How do I start investing?
I believe many of you out there have some desire to start investing, you probably know that investing can help you make money outside of your daily job. It is also very likely that many of us, including me, do not know where and how to start investing. If you’re someone who is interested in starting your investment career, but don’t know where to start, I personally suggest you Rich dad poor dad by Robert Kiyosaki.
This is the first book on investing that I ever read and is also the book that made me decide to become an investor as well as gave me a different perspective about making money. Even if you aren’t interested in investing, I still suggest you read the book. Why? because it will change your mindset about money and your own financial situation. Reading this book will definitely be beneficial to you even if you aren’t looking to become an investor.
Disclaimer : If you buy it on Amazon I will get a commission because it is an affiliate link
Why do I recommend Rich Dad Poor Dad?
I will be honest here, this book won’t give you the technical knowledge to invest in stocks or something, this isn’t a step by step guide that teaches you how to invest. What this book will do is that it will change your mindset. I’ll give you a good example, in the book Robert asks the readers what is an investor. Have a think. What would your answer be?
Before reading the book I thought investing in stocks, for example, means buying stocks online and selling them when the price go ups. Well guess what? I was wrong. This is trading. An investor would buy something to use, while a trader buys something and hopes it goes up in value. The book will teach you how to think like an investor, and provides some examples of why a deal is a bad investment or a good investment.
In the book, Robert also simplifies what you need to do to get rich. All you need to do is acquire assets and the problem that many of us face is that we don’t know how to indentify one. Is your house an asset? An asset should be generating income for you, if your house does not do that then can it still be classified as an asset? This book explains how to determine if something is an asset or a liability. It may sound simple but many of us can’t do this because of the way we think.
The book also tells you about the difference between what the rich people do and what poor or middle class people do. It explains how rich people can generate passive income while normal people have to actively earn their money. It touches on good debt and bad debt, how the middle class or poor would have a lot of bad debt while the rich have good debt.
The most powerful message to take away from this book, for me personally is investing. No, not investing to earn money but investing in yourself. Reading this book will help you understand that wanting to become a successful investor requires a lot of knowledge and hard work. One shouldn’t dive head first into investing without doing their homework to avoid losing money.
There are many core messages in the book, many lessons to take away from it. The great thing about this book is, you can be a total beginner and still get alot out of it. I believe this book can help be the foundation to help build your success in investing. Take this book as a starting point, because once you fully understand the concepts your mind will be ready to enter the world of investing.