Saving money won’t make you rich – This is what Robert Kiyosaki taught me
What happens when you take a sheet of paper and you fold it in equal halves.You repeat this several times until you reach a limit when you no longer can fold it
What happens when you take a sheet of paper and you fold it in equal halves. You repeat this several times until you reach a limit when you no longer can fold it.
Will there be any difference in the sheet you have after folding it in equal halves for so many times maybe 5 or 6, it will get thicker than before, right?.
Now imagine what would happen if somehow you manage to fold it for 16 times. I know it is not possible but if somehow you did, then you will find that the thickness of the paper is the same as the distance between the Earth and the Sun.
Now just replace the sheet of paper with the money you save, imagine the return you will get after some time? This, my friend, is the magical power of compounding!
Finance has always been an issue for everyone, no matter how smart you are or how high paying job you have but unless you are financially literate you won’t be getting exactly what you want. With the current education system, it’s quite ironic that we are taught nothing about money but our ultimate aim is to earn it and satisfy our needs.
Just like report cards ensure that we are academically good and capable of going ahead, financial report card i.e. our balance sheets and income statements which includes the money we earn, spend and give it to the government in the form of tax ensures that we are capable of living our lives well, getting what we want. So it’s very important to build a good financial report cause.
You can be young without money but you can’t be old without it. You’ve got to be old with money because to be old without it is just too awful, you’ve got to be one or the other, either young or with money, you can’t be old and without it. That’s the truth, Brick…
So, when you save your money you won’t ever be rich, but when you invest it when you understand the value and power of compounding you surely will be better off. Now, this lesson is one of the most valuable lessons I have learnt from one of the best books in business, Rich Dad Poor Dad by Robert Kiyosaki.