Millionaires Don’t Eat Cakes. . . They Make Them


Dolly Mirchandani

The author correlates cooking with personal finance. He mentions that investing money and creating wealth that is often considered too complex and confusing is as simple as cooking food. The book is a simple recipe to transform your income into real wealth

Title: Millionaires Don’t Eat Cakes. . . They Make Them

Author: Sanjay Matai 

Pages: 140

Price: Rs. 499

Publisher: Network 18 Publications Pvt Ltd

If you walk into a bookstore, you will find that there are numerous books available on personal finance. There are abundant CDs and DVDs available in the market on this subject. However, most of these books are generally very theoretical and have plenty of jargons that are difficult to understand. Only a few books explain complicated financial topics in a simple and meaningful way.

One of them is Sanjay Matai’s, “Millionaires Don’t Eat Cakes. . . They Make Them”. The author explains the essentials of personal finance to the lay reader in a lucid manner. The book contains seven chapters and finally a comprehensive addendum at the end.

The interesting part of the book is that it correlates cooking with finance. Mr Matai mentions that investing money and creating wealth which is often considered too complex and confusing is as simple as cooking food. The book is a simple recipe to transform your income into real wealth.

According to Mr Matai, if you want to become and remain a millionaire, you must first “make” cakes before you eat them. You must first build wealth, before you think of spending. Using cooking as an analogy and portraying himself as a ‘financial chef’, Mr Matai de-mystifies the universe of your personal finance. The book presents various facets of your personal finance in the form of an easy recipe. It begins with the most basic ingredient i.e. start-up money and how to wisely use it, protect it and invest it.

The book aims to illustrate: How “income” is different from “wealth”, how wealth creators and wealth preservers aid in wealth formation, and how to become the master financial chef of your multi-millionaire aspirations. The crux of the matter is that if you are good at managing money, even little incomes can be built into big riches. But if your money management skills are poor, you may not only remain poor despite big income, but could also land up in a financial mess.

Pointing out the difference between income and wealth, the author says, “Your income will stop at some age, while your wealth has the potential to provide continuous income. Income may ‘make’ you rich, but it may not ‘keep’ you rich. Since your income can and will probably cease some day, you must start converting it into wealth.”

While talking about “Income is not wealth” in Chapter 1, the author brings out an absorbing fact that the sun’s rays are available to everyone. However, only those who focus them using a magnifying glass are able to convert it into fire. Similarly everyone earns income. However, only those who single-mindedly use a ‘wealth-magnifying’ formula are able to convert their income into wealth.

In the third chapter, “Wealth dissipaters”, the author compares buying an asset to planting a tree, which needs to grow first before reaping fruits. More the number of trees, more fruits you get. In the same way, more the number of assets you create, the wealthier you may become. Thus, you don’t have to work for money; instead money will work for you and keep adding passive income into your pockets. This is true financial independence.

Finally in the last chapter, “The Cooking Begins…”, Mr Matai stresses that both ‘diversity’ and appropriate ‘asset allocation’ in your portfolio is essential for your financial well-being. He relates balanced diet with balanced portfolio. As our body needs balanced diet which includes carbohydrates, proteins and vitamins, likewise a balanced portfolio comprises liquidity, regular return and growth.

To have a balanced diet, we need to consume rice, wheat, meat, eggs, vegetables and fruits. In the same way to have a balanced portfolio, we need to invest in bank deposits, equity, bonds and property. We also need to rebalance our financial portfolio regularly.

Portfolio rebalancing is a very critical concept and must be followed diligently. Rebalancing offers excellent benefits. It takes away emotions from your investments. It makes you sell when the markets are up which you may not have done due to greed. It also makes you buy when the markets are down which you may have not done due to fear.

Several appealing graphics have been added to enlighten the subject matter effectively. At the end of the each chapter is a recap of salient features which summarises the chapter in a snapshot. The book is a handbook for all those who aspire to be millionaires. The objective is to not only make the readers a better manager of their money, but also endeavour to materialise the multi-millionaire in them.

About the author

Sanjay Matai is an engineering graduate from Delhi College of Engineering with a post-graduation in management from Indian Institute of Management, Calcutta. He has more than two decades of work experience in the areas of management, corporate finance and investment advisory. Promoter of The Wealth Architects a personal finance portal, Mr Matai assists individuals to plan their finances in line with their needs, aspirations and risk-appetite. He has also been involved in creating awareness about the prospects and pitfalls of investing through his articles on various business portals.

Network 18 Publications Pvt Ltd

The Network18 Group is a media and entertainment company with interests in television, Internet, films, e-commerce, magazines, mobile content and allied businesses.


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