Customer Reviews

The Flow of Time and Money: How to Create a Full and Prosperous Life

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'THE FLOW OF TIME & MONEY',
by Lloyd Watts

At first glance & based on an initial cursory read, the author of this book seems to take the opportunity to ride on some of 'Rich Dad, Poor Dad' Robert Kiyosaki's cash flow ideas.

However, following a deeper level of reading, I find that the author has given readers a new spin, drawing on his 32 years' of self- study & personal experiments, by introducing a refreshing visual approach, with simple but well-illustrated flow diagrams to capture his many wonderful thoughts about the systems perspectives of life, money & time.

Although the stuff in the book is not exactly revolutionary, I certainly like his intertwining concept of the flow of time & the flow of money, & in particular, the investments in life assets (education, relationships, health & organisation) to sustain material assets.

His concept of 'triggered expenses' (the image of a leaky bucket really jolts the mind) that most people don't realise is really a wake-up call. I honestly didn't think of that.

Undoubtedly, how we spend our time & our money determine our destiny. The counter-point to this harsh reality is that the principles of time & money are still not taught in schools, & sad to say, most of us, including yours truly, have entered adulthood without a clear understanding of how to live to our full potential.

As a matter of fact, my own understanding on how to take control of my income, expenses, & wealth came about only when I was in my early forties.

I was fortunate in a way that I had bumped into a book by Joe Dominguez & Vicki Robin, entitled 'Your Money or Your Life: 9 Steps to Transforming Your Relationship with Money and Achieving Financial Independence'.

In my personal view, the author of 'The Flow of Time & Money' has very beautifully brought to life, through his lucid explanation of why we struggle financially, why we fall for hidden debt traps, & how we can lay out the pathway to financial independence, planet Earth's friendly genius R Buckminster Fuller's original concept of wealth building in terms of time, not in terms of money - how many days into the future you can live on what you have. The author calls it aptly, survival time.

My personal favourite chapters happen to be the last few, at the end of the book: 'Realising Your Dreams' ("taking the long term perspective, with sustained yet intermittent effort, building empowering habits, staying focused") & 'Contributing to the World' ("how do you want to be remembered?").

I reckon, in a nut shell, these are the vital aspects that truly make our mastery of time & money more spiritually engaging as well as more personally meaningful.

In the end analysis, all I can say about this book is that it's definitely an ideal book for those seeking lasting commitments to achieving wealth & personal fulfillment.

Best of all, with 100-odd pages, it's breezy to read because of the many easy-to-understand graphic illustrations.

[Reviewed by Lee Say Keng, Knowledge Adventurer & Technology Explorer, February 2009.]

Lloyd Watts will help you make a plan to achieve financial independent and have a fulfilling life. The execution won't be easy, as you will need to make some sacrifices, but it works.

The Flow of Time and Money is probably one of the most practical and useful book in teaching on how to create a full and prosperous life. It tells you as it is, i.e. the truth, both the good and the "bad" (the sacrifices that you will need to make), to be successful. I've been doing most of what is written in this book for more than 10 years, and I know it works. Another good thing about this is that you don't have to be a genius or have a very high salary to achieve financial independence, however You do need to have some understanding about basic financial education, which is not a rocket science. In fact, it's all common sense. This is the kind of book that I've been waiting to see out there to help other people (and this is probably the kind of book I would write if I'm writing a book to share on how to achieve financial independence and to create a fulfilling life)

Now about the content of the book. It is very practical, and easy to understand as the author (Lloyd Watts) includes a lot of illustration to explain most of the concepts

Some of the critical topic of this book:
1. The concept of Money, Time, Life, Wealth and how they are correlated to each other.
2. Reasons why we might be struggling financially (who doesn't anyway in this kind of economy? 2008-2009 :))
3. The traps and why we fall to the traps
4. The path to financial independence
5. Realizing your dreams and having a long term perspective
6. Contributing back to the world

