The 10 Commandments for Individual Investors

Book Review: Winning the Loser’s Game: Timeless Strategies for Successful Investing by Charles D. Ellis

I recently completed one of the greatest books on investing, written by one of the most influential investors of all time. That book is Winning the Loser’s Game: Timeless Strategies for Successful Investing by Charles D. Ellis.

If you do a search for the best books on investing, Ellis’ Winning the Loser’s Game is always in the top 5. It’s a great, timeless classic on personal investing that is simple and concise. Ellis tells great, and often very funny, stories to convey his points, as well as compelling data to support his claims.

Charley Ellis lays out the most important investment lessons for individual investors. Those looking to save, invest and retire wealthy through diligent saving and investing in low cost index funds must read this book. He lays out the easy and successful ways to get rich (slowly) through proper investing. It is required reading for all my Millennial personal finance readers. Regardless of your investment knowledge, the sound money management skills laid out in this book are a must read for all audiences.

10 Commandments for Investors

One of my favorite parts of Winning the Loser’s Game: Timeless Strategies for Successful Investing by Charles D. Ellis is his 10 commandments for individual investors. Below are the 10 commandments for investors, which is a great guide for Millennial investors.

1) Save, save, save. Invest and save for your future happiness and financial security, as well as an education for your kids. This is the foundation of financial freedom and one day becoming financially independent to do whatever you want, whenever you want.

2) Stop speculating. The more you read up on investing the more you hear every reputable financial advisor insisting you only invest in low-cost index funds. Well some people just have to “play the market” to satisfy and emotional itch. If you do, try to limit yourself to 5% or less of your portfolio and be sure to track your performance carefully. You may stop “playing the market” faster than you think.

3) Don’t invest for tax purposes. Don’t believe in tax shelters or tax-loss harvesting. Don’t do anything in investing primarily for tax reasons. You absolutely should invest in a Roth IRA (or Traditional, but I strongly prefer Roth) and maximize contributions to your tax-sheltered 401(k) every single year. But, outside of these accounts, don’t overthink it.




4) Don’t view your home as an investment. A home is not a good financial investment and never was. But a home can certainly be a fine investment in your family’s future and happiness. Your goal should be buy a modest home that you can afford and that your family will love. Then, pay the mortgage off and live there forever. That’s when your house becomes a good investment.

5) Just say “no” to commodities. Dealing with commodities (oil, gold, silver, corn, livestock, etc.) is really only price conjecture. It is not investing because there is no economic efficiency.

6) Be very leery of stockbrokers and mutual fund salespeople. Their job is not to make you money, but to make money off you. Now not all stockbrokers and mutual fund salespeople are bad, but you must be very careful and watchful when dealing with one.

7) Don’t invest in new or “interesting” investments. Stick to the basics, total stock indices, REITs, emerging markets, etc.

8) Don’t invest in bonds just because you heard they are conservative and safe. Bond prices fluctuate nearly as much as stock prices do. And bonds are terrible against one major risk – inflation.

9) Come up with goals and write them down. And then stick to them. Write down your long-term investing goals (retirement and college), home payoff, retirement income and net worth goals. It’s best to review these goals annually to ensure you are on track.

10) Don’t trust your feelings. When you feel overjoyed, you’re probably in for a bruising. When you feel disenchanted, remember that it’s darkest just before dawn, so don’t take any action. Less is better when it comes to investment activity. Set it and forget, and keep investing.




Book Review: Awaken the Giant Within by Tony Robbins

Most people are familiar with Tony Robbins and his ‘90s “self-help” infomercials where his motto for all attendees was “personal power”. Now, my Millennial generation may not be quite as familiar with Tony Robbins since most of us were very young in the ‘90s. But nowadays Tony Robbins is everywhere, helping everyone. He is famous for helping Tiger Woods, Bill Clinton and many fortune 500 CEO’s.

