A&B #94

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👋 Hey everyone,

Here are a few popular posts you may have missed:

• 20 Books every college student should read.

• 10 Free newsletters that will teach you about business.

• 20 Book recommendations from Elon Musk, Jeff Bezos, and others.

📚 Want to learn ALL of my reading tips in 1 month?

I'm updating my reading course and planning to launch the second cohort later this summer.

In it you'll learn how to:

• Find amazing books

• Build a lasting reading habit

• Make time to read more books

• Read faster and more efficiently

• Take better notes while reading

And much more!

It will be a 4-week course with 2 live classes each week. You'll learn directly from me and there will also be a community where you can meet, talk, and network with fellow students.

The course will cost $299 but if you reply "INTERESTED" to this email I'll save your email and you'll have the option of getting the course for $249.I plan to limit the class to 50 students so let me know ASAP!

📔 Book Summary:

This week's book is Just Keep Buying by Nick Maggiulli.This book was recommended by both James Clear and Morgan Housel so I had to check it out. If you're looking for a book similar to The Psychology of Money but with more data, this is the book for you. Here are a few more short lessons from the book:1) The Biggest Lie In Personal FinanceThe biggest lie in personal finance is that you can be rich if you just cut your spending.Financial gurus try to tell people that if they just stopped spending $5 a day on coffee, they could become millionaires. Here are a few problems with that advice: They assume earning 12% returns when the historical average is closer to 8-10%. They assume the person will hold a 100% stock portfolio instead of a diversified portfolio. They assume the person will keep investing for decades and never sell any of it until they retire.And lastly, all of the gurus that share this advice didn't get rich this way. They became rich through selling books, courses, etc.Yes, you do want to cut spending if you're living an extravagant lifestyle with unnecessary luxuries, but there's no need to cut out your daily bagel or coffee order.Instead, the most consistent way to get rich is to grow your income and invest in income-producing assets (stocks, real estate, etc.). 2) How To Spend Money Guilt-FreeDo you ever feel guilty about spending money? You think to yourself, "Oh I could invest this money instead of buying these new shoes or coat"?Here's a simple tip from Nick that will help you–it's called the 2x Rule: Anytime you want to splurge on something, take the same amount of money and invest it as well.So if you're feeling guilty about buying a new suit work that cost $400, take that same amount and invest it into your stock portfolio. Following this simple tip will help you stop feeling guilty about enjoying your money because you know you're also investing in your future at the same time.Also, if you're super-rich or feeling in a good mood, you can use the 2x Rule to donate the money to charity. So if you're feeling bad about buying a Rolex for $20,000, donate another $20k to your favorite charity.3) Don't Buy Individual StocksHere's a scary stat: 75% of professional money managers working full-time with teams of analysts don't outperform the market.Here's an even scarier stat: Research has shown that 4% of stocks from 1926 to 2016 created ALL the excess return for stocks. So ask yourself, do you think you can find that 4% of stocks that will outperform the other 96%? Maybe. But the odds aren't in your favor. Even skilled professional investors have a hard time beating the market. So what can you do instead? Simple–buy an index fund or ETF. This is usually a far better bet and you're likely to end up with more money and less stress following this path than from trying to pick big winners among individual stocks.Disclaimer: I'm not a financial advisor nor is any of this financial advice. Do your own research and talk to a professional.

✅ Actionable Advice: 

1) Stop trying to cut out every small purchase:

• Focusing on cutting out every small purchase isn't the secret to becoming wealthy.

• Instead, focus on increasing your income and investing it in stocks, real estate, etc.

2) Follow the 2x Rule:

• Every time you make a large purchase (ex: over $400), take that same amount and invest it into your portfolio.

• This way you'll be able to enjoy your money today while also investing in your future.

3) Buy a basket of stocks instead of individual ones:

• 4% of stocks are responsible for all of the excess returns

• Buy an index fund or ETF and chances are you'll get better returns and

🎧 Podcast Update:

I'm still working on editing my podcast with Tiago Forte, in the meantime here are 3 awesome podcasts you probably missed:

• Bob Burg: Developing A Go-Giver Mindset & More Secrets To Success

• John David Mann: How To Write Good (Or At Least, Gooder)

• James Altucher: How To Choose Yourself & Live Your Dreams

📖 Reading Lesson:If you're empty with ideas, read.If you're filled with ideas, write.(share here)

⭐️ Weekly Quote:20 Quotes that will make you happier, healthier, and wealthier.

Thank you for your support everyone, I'll see you next Sunday!Read on,Alex W.