Put Your Money Where Your Heart Is Review

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This is a review from Debt Ninja and he has a PF blog called Punch Debt in the Face. For more of his flava and Randy Jacksonisms you should check it out.

Yo yo yo, What’s up all your CPFers? I’m hooking up my boy Bob with a little book review today so I hope you all enjoy. Disclaimer: I’m nowhere near as intelligent, articulate, or awesome as Bob so I apologize in advance for this flawed masterpiece. Now on to the book review…

Have you heard the phrase “Put your money where your mouth is”? Well forget about that, it’s time to Put Your Money Where Your Heart Is, at least that’s what author Natalie Pace says. If you’re like me you have never heard of Ms. Pace so I’ll give ya a little background. She went from a poor single mom to a wealthy single mom. That’s pretty much all ya need to know about her.

The book breaks itself up in to four sections 1) Get Educated 2) Get Involved 3) Get Savvy and 4) Get Rich and Stay Rich. I’m gonna try and break down each section in eleven words or less…

Get Educated: Learn about companies you and friends are interested in.
Get Involved: Talk with friends about companies they’re interested in.
Get Savvy: Prepare for a rollercoaster and remember you wont get rich overnight.
Get Rich and Stay Rich: Use knowledge to make a buttload of money and keep it.

Get to know companies before investing in them

At its core the book is about getting to know companies before you invest in them. If you’re a web guru and have all the latest info on the hottest up and coming search engine then maybe you should consider investing in their stock before they blow up (Google anyone?). Put Your Money Where Your Heart Is provides a plethora of information about how a company can be adequately reviewed including a “stock report card” to estimate the value of a company. The report card includes things like P/E ratio, Stock Price, 52 week Hi/Lo, D/E ratio, Market Cap/# of Shares, etc. You can use the report card to get a snapshot as to how likely the company is to succeed and exceed your expectations. Natalie wants you to use this report card so that you can intimately know your prospective investment and be assured you are making a smart move.

I think my favorite part of the book was when she discussed an investment club that she had started. Similar to a book club, she met with five to ten women weekly and they discussed what stock they thought was on sale and sure to rise. One person each week was responsible for conducting all the research on XYZ Company and then presenting it to the group at the meeting. If the group agreed the company was a good deal they each contributed some cash and invested. It was much akin to a book club, but instead of discussing Harry Potter, they were discussing Pottery Barn. I personally have never thought about getting together with good friends and discussing what stocks were undervalued. Although I think most of my friends would punch me in the face if I suggested starting an investment club, I think the principle is what is important: Meet with people that you trust so they can provide suggestions, advice, and wisdom before you invest.

Is Put Your Money Where Your Heart Is the greatest book I’ve ever read? No, but it’s a solid performer and as I mature financially I may pick it back up and use that “stock report card.” She is a big advocate of taking control of your situation and self-responsibility so she’s got my stamp of approval. If you’re interested in playing the stock market give this book a try, you just might walk away with a couple nuggets of knowledge.