I recently read his 1992 classic Awaken the Giant Within: How to Take Immediate Control of Your Mental, Emotional, Physical and Financial Destiny! The book is great and I want to first start off by saying Tony Robbins books are very motivational and based on self-improvement, which truly benefits anyone and everyone. It is not just for those struggling with demons but those looking to improve. We should all strive to constantly improve ourselves and our lives, personally, professionally, and financially. Robbins’ book does just that and so does Awaken the Giant Within.

Tony Robbin’s has a reputation as a successful businessman who teaches people how to master their emotions. He is a leader in peak performance and an expert in the psychology of change. In his early life, his mother was an alcoholic who has had several husbands, while his father was absent in his life. He’s like many of us, but decided without any formal education in psychology to begin his own work as a self-help coach.




Within this book he emphasizes how beliefs, values, and your rules affect your behaviors. He links pain and pleasure as the reason why people make decisions. For example, if an individual is broke and struggling with debt, but links a lot more pleasure to shopping and going out versus saving and recovering financially, then they aren’t making a change to their behavior. Tony Robbins gives step by step tips on how to associate pain to your bad habits so that you can ultimately stop those decisions or bad habits and make better life choices.

Tony also explains the importance of asking your self-quality questions. He regularly uses “Seek and you shall find” and describes how your mind will find whatever you tell it to seek. If you ask lousy questions, you will get lousy answers. This book will give you a fresh perspective on your life and the factors that contribute to why you are where you are.


Book Review: Shoe Dog by Phil Knight

Shoe Dog: A Memoir by the Creator of Nike, is a fascinatingly candid chronicle from the Nike founder, Phil Knight, who reveals the inside story of Nike’s early start-up days in the early 60’s, through its initial public offering (IPO) in 1980. Today everyone knows and owns at least several Nike products, as Nike is one of the world’s most iconic brands.

The Nike Story Begins in 1963

For the average sports fan, which I am much more than, it’s no secret that Phil Knight is a University of Oregon alum. He is obviously their main booster when it comes to funding sports and even academics and his family name is over everything at that school. However, it was new for me to find out that Knight was a competitor runner and actually ran track at Oregon, and that “running” is the genesis of Nike.

After graduating with a degree in Accounting from Oregon Knight then received his MBA from Stanford business school. Post-graduation Knight had a vision for a shoe brand to rival Adidas and Puma, the only two players in the shoe business at the time really. He borrowed money from his father and launched a company with one simple mission: import high-quality, low-cost running shoes from Japan. Selling the shoes from the trunk of his Plymouth Valiant, Knight grossed eight thousand dollars that first year, 1963. Today, Nike’s annual sales top $30 billion.

Nike Began as Blue Ribbon

Some of the most telling anecdotes in Shoe Dog are the fact that Nike originally begin under the name “Blue Ribbon” at first and initially held that name for a long time. I was also surprised at the tumultuous path Nike had to their eventual success in the 80’s and as we all know the brand to be today. The road was long and arduous for the Shoe Dog Phil Knight, which is true for any start-up, but I never realized just how tenuous it was for the first 20 years.

Nike Began in 1971

It wasn’t until 1971 that Phil Knight changed the name Blue Ribbon to the name Nike we’re all so familiar with today. Oddly enough, Knight himself was very partial to the name “Dimension Six” (which everyone else thought was terrible), while a number of others within the company liked the brand name Falcon. It wasn’t until 1971 when Knight changed the name to Nike seconds before taking a call from a new shoe producer in Japan. The name Nike comes from the Greek goddess of victory.

Nike Goes Public in 1980

In 1976, the company hired John Brown and Partners, based in Seattle, as its first advertising agency. The following year, the agency created the first “brand ad” for Nike, called “There is no finish line”, in which no Nike product was shown. By 1980, Nike had attained a 50% market share in the U.S. athletic shoe market, and the company went public in December of that year. It wasn’t until this time that sales and success really began for Phil Knight and Nike.

