How to Become Rich
Lessons from Successful Sellers
How to Become Rich
Some good reading is always gratifying because what we read influences our thoughts which in turn defines our actions. Readers often refer books for teaching them copious lessons that have helped them either in illuminating them or in adopting a new habit. For the prospect of personal finance, which is so dear to us, a good read can be benefiting. Taking the que, here are takeaways from five best-selling books on personal finance and wealth creation, offering great insights on how to become rich or habits to be practiced for the goal of wealth creation.
The Richest Man in Babylon by George S. Clason
The Richest Man in Babylon is a collection of financial advices delivered in parables format. In one of the popular parables from the book, the protagonist says "I found the road to wealth When I decided that a part of all I earned was mine to keep." It simply means that all we earn is not for us to keep, rather we must keep only a part of it and rest should be invested with the goal of wealth creation. Likewise, there are various important lessons to learn and practice from this book, if one desires to be wealthy.
1. Control thy (your) expenditures: So that you can save and invest
2. Make thy(your) gold(money) multiply: Put your money to work for earning interest
3. Make of thy(your) dwelling(house) a profitable investment: Instead of paying rent, rather pay loan EMIs for your own home as it will build you one asset
4. Ensure a future income: Insure second income, so that family's financial stability doesn't get compromised even if in future you are not there to make incomes
These are some of the parables from the book that are very much doable and one can easy to practice in our lives to become richer and wealthier
The Millionaire Next Door by Thomas J. Stanley and William D. Danko
The book is a research-based piece of content that is considered as a classic in the domain of personal finance. It talks about the key steps that have enabled people to become rich. These key steps are:
1. Spend less than you earn
2. Avoid buying status objects
3. Take the financial risk if it is worth the reward
4. Family and Generational Wealth
The book put insights into major loopholes that restrict one from creating wealth. 'Spending tomorrow's cash today' has been pointed out as one of the causes of debt and a lack of high net worth.
Rich Dad, Poor Dad by Robert T. Kiyosaki’
A great book that advocates the importance of financial knowledge, intelligence and aptitude that eventually helps one in creating wealth by investing in financial assets, real estate investing, businesses start-ups, etc. The book talks about 'THE CASH FLOW QUADRANT' that is made of four different types of people. First quadrant is 'E' means employees, the second quadrant is 'S', which means the small business owner, the third is 'B', which means big business and last is 'I', which strands for Investor. People belonging to 'Investor' quadrant strive for financial freedom and liberty by making their money work hard for them.
How Rich People Think by Steve Siebold
This book is special because its author has spent more than 26 years interviewing 1, 000 billionaires and millionaires in his attempt to figure out How Rich People Think or how their thinking is different from an average person. It offers concrete action steps to follow as an ambitious person willing to build wealth. The conclusion to be drawn from the book is to become rich, one must think like a rich person. Even if one may not aspire to be "rich," but he/she should want to become better at managing money. The book highlights interesting and worth considering traits or attitude of wealthy people. They focus on earning, they believe money is simple, they think about investing and about acquiring financial freedom.