Key attitudes for people to achieve financial independence:
1. Lack of need for external indications of status
2. Ability to defer gratification
3. Strong financial education
4. No fear of numbers and accounting
5. Commitment to lifetime learning
6. Health financial responsibility in a relationship
7. Acceptance of wealth
8. Ability to make sustained and intermittent effort.
9. Ability to manage risk

In general what I like about this book:
1. Practical. It dives into the core problem or principle.
2. Includes a lot of guidance on what other book to read if you want to choose a specific path
3. It listed many ways to build wealth (so many people can relate/use as everyone have different specialty/talent)
4. Not a get rich quick scheme (which usually fail to live to it's promise which is too good to be true to begin with anyway)
5. It explain in very detail the importance of passive income (let your money work for you)
6. It explain in detail what the long term impact of "borrowing and spending" (and why "saving and spending" is not enough)
7. How to make the transition and transformation of where you are today towards the wealth building path
8. It includes the "giving back to the community" and make it a holistic view of a fulfilling life
9. It emphasize the importance of investing in yourself

What could make this book even better:
1. More real-life examples to explain the concept further (e.g. someone making $50,000 per year, what their wealth will look like for a certain expense/saving/investment level after 5 years, 10 years, 15 years, so on so forth. or other example of regular/average people that uses some of the method in this book and is successful. To be fair, he did explain his experience but I think he is one of the outlier/very sucessful case)
2. More detail explanation many of the topics/suggestion in addition to referring to other books (but to be fair, that might make the book a lot thicker and harder to read)
3. One other downside is that we will need to read some other books to understand many other important items/details mentioned in this book (which are also referenced in this book, which is good)

In conclusion, this is a must read if you are interested in beating the rat race and want to have a fuller and more prosperous life. I know from personal experience that the principles and suggestions from The Flow of Time and Money works. It's not easy to do (because of the sacrifices that needs to be made) but it works. And it's all common sense in my opinion. My final thoughts, I think the three first steps that are key to success (especially at the beginning of your journey) are to control your spending, have the strong will to defer gratification, and have some basic understanding on financial education. And along with those 3 things, you should also work hard and have high integrity which I think helps.

All the best,

Sidarta Tanu

This book was OK. It was short (less than 100 pages if the blank pages are deleted), simple, and clearly written. I can't in good conscience give it a 4 or 5 star rating because it was just too short to even be called a book. And, I repeat AND, it was a complete rip off of "Rich Dad Poor Dad" (ISBN: 9780446677455). Maybe the diagrams look a little different since Kiyosaki, the author of RDPD, has trademark protected them. But in substance the instant book being reviewed is a "cliffnote" to RDPD.

The action plan found in this book and in RDPD is as follows:

1. During your youth take your education seriously; Do the best you can
2. When you take your first job use your education to get it
3. Make sure you work at a job where you can live way below your financial means
4. Don't waste what you earn; Save some, and invest some
5. Invest enough that you can live off your investments
6. Quit your job when you can afford to do so (the sooner the better)
7. Build an investment empire & enjoy life while you do it
8. Become a philanthropist if you can

Yesterday (1/10/09) I read the following quote by Thomas Friedman in the Op-Ed section of the New York Times Online edition entitled "Tax Cuts for Teachers:"

"You see, even before the current financial crisis, we were already in a deep competitive hole - a long period in which too many people were making money from money, or money from flipping houses or hamburgers, and too few people were making money by making new stuff with hard-earned science, math, biology and engineering skills."

I cite this quotation because it points out that few people are making money by making new stuff. And the real road to wealth and financial security is by doing just that - making new stuff. The 8 step action plan presented herein above will help you get wealthy and financially secure. But it is the making of new stuff that people want and need that will make you truly wealthy. If this book had emphasized this point more and made the 8 points above a sideshow, then I would be raising my rating considerably. But all we've got here was a "cliffnote" to RDPD. 3 stars!