Phil Knight and Professional Athlete’s

One of the other telling tidbits in Shoe Dog was the way Phil Knight spoke about all the professional athlete’s he met with, worked with, and crossed paths with during his long tenure at Nike. Knight became close friends with a number of these athletes and knew them better than any of us (or the media) profess to know them. He tells a story about LeBron James giving him a Rolex watch from the year 1971, the year Nike was officially born. LeBron had the watched engraved specifically for Knight, thanking him for taking a chance on him. How cool and thoughtful is that?

The other personal story Knight shared was about Tiger Woods, who has come under great fire lately, and rightfully so for his actions. But he is human and Knight spoke about the fact that Tiger was the first person to call him the morning after his son Matthew died tragically in a scuba diving accident in 2008. Just the way Knight spoke about this moment with Tiger, albeit brief in the book, was really powerful and telling of how much respect and admiration Knight will forever have for Tiger Woods.

Phil Knight, the Shoe Dog

The Shoe Dog, Phil Knight, harnessed the emotional power of a bold vision and a shared belief in the redemptive, transformative power of sports, and created a brand, and a culture, that changed everything. Shoe Dog is a great and telling biography of Phil Knight and Nike, from 1963 to its public offering in 1980. A great read for anyone interested in business or sports.

Book Review: Pre-Suasion by Robert Cialdini

For those of you Millennials who follow my personal finance blog regularly, you know I am a voracious reader and enjoy reading non-fiction business books. We are our single biggest asset, so continue to grow your knowledge and self-educate on a variety of business, money, and financial matters is extremely valuable. The most recent book that I read was Pre-Suasion: A Revolutionary Way to Influence and Persuade by Robert Cialdini Ph.D. The Financial Times dubbed it as one of the best business books of 2016 so I figured I had to give it a read!

Pre-Suasion: A Revolutionary Way to Influence and Persuade by Robert Cialdini Ph.D. is the follow-up book to Cialdini national best seller Influence: The Psychology of Persuasion, which was written in 2006 and sold more than 3 million copies. Dr. Cialdini is nationally renowned for his research on psychology and the power of persuasion.

His latest book, Pre-Suasion, is broken out into three parts; first is on pre-suasion and the front loading of attention. The act of “pre-suasion” is getting to yes and the fact that high-achiever’s spend more time crafting what they do and say before making a request. The best performers also considered and cared about what, specifically, they would be offering in these situations. There is serious vision in all of this for those of us who want to learn to be more influential. The best persuaders become the best through pre-suasion, which is the process of positioning recipients to be receptive to a message before they encounter it. In order to persuade optimally, one most optimally pre-suade.

The second part of Pre-Suasion is based on the process and mechanics pre-suasion. This part especially focuses on the consequences for the ways in which a precisely worded communication can alter human assessment and action. Finally, the last part of the book is based on best practices of pre-suasion and the optimal way to achieve this. This is when Dr. Cialdini introduces a seventh principle of influence, a new addition to his long-standing previous six principles of influence. The new principle is “unity,” which refers to the perception of shared identity. Unity can be based on a variety groups: family, ethnicity, geography, shared interests and many more. The more the individual identifies as being a member of that group, the more powerful the unity effect will be.

I would absolutely recommend Pre-Suasion: A Revolutionary Way to Influence and Persuade by Robert Cialdini Ph.D to all Millennials. It’s a great business book that helps improve your communication skills. It’s not just for marketers and salesmen. This explores proper communication and persuasion in any line of business or personal endeavors.


The Power of Habit Book Review

One of my favorite books that I read in 2016 was Charles Duhigg’s ‘The Power of Habit’. This is a terrific read on the science behind our habits, why they exist, and most importantly, how bad habits can be changed. We’re all creatures of habit and Duhigg helps explain why that is and successful practices used to change that. ‘The Power of Habit’ is a masterful read on self-help and proper ways to go about forming “good” habits in life and business.

