Sometimes the best investment is a book.
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and thought it was worth the entire $6.99 price I paid for the paperback version. The book explores a lot of simple wealth building lessons that most people are familiar with, but never apply them to their lives. Even if you’re familiar with the concepts, it’s still an extremely refreshing read.
The best thing about the book is that it has money lessons that apply to basically everyone (which is why it also makes a great gift). One of the big lessons and most simple in the book is the 10% savings plan. You basically save 10%(or more if you can spare it) of your earnings every month and make due with the rest. Generally you won’t feel the loss of the 10% less cash each month. The whole premise of this plan is to change the fact that some people work years and years but have nothing to show for it.
Let’s say your salary is 60k (I chose 60k because it divides into 12 nicely for purposes of this example). You’d would getting paid $5000/month and 10% of that is $500. Stashing away $500/month at 5% for 20 years would net you $203,728.83. See how a simple 10% savings plan can build up a sizable nest egg? If you were willing to aim for higher returns with riskier investments (stocks, beanie babies, etc.) then 10% would net you $361,993.16. Increase the time frame and the figures grow exponentially.
The plan isn’t designed to attain super wealth. It’s a universal concept that anyone can apply their own life. So yes, I consider my $6.99 “investment” in this book worth it. You can probably get it cheaper used or see if your local library has a copy.
2 Responses to “Sometimes the best investment is a book.”
I read this book last year and found it pretty entertaining. It was very basic material and felt elementary coming from the author but I would recommend it to anyone due to it being a short and easy read on sound and simple money management principals.
By Brian on Apr 13, 2007