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One of the best things about reading is that it can help readers bridge the gap between where they are in life and where they want to be. This is especially true for people who want to gain knowledge in topics they have not previously been exposed to, such as investing. A great example is the story of 36-year-old Rachel Jimenez, who credits three books with helping her earn $120,000 a year in passive income.
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Jimenez is a CNBC contributor, investor, and mother of two who achieved financial independence by developing passive income streams and running a store on ETSY. She began her journey four years ago after realizing she was unhappy with her current job but lacked knowledge on how to build wealth. Rachel says that as a child she remembers her parents buying lottery tickets and fantasizing about winning.
That’s not a good investment strategy, but it led Rachel to ask, “Why not find a way to get rich with better odds?” One of the first things he had to do was change his way of thinking. Like many people, Jiménez had trouble being too hard on herself. Jiménez credits the book “Change Your Questions, Change Your Life” by Marilee Adams.
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The whole point of the book is to reexamine how self-talk can be self-destructive and lead to self-doubt. Rachel credits internalizing the lessons and techniques in this book to shifting her thinking from overly critical to more solution-oriented. Self-confidence is the key to achieving any goal, but believing in yourself is a habit. This book helped her learn how to do it.
Once Rachel had the confidence to pursue her dreams, she had to acquire the skill set necessary to become an effective money manager and investor. That’s where “The Simple Path to Wealth” by JL Collins came into play. Rachel says this book gave her the building blocks to establish a solid financial foundation.
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Here he learned to live debt-free and save 50% of his income. Jiménez says the book taught him other important lessons, such as the ideal ratio between annual investment income and investment capital needed to be financially independent (4%). It also emphasizes the importance of avoiding relationships with people who are bad with money, heavily in debt, or spend recklessly. It’s hard to go wrong following that advice.