Habits work in 3-step loops: cue, routine, reward. In ‘The Power of Habit’ Duhigg revealed that at the source of all habits, like your morning drive to work, lies a simple 3-part loop. The cue initiates the habit: you leave for work at 7:30am each morning. The routine is your habitual behavior: you leave for work at 7:30am and take the exact same route to each morning. Finally is your reward: you arrive at work on time to start your day. Your brain’s activity only spikes twice during this loop. At the beginning, to figure out which habit to engage in, and at the end, when the link between cue and routine is supported. The stronger the connection between cue and routine, the stronger a habit is, e.g. the harder a habit is to change.

How do you break a bad habit?

We just discussed how habits work, but how do you break a habit? You must break one of the three steps in the loop; cue, routine or reward. The trick to changing a habit then, is to switch the routine, and leave everything else unharmed. Duhigg calls this the golden rule. Not all habits are created equal and Duhigg says willpower is by far one of the most important, as it helps us do better in all aspects of life. Luckily willpower is a learnable skill, something that can be taught.

The easiest way to break the habit is to have a plan. Cultivate a plan to disrupt the current habit in some way, so that you can make more conscious decisions about your behaviors. Over time, you can alter your routine and change your habit.

Best quotes from ‘The Power of Habit’

“Habits, scientists say, emerge because the brain is constantly looking for ways to save effort.”

“If you believe you can change – if you make it a habit – the change becomes real.”

“If you want to do something that requires willpower—like going for a run after work—you have to conserve your willpower muscle during the day.”

“Small wins are a steady application of a small advantage.”

“Studies have documented that families who habitually eat dinner together seem to raise children with better homework skills, higher grades, greater emotional control, and more confidence.”

“The Golden Rule of Habit Change: You can’t extinguish a bad habit, you can only change it.”

My personal power of habit experience

Prior to reading Duhigg’s book I fully understood that we’re all creatures of habit. I know this personally from my own “good” habits on working out. I try and workout during lunch at least 4 days a week. Once you do it enough it becomes a habit and its practically second nature. I then began waking up at 5am to run on the treadmill in my basement. It’s hard at first. I mean, it’s really hard at first to condition yourself to do this. Luckily I am a morning person but it still takes time. But after repetition it again becomes second nature. It became a habit for me.


Book Review: Moonwalking with Einstein by Joshua Foer

Moonwalking with Einstein recounts Joshua Foer’s yearlong quest to improve his memory under the tutelage of top “mental athletes.” And if you’re anything like me you feel your memory is below average. I mean how often do you hear the phrase, “I can’t remember what I had for breakfast.”? Exactly…we’re not alone, as most all of us struggle with memory problems. And obviously some more than others, but I think overall we could all use a memory “boost”.

I listened to Moonwalking with Einstein by Joshua Foer with that exact intention; improving my memory based off his research. It’s so easy these days to not remember things because of all the technology we have at our disposal. Phone numbers and addresses? Well that is easily accessible right in your smart phone. Same goes with other important and/or trivial facts you may wish to know or discuss. You can simply look up an answer in a matter of seconds by Googling the question on your phone.

But remembering certain things does help us both personally and professionally, like names of people we meet, details about their family, specifics on a project your working on for your company, past details on previous assignments, etc. All of this can help you succeed and advance in life and business. So making a conscious effort to improve your memory makes a lot of sense for everyone.

Foer attended the U.S. Memory Championships in Manhattan in 2005 while doing research for a story. “The scene I stumbled on,” he writes, “was something less than a class of titans: a bunch of guys (and a few ladies), widely varying in both age and hygienic upkeep, poring over pages of random numbers and long lists of words.” One year later, after months of exhaustive training, Foer won that competition by memorizing a set of 52 cards in one minute and 40 seconds, breaking the American record.

