Review: Millionaire Teacher 2nd Ed.

Billionaire Teacher?


I just realized I have never reviewed Millionaire Teacher on the blog. It’s been on the Further Reading page forever, and I recommend it to almost everyone who comes here, but this review of the second edition will be the first formal write-up. Oops.

Millionaire Teacher is the best book I know of to read when you don’t know much about investing and want to learn enough to get started.

Andrew Hallam is a former teacher who saved and invested his way to early retirement while working at international schools. He wrote Millionaire Teacher because he couldn’t find any books on investing to give to his colleagues that didn’t use jargon or assume prior knowledge.

In the book, Andrew explains what investing is for and how to do it. He introduces his ‘nine rules of wealth’. The nine chapters in the book are:
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  1. Spend like you want to grow rich (increase your saving rate)
  2. Use the greatest investment ally you have (invest over the long term)
  3. Small fees pack big punches (minimize fees)
  4. Conquer the enemy in the mirror (don’t make bad decisions)
  5. Build mountains of money with a responsible portfolio (diversify)
  6. Sample a round-the-world ticket to indexing (use index funds)
  7. No, you don’t have to invest on your own (choose an advisor if you need one)
  8. Peek inside a pilferer’s playbook (learn how people will try to trick you)
  9. Avoid seduction (don’t make common mistakes)

The book is clear, based on sound principles, and easy to read. Everything is explained in layman’s terms and there is very little jargon.

Despite the simplicity, you could just read this, follow Andrew’s advice, and do very well for yourself.

The second edition adds some information on investing advisors, including robo-advisors, and is slightly updated but if you have the first edition I don’t think you need to buy this one too.

Millionaire Teacher remains the first book I recommend to people, and even more experienced investors may enjoy the straightforward review of some very important concepts. After you have read and digested the contents, please pass it on to a friend or colleague. You may just change their life.

Anyone else read Millionaire Teacher? Do you agree with the review? Any other must-read books for investing beginners?​

2 Responses

  1. I’m going to be finishing it up on the train home tonight, bought based mostly on your recommendation (although I’d heard of it elsewhere too).
    It was very good, although in my case it’s mostly reinforcing stuff that I’ve already read elsewhere. Maybe you can collaborate to help him get a section on Japan in the chapter where he introduces the services in a few major countries.
    He was also on the Canadian Couch Potato podcast (http://canadiancouchpotato.com/podcast/) recently, was a good listen, as is the podcast in general.

    1. He was also recently on a 2-part podcast with Paula Pound from Afford Anything. Haven’t heard the Canadian couch potato one, but liked Paula’s interview.
      To recommendations, I think Millionaire Next Door would be my new gateway drug of choice if I wanted to convince someone to be more frugal.