Bryce Leung

Everybody wants to be a Millionaire. The FIRE (financial independence and retire early) movement has popularized the concept that once you become millionaire you can retire early. But is this true anymore? This book reminded me the book Early Retirement Extreme method.

The authors tried extreme frugality to achieve their millionaire status. But that can be found in many book but what makes this book distinct is that they have provided a very heart touching journey from poverty to riches. Their personal story touched me and I like their journey. The second thing I like about them is that they do not mock common salary man like The Millionaire Fast Lane author but provide practical solution to people who work from 9 to 5.

The words of wisdom from this book are:

  • Money is the most important thing in the world. Money is worth sacrificing for. Money is even worth bleeding for.
  • A great book should expand your horizons, not just confirm your biases.

If you understand money, life is incredibly easy. If you don’t understand money, life is incredibly hard. Choose easy, I say. —JL Collins

  • At the end of the day, it isn’t about money, it’s about time—and how to use it wisely to live the best life possible.
  • Business books love to dump on the Scarcity Mind-set, saying that it “holds you back.” The idea is that if you focus on what you don’t have rather than what you could have, you tend not to recognize the opportunities right in front of you.
  • Poverty taught me four vital skills that I still use today—skills that I like to call CRAP: creativity, resilience, adaptability, and perseverance (the acronym being a fitting metaphor because of all the crap I had to wade through to get them).
  • Culturally, we expect our work to be engaging, give us autonomy, pay us fairly, let us collaborate with people we like—and be fulfilling.
  • But the idea that each of these conditions can be met, forever and ever, is false. You can’t control how much you get paid, how many jobs exist in a certain field, how great your coworkers are, or whether the job will still exist a year from now.
  • Doing what you love and hoping for money to follow is risky. Follow the money first, and you can do what you love later.
  • Sometimes your entire life turns upside down through no fault of your own, and you have to learn how to tough it out and survive. No one is coming to save you.
  • If you believe that you’re special, and all you have to do is find your singular passion and turn it into a perfect job, that’s a recipe for disaster. The reality is that the world owes you nothing. You only become “special” by developing skills that are in demand, which takes focus, grit, and long-term work. Other people can help along the way, but in the end, we have to save ourselves.
  • The Scarcity Mind-set teaches us that money is precious.
  • The Entitlement Mind-set enables us to kick the can of personal responsibility down the road. But we all need to learn to protect ourselves from those scary inevitabilities like layoffs and outsourcing. We need to learn how to save ourselves. To do that, we build our own safety net.
  • To get a more accurate estimate of your housing costs, use the Rule of 150: Take your monthly mortgage payment and multiply it by 150 percent. If that Rule of 150 monthly cost is higher than rent, rent. Otherwise, buy. Always “math shit up” before you buy.
  • Money is worth bleeding for, but it’s not worth dying for.
  • The Scarcity Mind-set teaches you to sacrifice your time and your health for money, because money is life. And that works when all you care about is survival. But the problem with the Scarcity Mind-set is that it doesn’t have an end goal.
  • The Scarcity Mind-set trades life energy for survival.
  • The Hoarding Mind-set trades life energy for nothing. I had seen it almost claim one victim, and I didn’t want it to claim me as well.
  • The Scarcity Mind-set becomes a problem when you’re no longer in poverty. Now it’s a Hoarding Mind-set, which causes you to be needlessly fearful forever.
  • Inflation is, in a nutshell, how much your cost of living increases from year to year.
  • Wading through the mud of online vitriol taught us that when people get angry about your choices, it isn’t about you. It’s about them.
  • The Freedom Mind-set is how you flip your thinking into realizing that money can buy you time.

I enjoyed reading this book and I do think that it is worth reading once.