Financial Success and Self Sufficiency - Book Report/Review Example

Chapter 6: Chapter Summary The amazing thing about Chapter 6 is that it hits the nail on the head as it systematically dismantles the prevailing views about saving and financial planning. For instance, many of the young people with a family do believe that to be rich and successful one does need to have lots of luck and some outstanding breakthrough in life. The popular media and culture mostly percolate such views about financial success and self sufficiency. In that context Chapter 6 systematically puts forth the idea that it is possible to have a life marked by financial security and self sufficiency even with a regular monthly income, provided one is willing to give in to the requisite discipline and patience.

This idea indeed sounded propitious and positive. The other thing that Chapter 6 does is that not only it arranges the financial planning for any individual into four well demarcated stages, but it also links each and every stage to the appropriate financial challenges and issues that an individual may come across during the lifetime across which that stage spans. This is indeed eye opening. Young people seldom think that financial planning is about accruing a sense of financial stability and security.

Rather they tend to contrive financial stability in terms of vague terms like ‘rich’ or ‘wealthy’, which may mean different things to different people. In contrast the ideas presented in Chapter 6 contrive each stage of the lifetime saving plan to accrue maximal sense of safety, stability and security for the person pursuing that plan. Thereby it goes on to advocate the creation of a short term monetary cushion to meet the momentary financial ups and downs, paying of the debts and the creation of a slightly long term financial cushion to deal with more forbearing and serious financial upheavals.

The approach presented in this Chapter is indeed convincing and no wonder any young person with a family in Canada can adhere to it to embark upon a life of financial security, stability and success. Once the short term financial insecurity is dealt with, the Chapter proposes a long term savings and investment strategy aimed at caring for the old age, shelter and other aspirations of people. Again this Chapter convincingly shatters the popular myths associated with things like saving for retirement, paying off one’s house and saving money to invest in things that one cherishes and enjoys.

Many simple and pragmatic suggestions presented by the writer regarding each of these important aspects of long term financial planning are sufficient to prevent people from getting trapped in the quagmire of financial myths and fallacies. The quintessential essence of this Chapter is that it puts forth the idea that it is indeed possible for the ordinary people to do extraordinary things when it comes to financial planning, provided they move on with their financial life in a systematic, planned and disciplined manner.

In that sense this Chapter indeed makes worthwhile financial education for any ambitious and aspiring young student.