Recently finished reading “Stop Saving Start Investing: Ten Simple Rules for Effectively Investing” by Jonathan Hobbs. And I have to say straight off the bat, it was a very easy read.
Why Book Reviews? I have made a commitment to myself to increase my Financial Literacy / Financial IQ, by taking in multiple opinions and approaches to gain Financial Independence. This was just one of the books I had lined up in my Kindle ready for the task ahead… You can find my Q3 reading list here!
What does it cover?
This was a quick and relatively easy book to understand and digest, even if you are a beginner to personal finance and investing.
It is broken down into bite sized chunks, and gives you essentially a step by step plan to invest rather than save.
Ultimately this book is aimed at getting you to take action, and invest in a ‘fund of funds’ – which is basically you setting up your investment strategy and choosing a portfolio of 3-5 funds to invest it.
Topics covered are all very much valid, covering the magic of compound interest (and why stock market may be better than saving in your bank account), dividend reinvestments, tax considerations, etc.
It also looks at investing in lump sum, versus Dollar-Cost Averaging or Value-Cost Averaging. And then when/how to rebalance…
For the beginner, these are all areas that I feel should be covered before dipping your toe into the stock market.
One thing to point out, the book is based on the UK Market… So take that into consideration. The funds referred to in the book and tax considerations may be similar in Australia but they are not the same.
Overall, I found it informative and personally love seeing examples of compound interest in action… It really is magic!
This book is great for beginners / relatively new entrants into the share market and investing. And each chapter has a little recap/action section to it, which I felt was a really good idea.
Even if you know a little more, I found it was still good to cover some of the common topics again but from a slightly different point of view. Personally, this was the first time I had heard of ‘value-cost averaging’ and seen how it compared to ‘dollar-cost averaging’.
Rating: 4 out of 5
Where to buy it
You can purchase the book via Amazon.
In interests of transparency, this link is an affiliate link and may result a small portion of the sale going to support the running of this site.