I have had the pleasure of reading the JagoInvestor book that has been out in the market for a month now. Written by Manish Chauhan, a personal fellow blogger and a friend, I could not help writing a review on the book.
I remember when I was in my teens, I used to finish the Alistair MacLeans and James Hadley Chases in one sitting of a couple of hours. Though I have grown old and juggle multiple things in a day, the book was so captivating that I knocked it off in two sittings. So you know what is coming next ?
The book, chapter by chapter
Like me, Manish comes from an IT background and left his full time job to change people’s relationship with money. The book is an attempt at that.
The subject of the book is basic personal finance and principles of financial planning. In that sense, it is a must read for every new beginner. I recommend that experts on personal finance also grab this book, here is why.
Chapter 1, “Burning the Jungle” is an absolute stunner. One could never have imagined how the power of compounding can be looked at in different ways. Manish presents various inferences that will give a whole new perspective to things you already knew but never stretched your imagination further to explore. Therein lies the difference between the author and others.
Chapter 2, “Have you protected your garden” is all about insurance. The questionnaire that Manish uses while coaching his clients is very interesting and I am sure, enough to drive home the point to investors who don’t have enough life insurance and think they don’t need it. A ready reckoner of how much insurance one needs at 6%, 8% and 10% inflation and various returns is helpful as well.
Chapter 3, “Get, set, goal” is all about goal based investing. Manish has used different terminologies for must-have and good-to-have goals – committed goals, interested goals, outcome goals and process goals. Impressive, I must admit. You also clarify here what SMART goals are – Specific, Measurable, Attainable, Relevant, Time-Based.
Chapter 4,”Busting your myths about money” is to drive home the point that equity is not risky in the long term but is in the short term while debt is safe in the short term and that returns from stocks can get you the riches you desire but only in the long term. Manish uses some interesting Sensex data to prove this point – this is where you will spend ample time trying to understand the analysis. Worth the time.
Chapter 4 also talks about asset allocation and rebalancing.
Chapter 5, “Change your relationship with money” is all about your attitude towards money and how your own money behavior can get things going for you. Manish says that you are a movie star in your life’s financial film and only you can make it 9 stars out of 10.
Chapter 6, “Simplifying your financial life” is one of the most practical chapters with to do things that everyone will find useful. Manish shows how documents can be managed using technology and automation. Watch the 6 commitments at the end of the chapter.
Chapter 7, “10 things to do to make your financial life awesome” is essentially a laundry list of things you need to do right in your financial life. Each one of those 10 things is essential to understand and implement.
Should you buy the book ?
Firstly, Manish’s style of writing is simplicity. That helps everyone understand each chapter easily. While it is simple, the writing style is rich.
Secondly, every chapter is followed up with an action plan, which in my mind if you follow, you would have already begun on the journey of financial freedom.
Thirdly, needless to say, the book is studded with stories and quantitative examples that make your reading and understanding both enjoyable. In a very subtle way, Manish starts with a story, moves to examples and drives home the point. The flow is so easy going that you get the point the author is intending to make.
So for every investor who wants to start learning about personal finance, JagoInvestor book is a must. This book will lay the foundation of strong financial habits as soon as you read it (which we inculcate very late in life) – read it now to take advantage of early investing.
The book also has nice graphics at appropriate places to help the readers understand the topic being discussed.
At Rs 374, you are getting a kick start to your financial life – why miss it ? In case you need a free copy, try this.
For some folks who were pointing out in social media that there are mistakes in calculations, well, why not appreciate a mammoth attempt by a youngster to write a book instead of trying to find faults.
Well written Manish, my best wishes with you always. Keep up the good work !
PS : I am not an affiliate for the JagoInvestor book. I don’t get anything if you buy ! It’s you who gets a new life !
Good one. Thanks for sharing about the book with more people
@nandish, Hey Nandish, you guys are doing a great job man, keep up the good work.
I have read only a few chapters of the book and found it very interesting.Although in his mail to me Manish had mentioned that readers who are active on personal finance blogs may not find it very useful but my feeling is that even if one is able to learn a few points it is worth reading.
@ANIL KUMAR KAPILA, I recommend that they read it as well, it is always good to brush up the basics.
I am in the process of reading it. It is a must buy book. It is educative & very useful. This book more importantly shows one which direction one should take.
@rajivahuja, Good Rajiv, do give direct feedback here on JagoInvestor website.
You can get a FREE copy as well: –
http://www.jagoinvestor.com/2012/02/free-jagoinvestor-book-by-moneysights.html
@Radhey Sharma, Radhey, you may want to put this in your article itself in case people don’t see my comment.
@Vivek K, Updated sir !
Great. Surely am going to read that book.
Hummmmm you are also from IT background Radhey :). I did smell it, though was not confirmed.
@Radhey,
You too from IT?????? that’s news..
I thought CFP’s were from Accounting background.
Good to see a lot of IT readers here who are planning their financial planning.
Where are all the Financial/Accounting guys gone?
@Rakesh, You can become a CFP from any background, not necessary accounting only.
@Radhey,
Yes, i know about it but usually people from financial/accounting background would have more knowledge as they would had learned few things as part of their basic education.
@Chirag, Lol, how did you smell it ?
@Radhey Sharma, LOL, I can’t describe it Radhey. From so many things overall and also the way you talk about IT people when you refer in your article or anywhere else.
@Radhey,
I have been following Manish for the last couple of years and i hope this book should be very good. The last book which i read on financial planning was Subra’s Retire Rich which was an excellent book
@Radhey,
Like the last comment you made –
PS : I am not an affiliate for the JagoInvestor book. I don’t get anything if you buy ! It’s you who gets a new life !
Very true……..
I am following Manish since 2 years now and I am very sure that the book will bring good knowledge and changes in common man’s financial life
wish you all the best Manish and Nandish!
I bought this book too and gifted to my wife. She showed interest in investments and financial planning so thought this would be a good thing for her to start.
Of course I am going to read it as well and share my views here later.
Just completed reading this book and its great, its a must read for everyone starting their finances. Those familiar with jagoinvestor will find some of the articles in the book but nevertheless even for people with sound knowledge in financial planning this book is refresher.
My views –
Language written is very simple and can be understood by a common man.
Good use of charts depicting future goals.
Use of day-day/personal life examples make it more interesting to read.
More stress on early investment.
Good use of pictures make it more easier to understand
I have asked my wife to read it too.