A Wealth of Common Sense is a thought provoking book written by famous author Ben Carlson. This book has a lot of self-developmental content that gives financial advice on how to start, grow, maintain and improve one’s financial status concerning wealth. Do you want to know how wealth is created? How it is maintained and then improved upon? Do you wish to create wealth that stays from generation to generation? You should consider reading “A Wealth of Common Sense” by Ben Carlson.
My Personal Experience Reading 'A Wealth of Common Sense'
One important fact I loved about this book is that, it aims to help readers navigate the complex world of investing and personal finance. Through a series of anecdotes, data-driven insights, and practical individual advice, Carlson challenges many of the common misconceptions that individuals have about money and investing.
1. Consider Long term Investment
The first important key point to learn from the book is that, investment should be viewed as a long-term process. Instead of trying to time the market or pick individual stocks, Carlson suggests that investors focus on building a diversified portfolio of low-cost index funds and hold onto these investments for the long haul. This strategy not only reduces the risk of losses but also provides a higher probability of achieving long-term financial goals.
What to learn from this Advice.
I think this point is the way to go for people who would like to keep their investment portfolio in stocks and cryptocurrencies. The bottom line is that, whatever you are investing your finances in, you should consider the long-term aspect rather than short term. Be it blogging, affiliate marketing, crypto trading, Print on demand business, stock trading, buying and selling physical or nonphysical items of value, real estate business, etc. Just look at the long term and diversify your investments.
2. Market Volatility is Inevitable
Another key takeaway from ‘a wealth of common sense’ is the importance of humility in investing. Carlson notes that even the most skilled investors cannot predict the future with absolute certainty, and that trying to do so can lead to costly mistakes. He emphasizes the need to acknowledge one's limitations, stay disciplined, and stick to a sound investment plan even when the market is volatile. Market volatility is what brings profit and loss, and you cannot avoid it. Study and learn from it to your advantage.
What to Learn from This Advice.
Predicting the price of stocks, cryptocurrencies, products or your investment portfolio in future, then using the calculator to determine how your profits will look like in the next two, three or more years is not a good advice. Never count your profit before you get your profit. A bird in hand is worth more than two in the forest. Humility is a virtue you need to have as an investor; otherwise, you will be disappointed by market downturn and be drained emotionally. This will affect your mental thinking and ability to take informed investment decision.
3. Put your Emotions under Check
From the book, Carlson also explores the role of emotions in investing, arguing that they can be both a blessing and a curse. While emotions can help investors identify opportunities and avoid pitfalls, they can also cloud judgment and lead to impulsive decisions that damage long-term returns. He recommends that investors take steps to minimize emotional bias by setting clear investment goals, diversifying their portfolio, and avoiding the temptation to make frequent trades based on short-term market movements.
What to Learn from this Advice.
Your emotions can make or mar your investment portfolio. Keep your negative emotions far away from your investment. Look at the future rather than near. Emotions are involuntary and you cannot keep them away. Learn to keep your emotions under control using some financial apps. Download some financial investment apps to keep track of your investments. Configure these apps to tell you when to invest and when to sell, keep tracks of your portfolio and reinvest your turnovers.
4. Importance of Savings, Taxes and Fees
In addition to these key themes, Carlson covers a wide range of other topics related to investing and personal finance in his book, including the importance of saving, the role of financial advisors, and the impact of taxes and fees on investment returns. Throughout the book, he uses a clear and engaging writing style to explain complex concepts in a way that is accessible to readers of all backgrounds and experience levels.
In general, "A Wealth of Common Sense" is a valuable resource for anyone looking to improve his or her financial literacy and develop a sound investment strategy. By dispelling common myths and offering practical advice, Carlson provides readers with the knowledge and confidence they need to navigate the often-confusing world of investing and achieve their long-term financial goals.
Below are some popular quotes from A Wealth of Common Sense. You can frame them from etsy, printify, printful, moteefe, etc and place them on the wall as a daily reminder on your investment wealth creation journey.
Also Read: What is generational wealth creation and how to build as a legacy.
Here are some popular quotes from "A Wealth of Common Sense" by Ben Carlson:
"Investing is a journey, not a destination. You will never get there if you don't start."
"Diversification is the only free lunch in finance."
"The best way to handle risk is to prepare for the worst and hope for the best."
"The most important financial decision you make is how much to save, not where to invest."
"The key to successful investing is not predicting the future, but preparing for it."
"The goal of investing is not to beat the market, but to meet your financial goals with as little risk as possible."
"If you can't control your emotions, you can't control your money."
"The most important asset in your portfolio is your behavior."
"The greatest risk in investing is not volatility, but the risk of making emotional decisions at the wrong time."
"Investing is not a game of perfect, but a game of probabilities. Your job is to tilt the odds in your favor."
My Recommendation on A Wealth of Common Sense
This wonderful book by Ben Carlson offers practical advice for building and maintaining wealth over the long term. The book covers a wide range of topics related to investing, including the importance of diversification, the impact of fees and taxes on investment returns, and the benefits of taking a long-term approach to investing. Reading the book you will learn that, successful investing is not about picking the right stocks or timing the market perfectly, but rather about developing a sound investment strategy and sticking to it over time. Carlson emphasizes the importance of avoiding emotional decision-making and focusing on the fundamentals of investing.
A Wealth of Common Sense is a highly recommended read for anyone looking to improve his or her understanding of investing and develop a more disciplined approach to building and preserving wealth. I recommend this wonder book for those interested in trading stocks, trading FOREX, crypto investors, buying and selling physical or nonphysical products, investing in agricultural produce like grains, investing in blogging, affiliate marketing or eBook selling. It is a wonderful book with awe-inspiring financial advice.
So Where to buy A Wealth of Common Sense?
You can place an order for a wealth of common sense on either of these popular online stores to purchase a hard copy or soft copy. Kindle Store, Barnes & Noble, Kobo, Google Play Books etc. Get it and read, you will never regret it. This book will help shape your financial thinking, build up your decision making and give you better ideas on how to invest and grow your financial status.
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