Moonwalking with Einstein is more than a personal diary of that accomplishment. Our memories, Foer tells us, are the base of evolution, the foundation of wisdom, the source of creativity. Our brains are no larger or more sophisticated than our ancestors’ were 30,000 years ago. If a Stone Age baby were adopted by 21st-century parents, “the child would likely grow up indistinguishable from his or her peers.”

As Foer explains it, what makes our brains such astonishing tools is not just the volume of information we are able to store, but the ease and efficiency with which we can locate it. Look no further than your own head to find “the greatest random-access indexing system ever invented” – a search engine of amazing proportions. No computer you can buy will come close to replicating it.

In the end, Moonwalking with Einstein reminds us that though brain science is a wild frontier and the mechanics of memory little understood, our minds are capable of epic achievements. The more we challenge ourselves, the greater our capacity. It’s a fact that every teacher, parent and student would do well to learn.

I know this isn’t a “personal finance” book and that is in fact what my blog is dedicated too. However, I strongly believe personal development helps ones finances. Moonwalking with Einstein is good read and I highly recommend it to anyone looking to improve their memory retention. And who couldn’t use a little memory improvement?

The Success Principles of Jack Canfield


In late 2015 I began this very personal finance blog. It is my outlet for reading and researching on all things personal finance. One of my goals in 2016 was to read more. Read more books (non-fiction), scholarly pieces, magazine articles, and blog posts. My goal was to dramatically expand my knowledge in all things related to money, investing, business, self-improvement, and personal development.

I’ve always enjoyed reading business books to help me succeed professionally. Last year is when I really focused on succeeding financially. I’ve read a number of finance books, as well as biographies on successful investors like Warren Buffet and Jack Bogle. The one common theme from these successful people was their continued research and thirst for knowledge. They were always seeking self-improvement, which in turn brought greater wealth (personally, professionally, and financially).

Never Stop Learning

I always thought “self-help” books weren’t for me but they are unbelievably valuable. One of the latest books I just completed was The Success Principles by Jack Canfield (famed co-creator of Chicken Soup for the Soul).

The Fundamentals of Success

1. Take 100% Responsibility for Your Life
2. Be Clear Why You’re Here
3. Decide What You Want
4. Believe It’s Possible
5. Believe in Yourself
6. Use the Law of Attraction
7. Unleash the Power of Goal-Setting
8. Chunk It Down
9. Success Leaves Clues
10. Release the Brakes
11. See What You Want, Get What You See
12. Act As If
13. Take Action
14. Just Lean Into It
15. Experience Your Fear and Take Action Anyway
16. Be Willing to Pay the Price
17. Ask! Ask! Ask!
18. Reject Rejection
19. Use Feedback to Your Advantage
20. Commit to Constant and Never-Ending Improvement
21. Keep Score for Success
22. Practice Persistence
23. Practice the Rule of 5
24. Exceed Expectations

Transform Yourself for Success

25. Drop Out of the “Ain’t It Awful” Club…and Surround Yourself with Successful People
26. Acknowledge Your Positive Past
27. Keep Your Eye on the Prize
28. Clean Up Your Messes and Your Incompletes
29. Complete the Past to Embrace the Future
30. Face What Isn’t Working
31. Embrace Change
32. Transform Your Inner Critic into an Inner Coach
33. Transcend Your Limiting Beliefs
34. Develop Four New Success Habits a Year
35. 99% Is a Bitch; 100% Is a Breeze
36. Learn More to Earn More
37. Stay Motivated with the Masters
38. Fuel Your Success with Passion and Enthusiasm

Build Your Success Team

39. Stay Focused on Your Core Genius
40. Redefine Time
41. Build a Powerful Support Team and Delegate to Them
42. Just Say No!
43. Become a Leader Worth Following
44. Create a Network of Mentors and Others Who Will Up-Level You
45. Hire a Personal Coach
46. Mastermind Your Way to Success
47. Inquire Within