This is the most concise personal finance book (I have read over 100)that shows how to change your money flow from and endless cycle of "Save and Spend" or "Borrow and Spend" to how to instead spend money on obtaining assets that create cash flow. The diagrams using buckets and flows of water really hit the mark and I think anyone reading this book will walk away with that image of money flowing in and out of their lives with nothing to show for it. He explains that living below your means frees up money that can be put toward, stocks, bonds, real estate and businesses. Also looking for deals that will make you money is a much better use of time than getting more toys like new cars and huge houses that add more expenses in insurance and upkeep.
Also time is also viewed as a valuable asset that should be spent in areas of furthering education, relationships, health, investing, and organization. This investment will reward you in all areas of your life.
This well written book with excellent principles is a great place to start if you are beginning on a path of financial independence. I have followed the principles the author teaches in this book for the past 15 years and have gone from poverty to a mid six figure net worth, no debt (Except a house) and a few years away from financial independence all before the age of 40. IT WORKS!!!

Further reading:
"Your money or your life" by Joe Dominguez
"Rich Dad, Poor Dad" by Robert Kiyosaki
"The total money makeover" by Dave Ramsey my favorite that lead me through the past 15 years. (However I do not agree with his buy and hold investing)

Many opinions have been put forward regarding the recent global economic downturn; one commonly mentioned is that the consuming public spent beyond their means. While it is clear that this is not the only reason for the problems, it is a major contributor. Using charts, graphs and textual explanations, Watts puts forward a simple yet effective description of how a person can survive and even thrive to achieve some level of financial independence and security.
It begins with the simple of act of considering saving as an investment rather than as stockpiling for greater desires. In other words, don't save your money just so that you can buy the bigger luxury item, but save your money so that it can be invested in something that will give a return. In other words use your money to make or save money. Granted this is simplistic, but achieving financial security is a simple task. Either you earn more money or spend less, the only other possibilities, such as inheritance or winning the lottery are most unlikely.
Above all, like nearly everything else that can be achieved, it takes self-discipline to create and retain the wealth that you desire and need. Watts cannot provide that, no one can as that is internally generated. What he does give you is within the limits of possibility, sound and simple advice for how to get started.

This book gives amazing advises of how to be responsible with our financial life and - actually - become rich - by making the right choices of what to do with our employment income. It reminded me a bit of "Rich Dad, Poor Dad", but "The Flow of Time and Money" is much easier to read and to understand. Short, with clear concepts, neatly exposed and organized, this book became actually my handbook of how to accumulate wealth! Like Ray Kurzweil, I believe it is a must read for everybody who wants to have consciousness of were we stand in our life financially, and what to do about it; when we actually feel, we deserve much more then what we have so far. Good news: it is suitable for EVERY age. Thanks you, Mr. Watts!

You could say that many of the ideas in The Flow of Time and Money by Lloyd Watts are "just common sense". Take a look around us. There are LOTS of people out there who need this kind of advice. If showing them step by step line drawings with water buckets and water going in and out can get them to realize what is going on, I'm all for it.

Lloyd really does start easy. Imagine your income is flowing into a bucket, and a hole poked in the bottom represents taxes and expenses draining you. If you lust after bigger houses, bigger cars, and so on, you're poking a gigantic hole in your bucket. That's not going to lead to more wealth. It's going to lead you to more stress. You'll constantly be trying to get more and more money for your larger and larger desires. When you get that bigger house, you'll want more furniture. These items actually cause you to *spend* more money.

Instead, the key is to focus on *modest* items for now - car, house, etc. - and put all the "savings" into investments. Your goal is to quickly grow those investments to a level where the investments themselves provide you with an income. So let's say that takes you 10 years. At that point you no longer have to work. You are living off the investments. You can now spend your 'free time' invested in whatever dream you want.

Too many people chase luxury before they have the money. They rack up debt on credit cards and then are trapped in a lifetime of agony. Lloyd simply says - DON'T DO IT. Live frugally at the beginning. It's not fun, but it's possible. Only use debit cards. Similarly, don't save up your money and then promptly spend it all. Don't create a cycle of save-spend-save-spend where you end up with nothing again (and a house full of dust-gathering toys). Instead, make that effort to invest. In a few years you'll have both a steady stream of income and an established skill at living within your means.

