Book Review: Millionaire Teacher: The Nine Rules of Wealth You Should Have Learned in School by Andrew Hallam

I read the book Millionaire Teacher: The Nine Rules of Wealth You Should Have Learned in School by Andrew Hallam a couple of months ago.

It was a rather interesting read, sentiments shared by 92 other customers on the Amazon website, with an average rating of 4.5 stars.

You can build financial security by using the nine rules outlined in this book: 

1. Spend like a millionaire (or less) if you want to become rich. 

(I agree. Many books/websites on financial management advocate spending within your means, or delayed gratification i.e. to use the money on income generation, instead of shopping or buying a flashy new car for example.) 

2. Start investing as early as possible—after paying off credit card debt and any other high-interest loans. 

(I agree. Rules of compounding work miracles. The earlier you start, the better it is, cos it allows more time for $ to grow.) 

3. Invest in low-cost index funds instead of actively managed funds. Nobody can consistently pick “winning” actively managed funds ahead of time. 

(Hmm, this one I am not sure as I do not have experience in buying funds. However, if you are a 'lazy, busy or risk adverse' investor, you should look at exchange traded funds instead of doing your own stock picking, since studies have shown that exchange traded funds grow despite downturns or market fluctuations, given a sufficient timeframe of 5-10 years.)

4. Understand stock market history and psychology so you don’t fall victim to the craziness that infects every investing generation (often more than once). 

(I agree. Read as widely and as much as you can. Do research into the companies that you are investing in - know what you are buying and not jump into the next (over)hyped stock.)

5. Learn to build a complete, balanced portfolio with stock and bond index funds that will easily beat most of the pros. 

(I agree. It is important to know your investment philosophy and your appetite for risk. I have a mix of insurance, REITs and growth stocks, and depending on the market conditions, I balance my portfolio accordingly. I am interested to know more about bonds and gold/silver investment. Still learning though.) 

6. Create indexed accounts no matter where you live. 

(I am not too sure what this means. Need to find out more.)

7. Learn to fight an adviser’s sales rhetoric. 

(I agree. You need to be responsible for your $ and do your own thorough research, instead of relying on another person's advice.)

8. Avoid investment schemes and scams that tickle your greed button. 

(Same as Point 7 above. If something looks too good to be true, it probably is.)

9. If you must buy common stocks, do it with a small percentage of your portfolio and pick a mentor such as Warren Buffett.

(I think that value investing knowledge armed with some technical analysis works best. Value investing to know if the company is doing well, and technical analysis to know the best entry points.)

You can read the reviews from others and/or get the book from Amazon here:-
Millionaire Teacher: The Nine Rules of Wealth You Should Have Learned in School

Kindle version is also available: Millionaire Teacher: The Nine Rules of Wealth You Should Have Learned in School

Disclaimer: The ideas expressed in this blog should not be construed as an enticement to buy or sell the securities, commodities or assets mentioned. The accuracy or completeness of the information provided cannot be guaranteed. Readers should carry out independent verification of information provided. No warranty whatsoever is given and no liability whatsoever is accepted for any loss howsoever arising whether directly or indirectly as a result of actions taken based on ideas and information found in this blog.