A long time ago I read the book "Rich Dad Poor Dad". I do not remember much of what I read. The only thing I understood clearly "To become rich you have to spend money. Hardly anyone has ever become rich by saving money."
At the time, it seemed very stupid. I mean it was 1998. My dad was driving Premier Padmini. His friend had just bought the first model of Maruti 800; sky blue color. He gave me the keys to go for a spin. Obviously, he was my favorite uncle for years to come.
In those days, the idea of spending money to become rich seemed alien. Our parents knew each Diwali what they wanted for next Diwali. Cause they'll save accordingly for the whole coming year. Saving was the only way to be rich, feel rich.
About 10 years ago I chanced upon the book once again. I did not read it but recollected the only thing that stayed behind from it. And I realized how true it was. I was in my 3rd year of investing in Mutual Funds. By that time, I had already seen a return of average 12%.
Today, 10 years later, I have met most of my goals. Have a decent house which will be paid for in another 2 years, retirement fund looks pretty decent, children's education seems secure.
All this was possible only when I started "spending money". Not in frivolous things but in mutual funds. I admit first year seemed difficult. There was often times when I thought I can use this money for something else, a holiday maybe or a new television and make "today" more enjoyable. Nothing wrong with that.
But looking back, I am glad I was persistent and had a long term vision. I encourage everyone to consider "spending money to make money".
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