Create Successful Relationships

48. Be Hear Now
49. Have a Heart Talk
50. Tell the Truth Faster
51. Speak with Impeccability
52. When in Doubt, Check It Out
53. Practice Uncommon Appreciation
54. Keep Your Agreements
55. Be a Class Act

Success and Money

56. Develop a Positive Money Consciousness
57. You Get What You Focus On
58. Pay Yourself First
59. Master the Spending Game
60. To Spend More, First Make More
61. Give More to Get More
62. Find a Way to Serve

Success in the Digital Age

63. Master the Technology You Need
64. Brand Yourself with an Online Persona
65. Use Social Media in a Way That Enhances Your

Reputation

66. Use the Exponential Power of Crowdfunding
67. Connect with People Who Can Expand Your Vision

Final Thoughts on The Success Principles

I consider this book a must-read for all Millennials who want to succeed in life and business. It’s a great tool for helping you advance your life and career, emotionally and financially. The Success Principles gives you the basic strategies for success plus the advanced strategies that will help you become a success master. The principles are simple.


Think and Grow Rich Book Review

Think and Grow Rich was written by Napolean Hill and originally published in 1937

Think and Grow Rich was written by Napolean Hill and originally published in 1937. It is widely considered one of the most influential finance and self-development books ever written. Hill’s inspirational book was written after spending nearly 20 years researching the accomplishments and characteristics of the 500 most successful business people.

In the original Think and Grow Rich, published in 1937, Hill draws on stories of Andrew Carnegie, Thomas Edison, Henry Ford, and other millionaires of his generation to demonstrate his principles. In the updated version, Arthur R. Pell, Ph.D., a nationally known author, lecturer, and consultant in human resources management and an expert in applying Hill’s thought, skillfully interweaves anecdotes of how more modern millionaires and billionaires, such as Bill Gates, Mary Kay Ash, Dave Thomas, and Sir John Templeton, achieved their wealth. Esoteric terminology and examples are authentically refreshed to impede any stumbling blocks to a new generation of readers.

Think and Grow Rich sets out the 13 key principles for success in business and life. This is an ageless piece of literature that has guided many to success, and has sold millions of copies for nearly three quarters of a century. Below is an outline of the 13 principles described in the book.

13 Principles of Think and Grow Rich

1. Desire

This is the starting point to success and is perhaps the most important principle. Your desire is an accurate picture of what you will become. We all have a built-in regulator which means that you would not have the desire unless you were capable of its accomplishment.

Napolean Hill defines the six steps to attaining your desire. The example below talks about the desire to have more money but can be altered to cover any desire you may have.

1. Fix in your mind the exact amount of money you want to have in your possession.
2. Decide what you are prepared to give in return (perhaps a service you will provide).
3. Select a definite date by which you will have acquired this money.
4. Prepare a definite plan and begin to implement it immediately.
5. Based on the first 4 steps write down a clear statement of the amount of money you will acquire, the time limit for its acquisition, what you will give in return and your plan for accumulating it.
6. Read your written statement aloud just before going to bed and once again first thing in the morning. As you read see yourself already in possession of the money.

2. Belief

It is vital that you have the confidence that you can accomplish your greatest desires. Remember that you would never have thought of your desires unless belief had been tugging at your mind. Napolean Hill suggests that your belief is a state of mind that can be persuaded by declarations or frequent instructions to the unconscious mind.

3. Auto-Suggestion

This is the method of putting the sub-conscious mind to work for you through repeated suggestion. It is the ability of being able to concentrate your mind on your burning desire until your subconscious mind accepts it as fact and starts to devise ways of bringing it about. This is where flashes of inspiration come from and why they should be trusted.

4. Specialized Knowledge

To be successful you will require specialized knowledge of what you intend to do in return for wealth. People talk about the fact that “Knowledge is power”. However it is only potential power. Knowledge is only powerful to the extent that it is organized into a definite plan of action and directed to a definite end. If you do not possess all the required knowledge then you must bridge your weaknesses to learn all that you can.

