A month ago, I was contacted about doing a book review for an oddly-titled book, Killing Sacred Cows. With a title like that, how could I refuse? Initially, I was taken aback by some of the claims and ideas author Garrett B. Gunderson proposed, but as I got deeper into the book, I began to see the underlying message and threads of truth.

The biggest problem I had with the book – and the same problem many of you will have – is that the author focuses on tearing down some of the strongest myths we’ve used to prop up our personal finance ideals. While I have prided myself lately on smart saving, frugal living, and minimizing expenses, this book tries to show that these aren’t ways to wealth. Instead, smart spending, living to your true purpose, and maximizing cash flow are the prescribed means to finding wealth.

I winced a bit as I read the first few chapters. It’s hard to hear that you may be doing things wrong… But as I delved deeper, the economist inside of me started seeing the truth in the author’s suggestions. Now, the application of that truth will be harder to manage for some, but the truth is there.

Each chapter sets about to examine then refute one of the firmly-entrenched myths in our financial society:

1. The Finite Pie – The myth that the supply of money is finite and that you’re only “winning” if you collect and hold as much as you can.
2. You’re in It for the Long Haul – The myth that the best way to plan for the future is to sock away every penny you can now and let compound interest fund your retirement.
3. It’s All About the Numbers – The myth that the numbers on your balance sheet describe your true wealth.
4. Financial Security – The myth that financial security comes from staying safe and collecting a salary.
5. Money is Power – The myth that more money brings you more power.
6. High Risks = High Returns – The myth that you can only expect a chance for high returns if you accept high risk.
7. Self-Insurance – The myth that insurance is an expense you should minimize and try to not ever use.
8. Avoid Debt Like the Plague – The myth that all debt is bad and should be avoided at all costs.
9. A Penny Saved is a Penny Earned – The myth that minimizing expense and buying the cheapest possible is the best way to save.

While the book is a great resource and I always encourage people to challenge their beliefs, I do not agree with all the advice the author provides in his book. For instance, instead of focusing on saving for the long term by building your 401(k) and watching your net worth, the author claims that building a positive cash flow now and focusing on what the author calls your “Soul Purpose” is the best way to deal with the future. I agree that cash flow is important and a positive cash flow is the best way to wealth, I disagree with the concept that one should avoid 401(k)s and savings accounts. Just like an emergency fund, these resources can help provide temporary cash flow when the usual streams dry up. I think it’s irresponsible to neglect saving, even if it means you’re “losing” money to inflation and under-utilized resources. I suppose I’m just more of a moderate than the author in that regard.

Overall, I enjoyed the book and it’s definitely worth the read. Like I said before, I think it’s a good idea to read and entertain ideas that challenge your beliefs – as long as you don’t go overboard and accept everything you read as the best truth for you to follow. I will certainly keep the ideas and recommendations proposed in this book in mind as I make financial decisions in the future.

If this book sounds like something you’d be interested in, visit the book’s companion site, http://www.killingsacredcows.com, and download the first two chapters for free.

Want a Copy?

I was able to secure a second copy of the book to give away to my loyal readers. I figured if I was intrigued by the book, you probably would be, too. So, if you would like a copy of Killing Sacred Cows. for your own, here’s what you have to do:

• Leave a comment below about one of the myths listed above. You can say which one you might have the hardest time letting go of, if you don’t think a listed myth is actually myth, or something else as long as it pertains to one of the above myths.
• One entry per person. Feel free to comment all you want, but only one entry will be accepted per valid e-mail and IP address.
• Contest open to US residents only. Sorry, I know that I have many international readers, but various laws and such make it much to frustrating to open this worldwide.
• Contest will end Sunday, December 7, 2008, at 11:59pm Central Standard Time. On Monday, December 8, 2008, I will announce the winner who will then need to contact me to claim their prize. Good luck!

(c) 2007-2009, That One Caveman, http://www.thatonecaveman.com