I watched some time ago a video about the author and finally decided to read his book.
First of all, being rich has different meanings to each person. I don’t need a mansion, ferraris, 1st class plane tickets, 5* hotels, restaurants, etc.
I just dont want to worry about money in the future when I will not have the edge to work in IT and want to do something else.
I think the books doesn’t discover any magic trick. It is basic, but the funny thing, mostly people dont follow the steps in the book.
I think I have been good at saving money and not having debt, but I was always scared to invest, as I didnt want to pick stocks. But as I discovered by him, you can invest in index funds. I am looking in the long-run. The only good thing I have done regarding investment was to put money in my pension pot.
- Study your expensive. Make a conscious spending plan: Fixed costs (rent, utilities, debt, 50-60%), Investment (pension, ISA – 10%), Saving goals (holidays, xmas, house deposit, wedding, emergency, 5-10%), guilt-free spending (dining, party, clothing, 20-35%)
- Credit cards: pay your debt. find out why you are in debt. I hate credit cards. I know you can get nice perks from them but it is not for me. My expending habits, doesn’t make sense, apart from buy long-haul plane tickets. If you need done, at least, get the one with less interest.
- Open an account with high interest rate. Automatically put money on it.
- Put money in your pension pot. Max up as much as you can your tax-free allowance. Use automatic transfers.
- Find an investment fund in Vanguard. Dont pay high fees in managed funds!! They are a rip-off. Good source of advice danielsolin and ronlieber. Make automatic transfer into them.
- Review your system once a year.
If you have most your savings/investments automatically, the money left is the one you can spend guilt-free. You decide what a rich life means to you.
Honestly, these kind of things should be teach in school or at least in univerisity.
Money represents hard work and luck