The World's Best Book Summaries
Do you have a plan to pay for your child’s education? What option is best? Paying for your child’s education likely will require advance planning and many years of investment. In The Wealthy Barber, David Chilton recommends having a mutual fund for this purpose. He discusses the advantages and the timing for when to redeem the funds. Read more for advice on how to save money for college.
What is rational behavior in economics? How accurate is this assumption that humans are inherently rational agents seeking to maximize their economic utility at the expense of everything else? In economics, human beings are seen as largely rational agents. The rational economic man cares only about increasing his material wealth and will always follow incentives to do so. According to Kate Raworth, this portrait of humankind is grossly inaccurate. In her book Doughnut Economics, she calls into question the power of extrinsic incentives in driving human behavior. Here’s why the assumption of rational behavior is ultimately flawed.
Do you spend more than you make? How much credit card debt do you carry? Do you have an emergency fund? A great way to save money is to live within your means. David Chilton, the author of The Wealthy Barber, says that living within your means doesn’t have to mean careful budgeting. If you implement big-picture financial planning, day-to-day spending choices like whether you buy coffee or order take-out don’t matter too much. Keep reading for advice on how to live within your means.
What kind of investments provide tax breaks? Should you hire a tax consultant? What kind of loan can lower your tax burden? You might be paying more taxes than you need to. In The Wealthy Barber, David Chilton discusses ways to save money. Minimizing your tax bill is one of them. He shares recommendations for reducing how much you pay in taxes each year. Keep reading for advice on how to pay less in taxes.
Can income inequality be solved? What can be done to bridge the global divide between the rich and the poor? Income inequality is a global problem—it plagues all countries to some extent. A small minority of the world’s population has amassed vast fortunes, while billions of people remain mired in extreme poverty. But hope remains. In her book Doughnut Economics, Kate Raworth proposes four income inequality solutions that can reduce the gap between the rich and the poor. Let’s take a look at Raworth’s solutions for income inequality.
How is The Wealthy Barber different from other personal finance books? Who’s the barber, and what does he teach? The Wealthy Barber by David Chilton is a bestselling guide to becoming financially successful by following a handful of simple, easy-to-understand principles. These principles are illustrated using a fictional story about a teacher, an auto plant worker, and a small business owner who seek financial guidance from a barber who’s become wealthy by following the lessons he imparts. Here’s our overview of the book.
Should you buy a house? What are the advantages? Are there disadvantages? Even if purchasing a home is within your budget, that doesn’t mean you should necessarily do it. If you choose to rent rather than own, investing the money you save by renting might even be a better investment than owning a home. In The Wealthy Barber, David Chilton writes that home ownership has its advantages and disadvantages. Keep reading for Chilton’s discussion of the pros and cons of buying a house.
Is economic growth destroying the planet? Can long-term economic growth be sustainable? According to Kate Raworth, we have pushed economic growth so far that some bad environmental outcomes may now be unavoidable. If we don’t act now, grave consequences are in order. Here’s how the overwhelming focus on growth endangers the health of our economy and the planet.
Are you saving for retirement? Do you know what you can count on after you retire? What’s your plan? David Chilton says that part of your overall financial plan should be saving for retirement. He provides four reasons why retirement planning is important and discusses four types of retirement plans: 401(k), IRA, Roth IRA, and Keogh Plan. Keep reading to learn more about smart retirement planning.
Why do poor people stay poor? How does the financial industry trap people in poverty? There are several factors that keep people in the poverty trap. One of them is the poor’s inability to access financial services. Wealthy people benefit from financial services, such as comprehensive insurance and easy-to-access credit. Despite the fact that the poor also need these services, businesses rarely provide them. Here’s why the poor have difficulty making use of financial services and how it perpetuates the cycle of poverty.