When it comes to self-help guides, the older ones can often be the best. There are books out there from more than 50 years ago that provide incredible insight about how people can live their lives to the full. Rich Dad Poor Dad by Robert Kiyosaki and Sharon Lechter is one of those offerings that will be useful for centuries. The 1997 title could be considered one of the greatest options on the market for people who are in search of money-saving advice.
Highlights the Importance of Saving for the Future
The problem that many people face in life is that they leave school and realise that they never received a proper education about money management. Yes, there are bits and pieces of advice that get trickled down, such as the need to get a mortgage. But when it comes to having a firm plan, many people feel like they’re lost at sea without a paddle.
This is one of the key messages of Rich Dad Poor Dad. The authors talk about how they received different life lessons from the two titular fathers, and one only one of them knew the correct way to plan for a future of wealth. It highlights how more people grow up hearing the lessons of the Poor Dad and are unaware of the things they need to do to lead a life of abundance.
An example of this is the need to buy a house and get a mortgage from a young age. By doing this, you don’t have to spend money on rent and, instead, you put cash away every month in an investment that will appreciate. Anyone can use the internet to see if they are eligible for a mortgage and see the results in days. Trussle is a great example of a fast mortgage broker that can deliver the all-important news to homebuyers within five days. If you’ve been toying with the idea of buying for a while, it might be wise to bite the bullet and go for it.
Other Key Lessons From the Book
Rich Dad Poor Dad advises readers to get a mortgage on a house, but this is the only form of debt that it recommends. Indeed, it implores the reader to steer clear of any long-term financial obligations that will not produce returns after a fixed period. For example, financing a car for six or seven years would not be considered a sound investment.
The other main point of the book is in the magical compound effect over time. People who begin putting a portion of their salary into a savings account with compound interest from a young age can be millionaires by the time they retire. There are anecdotes in the pages about this, but if you are unsure whether to believe it you can check with a compound interest calculator.
For the most important lessons about how to save money and prepare for the future, Rich Dad Poor Dad is up there with the best. Some other useful books that savers could read include The Automatic Millionaire by David Bach and Money: Master the Game by Tony Robbins.
Rich Dad Poor Dad is a feature post