La Chèvre de Ma Mère

The Goat of My Mother - Ricardo Kaniama

This book, "The Goat of My Mother", tells Ricardo Kaniama's personal story of going from poverty to becoming a millionaire by building capital from small savings, using his mother's wisdom as a guide. A helpful book for the youth trying to achieve financial freedom.

By reading this book, you'll:

• Learn how to build wealth regardless of your income.
• Understand the vital role of saving in building wealth.
• Break free from the cycle of poverty and achieve financial independence.

Core Content:

1. Key to Prosperity: Building Capital Instead of Waiting

• The author emphasizes building capital with available resources rather than waiting indefinitely for outside funds.
• Inspired by his mother's story, he aims to help people understand wealth creation and take control of their financial future.

2. Mother's Wisdom to Wealth Creation

• The author draws a parallel between his mother's goat and having capital: the goat was her capital, her wealth. Spending money for immediate satisfaction is like killing the goat, ending its potential for future offspring.
• He encourages readers to save 10% of everything they earn to become financially independent.

3. Identifying with The Goat

• The author divides habits with money into 3 categories:
  • The Stepmother: People who spend all their income for consumption and find there's not enough money, as their "goat" dies of the inability to procreate
  • The Cousins: Describes the middle class, those who have higher income but do not consider saving, instead gaslighting their incomes into luxuries. They live as if their goat herd is immortal, until a problem arises
  • The Mother: People who save parts of their income to constitute investment capital and prepare themselves for problems or increased income, by letting their goat herd rise and be prepared for issues

4. Levels of Wealth: From Poor to Rich

• He explains various financial habits and advises readers to consciously decide to change their habits to climb the "stairs" out of poverty.
• Each type is defined as:

1. Chronically Poor: Spend more than they earn, increasing debt (Revenues < Immediate Expenses, Results in: Debt). The remedy to start climbing the stairs is learning to spend less than they earn
2. Balanced Poor: Spend all they earn, without savings (Revenues = Immediate Expenses, Results in: No debts). The remedy to start climbing the stairs is learning to save a portion of the earning for investment
3. Average Poor: Save a portion of earnings for specific needs (Revenues = Expenses + Savings, Results in: money savings). The remedy to start climbing the stairs is learning to save a portion of the earning for investment
4. The Rich: Consistently dedicate at least 10% of income towards investment (Revenues = Expenses + 10% Investment Savings, Results in: a funds investment). By investing in income, the person grows

5. How the Goat Changed the Author's Life: Personal Experiences

• The author shares his journey, from earning $15 a month to becoming a millionaire.
• By following the principle he learned from his mother, he built his capital bit by bit and achieved financial freedom.

6. Saving Strategies

• Listing expenses: List out any place you can cut prices and improve.
• Decreased spending: Try any method you can to cut down the average spend without cutting down your necessities.
• Cut off people who make spending temptations: Bad influences are everywhere, keep the good ones close!
• Invest 10% of your income, even if it seems like too little: Let every little bit help!

7. Is Saving Really That Simple?

• Although the concept sounds simple, lack of discipline and overspending habits can make saving difficult.
• The author shares strategies that helped him adhere to the saving principle and build his financial empire.

8. The Importance of Financial Literacy:

• The author emphasizes financial literacy to distinguish profit from debt.

Q&A

Q: What is the story of the goat of my mother?

A: After the death of the author's father, the family lost a significant amount of wealth, and his mother received only one goat as inheritance. Instead of slaughtering the goat for immediate consumption, she chose to let it live and reproduce, eventually leading to a whole herd.

Q: What is the main concept in that story?

A: The main meaning is that a herd can come from just 1 goat, which is likened to saving and investing in order to come out of a problem

Q: I have a partner and my bills already take up all my expenses - How do I save?

A: The author's recommendation would be to review current prices and reduce excessive spending from the household, as well as create a business of the household by renting rooms out or renting parking spaces. Let the investments help the household as the household builds on it's own.