Do you realize that Bill Gates, the 2nd richest person in the world right now, with a net worth of 96 Billion dollars, reads “FIFTY BOOKS” a year? Yeah, that’s fifty. If he can make 96 Billion dollars and still find the time to read a book a week, what is our excuse?
The only difference between you and someone rich is that they already know “how to become wealthy.” And if you want to fill that gap and learn what they know, reading the right books is a great way to get there. And so, I’ve put together three of the best books to help you learn “how to become rich” and get your finances headed in the right direction.
3 Best Books To Get Rich & Become Wealthy
You may have heard of the first two books, but I can almost guarantee you’ve never heard of book number three. So, let’s start with the first book.
#1 The Richest Man in Babylon by George Samuel Clason
One of the first books I read changed my thoughts about money, investing, and saving. The book’s main story is about “Arkad,” who starts as a poor scribe but builds up enough money to become the wealthiest man in Babylon.
The book is mainly made up of short stories about the ancient Babylonian empire. These stories teach simple lessons about how to get rich.
In the book, Arkad tells seven stories that explain seven secrets about how to get rich. They’re worth discussing, so let’s look at each of the seven secrets and see what we can learn.
7 Secrets To Get Rich And Become Wealthy
1. Start Putting Money In Your Pocket
The first secret is to start putting money in your pocket. What does that have to do with anything? The main idea behind this is to pay yourself first. Even if you have debts to pay off, the book says you should save at least 10% of all your income, no matter how much you spend.
The book says you should save at least 10% of your income on student loans, credit cards, and personal loans. And the money you are putting away and saving won’t just sit in your bank account. You will invest it.
2. Keep Your Spending In Check
The second secret is to keep your spending in check. It means living within your means and maintaining your lifestyle from getting too expensive. When I first got out of college and got a “Real Job,” my friends were already buying new houses, cars, and other luxury items they could barely afford.
In the meantime, I was using my money to start businesses and invest so I wouldn’t have to work for money forever. If you spend less than you earn, save more than you spend, and make the necessary sacrifices now, you’ll set yourself up for a much wealthier and happier future.
3. Find A Way To Make Your Gold Grow
The third secret is to find a way to make your gold grow. It just means putting your money somewhere else. Start to save. Always be on the lookout for opportunities for financial growth and a return on your investment. It can be as simple as index fund investing with the three fund portfolio approach or as extensive as starting a business. Of course, any investment has some risk, which brings us to the next one.
4. Make Sure You Don’t Lose Your Treasures
The fourth secret is ensuring you don’t lose your treasures. It means you should avoid investments that seem too good to be true. I think this is more important than ever right now. With the rise of NFTs, Cryptocurrencies, and scammers pretending to be me on Instagram, it’s easy to be tricked into making bad investment decisions.
Some of the best investments people have ever made are also the most boring- Broad market, diversified ETFs, index funds, stocks, and bonds. All of these things are not even close to as fun as a board ape. I have nothing against board games, but they are investments that have been shown to make money over time.
5. Make The House An Investment That Makes Money
The fifth secret is to make that house an investment that makes money. Now, this is something that can be argued about. It means owning your home, so you can start building equity. Make sure you’ll have money in the future.
6. Saving Money For Old Age
The sixth secret is saving money for old age—plan for your old age when you are young. Time is on your side; you’ve got more energy. Use it to the fullest. The book talks about investing in real estate, land, and life insurance that will pay you for the rest of your life and even after you die.
7. It Takes More Work To Make Money
The last and seventh secret is that it takes more work to make money. It is my favorite one because it means putting money into yourself. To make more money, you must give the world more value. The more special and unique you are, the more money you make. That’s an excellent way to think about the last point. So, work on yourself. Keep getting better at things to make yourself even more valuable.
#2 Rich Dad Poor Dad by Robert Kiyosaki
The next book is titled “Rich Dad, Poor Dad,” by Robert Kiyosaki. Many of you probably already know about this book or have even read it, which wouldn’t surprise me. I would say that this is perhaps one of the most well-known books about money and building wealth. The book is mostly about three main characters: Rich Dad, Poor Dad, and the son of Poor Dad, Robert Kiyosaki.
“Rich Dad Poor Dad” Book Summary in Brief
Throughout the book, the author learns lessons from both his father (who is the Poor Dad) and the father of his best friend (who is the Rich Dad). Poor Dad went to an Ivy League school and had a Ph.D., so he wasn’t precisely uneducated or unintelligent. He had a good job, got a raise every once in a while, and had time off for vacation and sick days, insurance, and all the other perks.
But Poor Dad was never able to get ahead financially for some reason. He couldn’t get out of the rat race. The Poor Dad said, “I can’t afford it,” and that was how Poor Dad lived his life. If his job didn’t pay him enough, he would settle and say, “I can’t afford it.” He wanted a perfect house or car, an extra vacation, or more freedom.
The Rich Dad, on the other hand, was very different. The Rich Dad knew a lot about investing, ran a business, and owned real estate. The Rich Dad would never say, “I can’t afford it.” Instead, he would ask, “How can I afford it?” You see, because in life, no matter what happens, you end up with what you settle for.
If you’re happy with an average job and income, you’ll always end up with those things. If you want more out of life, you want a bigger paycheck, more chances, more freedom, and more options. Don’t settle for less if you want those things.
What can we learn from the “Rich Dad Poor Dad” Book?
The main idea of this book is to show you how to use your money to build your wealth. It’s what wealthy parents teach their children that poor and middle-class parents don’t. The book busts the idea that rich people are born wealthy. Yes, some people are born into wealthy families and are a little luckier.
Still, anyone can start from scratch and become wealthy if they have the desire and will to do so. Ultimately, the author decides to believe and learn from his Rich Dad more than from his Poor Dad. Because of this, he went on to become rich in real life.
I highly recommend the book to anyone serious about getting rich. One day, this will be something that my kids will have to read.
#3 Acres Of Diamonds by Russell Conwell
The next book on the list is probably one you’ve never heard of, and you probably won’t hear anyone else talk about it, either. However, “Acres of Diamonds” by “Russell Conwell” is one of my top three favorite books.
Now, it’s worth mentioning that another book with the same title came out in 2020. But that isn’t the book I’m talking about. Russell Conwell’s book came out in the 1890s. It is the true story of an African farmer named Ali.
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“Acres Of Diamonds” Book Summary in Brief
The book talks about how we all stand figuratively on our acre of diamonds. You might think that to be successful, you need to know a specific person, have a certain amount of money, or have a certain number of followers on social media. But you forget that those things, like money, popularity, and connections, are just side effects.
When you focus on yourself and how you can keep building your skills and value, some things happen as a result. It’s easy to be jealous of someone else’s diamond farm.
But don’t forget that you have a diamond farm in your backyard. But the diamonds will never grow if you don’t cultivate your farm. If you focus on someone else’s farm, you ignore your own. And what are your diamonds? Well, you won’t know until you grow them. Everyone’s diamonds are different. But the only way to find yours is to nurture your acre and develop your capacities for wealth.
I love this idea because it teaches us that everyone can become wealthy. Still, not everyone’s capacity is identical. To explore that path, we each need to focus on our quote-unquote “Farm.” So cool!
So, those are the three books I think you should read to start your journey to becoming wealthy. As you’re learning how to reach your financial goals, whether providing for your family, taking a vacation, or retiring early, financial education is a big part of that future. Suppose you want to educate yourself and better understand how money works. In that case, we’ve many articles explaining the fundamentals of money and wealth. Check them out.