Financial Knowledge Is Freedom - Page 2 of 2

Financial Knowledge Is Freedom

Secret Code of the Superior Investor: How to Be a Long-Term Winner in a Short-Term World (Crown Publishing; $14) and Jim Collin’s Good to Great: Why Some Companies Make the Leap …and Others Don’t (Harper Collins; $27.50). Other great reads: Black Enterprise Guide to Investing by James A. Anderson (John Wiley & Sons Inc.; $19.95) and The Millionaire’s Club by Carolyn M. Brown (John Wiley & Sons Inc.; $19.95).

Timmons obviously recommends attending seminars like those she offers or even taking courses on investing at a local college. There are also seminars sponsored by groups such as the American Association of Individual Investors (800-428-2244; in Chicago. For a $49 annual membership fee, investors can receive guidance on investments and tax issues.

Make sure that your investment matches your goals and time horizon. “If you want to buy a home in five years, you wouldn’t invest that money in stocks because it’s too short of a time frame,” explains Timmons. “I would put the money in either a money market or a CD because the principal is protected, and it’s going to earn a higher level of interest than it would in a regular savings account.”

Timmons says, too often, people don’t want to do the work, whether it’s following a budget or reviewing financial statements. That’s because a lot of people just don’t get it: “How much you put into something determines how much you’ll get out of it.”