5. Imagination

This principle reminds us of how powerful our imagination is and the importance of tapping into it in order to achieve great things. We should constantly use our imagination to think of ways to do things better, to look at what changes are inevitable and to ask ourselves can we make them now.

6. Organized Planning

In his chapter on desire Napolean Hill talked about the importance of having a definite plan on how to achieve your goal. A man without a plan is like a ship without a course – no place to go with disaster a probability. Every person who has risen above the average has always had a plan to achieve their goals.

7. Decision

One of the common characteristics of highly successful people is the ability to reach decisions quickly and to change them slowly. Conversely, unsuccessful people procrastinate regularly and often take a long time to make a decision and then they change far too quickly. In fact in a survey of 25,000 business people poor decision-making was at the top of the list of the reasons that people fail. And remember this – if a decision is worth anything at all it is worth sticking to, until it has been completely worked.

8. Persistence

This quality has often been the key difference between success and failure in countless case studies. The lack of persistence has kept the majority from great accomplishment. Very often when things get tough and we feel there is no hope – it is at this point where, if we persist we will start to see the first signs of success. Persistence is a state of mind and therefore can be cultivated.

9. Power of the “Master Mind”

Throughout the book Napolean Hill refers to a “Master Mind” group. The ““Master Mind”” can be defined as “Co-ordination of knowledge and effort, in a spirit of harmony, between two or more people, for the attainment of a definite purpose”. This principle is about setting up a group of individuals understanding to your desires and with similar plans. When 2 or more minds get together they form a 3rd intangible force – a 3rd mind. As a result a lot of good ideas are generated which would not have been created on your own. This, of course, will also happen to the other members of the group.

10. The Mystery of Sex Transmutation

Probably the key message in this chapter is the importance of having a good, supportive partner behind you to help you attain the success you desire. Napolean Hill talks about the importance of having a good mate. Behind every great man is a great woman (and vice versa). Josephine inspired Napoleon. “A man’s wife may either make him, or break him.”

11. The Sub-Conscious Mind

The Sub-Conscious Mind is a field of consciousness where every impulse of thought that reaches the objective mind through any of the 5 senses is classified and recorded and from which thoughts may be recalled or withdrawn – the same way that letters can be taken from a filing cabinet. Although not much is known about the sub-conscious mind it is incalculably powerful. It can solve any problem if we use it the right way. We need to hold in our conscious mind as clear a picture of ourselves already accomplishing our goals and to do this as often as possible. When creating these pictures we must know what we want and define it clearly. You should then project it clearly in your mind as if you have already achieved your goal. These images must be mixed with emotion and faith to be really effective. Remember your sub conscious mind is never idle. It is at work both day and night on your dominant thoughts and desires. Therefore if you don’t feed it with positive thoughts and images it will work off your negative thoughts instead.

12. The Brain

If you had access to all the wealth in the world and took a cent you would be doing what you have probably been doing all your life in the use of your brain. It is a great shame how the average person does not fully understand the power of the brain and the minds it is connected to – Conscious and Sub-conscious.

13. The 6th Sense

The 6th sense can be described as the sense through which infinite intelligence may and will communicate voluntarily without any effort from, or demands by, the individual. It is that portion of the subconscious mind referred to as the creative imagination. It is also known as the “receiving set” through which ideas, plans and thoughts flash into the mind. The sixth sense can be considered the apex of the philosophy set out in “Think and Grow Rich”. It can only be integrated, understood and applied by first mastering the other 12 principles. Therefore the ability to use the sixth sense comes with the application of the other 12 principles.

While the tone and style of Think and Grow Rich itself is nothing short of old-fashioned, I still consider this a required read for all Millennial’s who are looking to succeed in life and business, and ultimately become wealthy.