Making compounding accessible to every beginner!
Ever reflected on the maths classes you attended at school and realized you learnt nothing? I felt the same when it came to managing my finances. I have always been taught that money is of paramount significance and I must work hard to earn a substantial income. But I never learnt how to
-Earn a passive income
-And compound my earnings
-While achieving financial freedom
-And gaining security for the long term
The above is what made me pick up You Can Compound by Vivek Mashrani and it blew me away by how accessible the content was! I felt that a lot of the details and suggestions given are real-life experiences, as the author has narrated stories that seem realistic. He has broken down the most complex concepts to make sense and compehensible for a beginner.
What did I love about the book?
One thing I loved about You Can Compound was how relatable it was. The flow of thought the author has followed perfectly mirrored my own. When he explained one concept, a follow-up question would arise in my mind. Surprisingly, the very next topic discussed would be the question that I was wondering about! This happened several times in the book, which made me feel the author considered the content from a greenhorn's point of view.
I also loved how each chapter had a summary page at the end of it that highlighted the key takeaways discussed. Since there was so much discussed in the chapter, I found it very useful to have all the points in one place. It is valuable, as I can also revisit these pointers if I need clarity in the future.
It was subtle yet valuable details like these that made the book stand out for me - it made it so palatable to consume the content and remember it.
The language and explanations
The author has used extremely simple and a conversational tone to convey the facts. I found it interesting how he has explained even formulas like he is speaking directly to the reader. In some cases, there are stories where a knowledgeable character explains the details to a layman.
He has also used catchy points and impactful one-liners which have stayed with me even after I finished the book. I also loved how the book highlighted quotes from Elon Musk, Warren Buffet, and more known personalities.
By drawing in such examples and his own experiences, the author has proven that the details shared are authentic and relevant to contemporary circumstances. I also loved how the ideas laid out seemed so futuristic and could be relevant even in the future.
Use of mnemonic terms
I am someone who finds it hard to remember important terms and keywords. I always make notes but cannot recollect vital points when I need to. Therefore, I liked how the author used mnemonic words like T.R.E.E and M.A.C.H.I.N.E to make difficult terms easy to recollect. At the same time, I found it hard to interpret the graphs given and some formulas later in the book.
Considering that I am a total beginner who finds it hard to understand finance, I couldn’t understand some of the graphs. I found myself bringing a paper and pen to calculate some of the numbers given as they seemed impossible! For example, the table in the very first chapter that highlights the growth of your money through compounding was so hard to believe for me! I didn’t believe it until I calculated it myself with a calculator.
Who is this book for?
I would say this book is for anyone new to finance who wants to learn from rock bottom. I am very weak in personal finance and unless it is dumbed down completely, I tend to lose interest. If you are like me and wish to learn about passive income and compounding from scratch, definitely pick up this book.
However, I wouldn’t recommend you read this book unless you have a lot of time on your hands to spare. It requires your undivided attention and I had to often stop whatever I was doing to sit down with it and focus. I tried taking it out with me once to read on the bus and ended up losing my focus and having to read graphs and tables repeatedly.
It is time we learnt beyond our school textbooks and in the words of the author - made our money work hard for us rather than toiling to earn it!