Lloyd emphasizes that you have to keep learning. You can't just sit back and expect the world to shower you with cash. Read books, watch videos, find mentors to guide you. Become active in your own destiny, and make sure your money is doing the best it can for you.

Make a goal, and then lay out distinct steps to get there. Work on those steps regularly. You need to take that first step!

I do have a few issues with the book. First, it pushes a certain website and its merchandise pretty heavily. I find that annoying in a book. Next, it is very geared towards becoming a landlord. I have NO interest at ALL in that path. I know me, it would cause me far too much stress. He does mention briefly that there are other paths - running a business, creating books or music, etc. - but he barely talks about them. I'd like to see more information on alternate paths.

Still, minor complaints in a book that provides information that many people desperately need to suck in. We *all* have only 168 hours in a week. How do we spend these precious moments? We *all* should know what our current "survival time" is based on our savings. If we lost all income, could we last a month? Three months? It's critical we are well grounded in our financial situation and have plans to improve it.

My final comment is that I know many people are burned by credit cards, and I understand for those people that cutting them up may be the safest option. However, what I do is have all rewards cards with no fee. I then funnel ALL my purchases - including utility bills and such - through those cards, then pay them off every month. First, I get tons of rewards rolling in for things I already have to buy. Second, because the card payment is due later than the actual bill is, I get "extra interest time" on my money. That is, say my electric bill is due on the 15th. That auto pays to my credit card. Now my credit card is only due on the 30th. So I just got 15 days free float, 15 days my money earns interest before I have to pay it in - all for free. If you have the self control to always pay all your credit bills on time (I have them all set to auto pay) I definitely recommend it!

I really appreciated the way he was able to simplify these concepts in a way that can really change the way you view your time/money.

Dr. Watts does the remarkable by presenting useful and philosophical information in a concise little book at once readable and re-readable. Early in his book he remarks that people are not taught the fundamentals of financial management [or time management] in school...and this is true. He uses easy to understand, even simple, diagrams of leaky buckets to show clearly what he means by the "flow of money" and the "flow of time." He also gives clear steps as to how to transition from middle class to financially independent, and these are good, sound steps. Not easy ones by any means, but do-able for most. I especially like his philosophical moments - his asking the question: what kind of legacy are you leaving to the next generation, to the world? In their book, "Why we want you to be rich," Robert Kiyosaki and Donald Trump make the case for the disappearing of the middle class...Dr. Watts makes the case that being middle class simply isn't enough; and, given the current economy, it isn't for many people. He gives ways to transition from middle class to financially independent and shows how the money flow in that transition will change the time flow - how we spend our time working 40 to 80 hours a week changes dramatically when we no longer have to work. The answer? Passive income. This is a book anyone can grasp.

The Flow of Time and Money by Lloyd Watts, PhD is a little book that is just simply chucked full of wisdom. I thought it was quite remarkable that such wisdom, basic one would think, could be condensed into such a small package and be so readable and accessible. This is one of those books that every young woman and man should be required to read before they hit the real world after graduation.

Watts has given us sound advice in creating a full and prosperous life. This is not a work addressing nothing but investment strategies. This type of book is dime a dozen now days and they all say the same thing, but are just worded a bit different. No, Lloyd Watts includes the importance of saving and investing not only our money, but our time, education, effort and priorities. His concepts are simply, but are so very effective if one just took the time and effort to read and heed them. I suppose I was partial to this work as the author's concepts agree with many of mine; concepts that I have been following for well over 60 years now. The difference is that Watts is able to articulate these concepts, whereas I am not.

Simply written, this is not a work of complicated strategic planning that would take at least an MBA to figure out. This is a work that the average person can pick up, read and actually glean useful and I must say, important information from. Like any good advice though, a person needs to follow it to reap the full rewards.

This is a quick and gratifying read. I dare say that even the most jaded will be able to pick quite a number of tidbits from its pages and see instantly how they can be put to use in their own life. To be quite frank, had we Americans followed the logical advice given in this work, we would not be in the trouble we are in today, and that goes from the top down.

Highly recommend this one.

Don Blankenship
The Ozarks