It has been a long time since I have read a book about personal finance. I think I got jaded as it felt like I was reading the same old information over and over again. Every book promised a way to attain financial freedom; some even said you should only have to work a few hours a week. Well, I recently received an email with an electronic version of Jack Bosch’s book entitled “Forever Cash – Break the Earn-Spend Cycle, Take Charge of Your Life, Build Everlasting WEALTH”. Here are some thoughts on this book:
What is “Forever Cash”?
The book is well-written. It talks about how it is possible to find a way to make “forever cash” – which is the author’s term for making cash flow that is indefinite. To quote Jack: “Forever Cash is cash for which you work once and get paid again and again and again … forever.”
According to Jack, “This book is not about getting rich. It is about you taking your life into your own hands and doing what needs to be done to make sure you and your family are safe. It’s time to rise!” The book is definitely motivating and it makes you think, too. It’s a good read if you are looking for motivation and maybe some ideas as to how to get started.
Keeping it Real
What I enjoyed about the book is that it seemed more real than many other personal finance books I’ve read. Unlike many other financial books, this one suggests that we don’t have to give up all the extras. Instead, we are encouraged to give up the things that we spend money on that aren’t meaningful to us and that don’t benefit us financially. The author says to: “Stop throwing your money away on things that don’t bring you forward at all”.
As well, the author is not trying to tell us we need to quit our day jobs, but instead to keep working our day jobs until we find a suitable way to earn passive income that can replace and exceed our current employment income.
What Does it Take to Get Rich?
According to Jack, “it doesn’t even take much money to create lasting wealth, but it requires seeing the world from a different angle and in a different light.” Most people think it takes money to make money. Jack suggests that all you need to do is work towards getting out of your financial hole and educate yourself until you find that thing or those things that will allow to really start making money.
What Are Some Ways to Earn Extra Money?
Tips for finding ways to earn extra money include: being a problem solver, being a contrarian, finding part time work, creating income via a home based business, and making use of the Internet. Jack talks about the process you can follow to earn extra money. He terms it the “Wealth Wheel” and says it will allow you to create long-lasting wealth. I won’t discuss it in detail here, but you can check it out for yourself if you are interested.
Good Assets & Bad Assets
The book differentiates between good assets and bad assets. Things that most people would think of as “good” like your home or your car are not actually considered good in Jack’s books. An asset is only good if it makes you a profit. So, if you own your home outright and rent out your basement and collect rent from tenants, then, and only then would your home we considered a good asset. In fact, in that instance, Jack would say your house has become a “great” asset.
How do I Make the Best Financial Decisions?
Jack says, “With each financial decision I make, I ask myself: Will it put money into my pocket or will it take money out of it? This reasoning is not taught in schools or in financial magazines, but it is the key to understanding the difference between good debt and bad debt.”
How do the Rich Think?
According to Jack, “instead of just asking whether they want a certain toy, or whether they can afford to do something, they ask themselves what effect this purchase or investment will have on their future. And if they see that it will not help them, or that it will even harm them, then they won’t spend the money. The truly wealthy people of the world have learned the secret of delayed gratification.” So, as you can see, “The rich recognize the value of every single dollar spent.”
What’s Your Reason to Change?
If you don’t have a reason to want to make financial changes in your life, then your attempts will result in failure. According to Jack, “Everyone needs a Reason Why they should change what they are doing right now.” You need to think hard about why you might want to change the way you are currently handling your personal finances.
Some Interesting Quotes
“Making money to spend money is the path to financial ruin.”
“Your job has nothing to do with how financially successful you are in life.”
“What you have to realize is that your job alone will not accomplish retiring young, quitting your job, and having a lot of money. You will need to look beyond your job for additional ways to make money and particularly for your Forever Cash investments.”
As I said earlier, I like this book. It’s a good read. I will leave you with one last quote from the book:
“You can’t afford to be financially ignorant if you ever want to live in comfort, without any financial worries. Financial education is what makes the difference between struggling each day and knowing that you have enough, even more than enough, to enjoy life. Without financial education and without learning the methods and criteria to tell a good investment from a bad one, you won’t know when you are being taken and when to act on a solid opportunity.”