Financial Advice: Lessons from Pros of the Past and Present

Do you turn to the investment shows and magazine articles for tips on what the next big thing might be to invest in? If you do, it’s a terrible idea. Any idea that’s well-enough recognized to make it to television has already been done to death and picked clean. It’s well-known advice that comes from Neale S. Godfrey, the writer responsible for Money Doesn’t Grow on Trees, a well-loved financial advice book that was first published 21 years ago.

If you looking for quality advice on making it financially, it actually makes sense to go with old advice — something that’s stood the test of time. Looking for advice that’s been around a couple of decades and is still remembered, quoted and talked about is bound to be a rule to live by. If this seems like an idea that makes sense, here are a few tips that answer the description.

To begin, what does Neil Godfrey’s advice mean?

The idea that you can watch shows and read magazines for investment tips is a widespread one, and it invariably gets people into trouble. It’s important to understand that you don’t want tips. Tips are no use when you don’t know what they are worth, and they apply to you.

What you want, instead, is the ability to understand the way things work so that you can generate your own ideas, or at least evaluate the ideas that others pass to you. Putting your own ideas together with advice from a professional financial advisor is a recipe for success. If you have your own knowledge to rely on, it isn’t even necessary to pick a personal advisor. Busy and competent professionals are able to use CRM software for financial advisors to efficiently handle multiple clients.

Robert Kiyosaki, author of the Rich Dad, Poor Dad

When Rich Dad, Poor dad came out in 1997, it immediately became memorable with wonderful advice that has been repeated countless times ever since — whenever you borrow to do anything, you need to think about whether it’s a good debt or bad debt. Good debt is money that you borrow to invest with. Bad debt is money that you borrow to spend, and see disappear. It’s a clear rule that anyone can apply to everything they spend. It’s an excellent mental tool to hold on to in this era were everyone continually goes overboard on their credit card holding onto this advice, everyone is likely to begin thinking about how money and

Finally, the ultimate piece of old advice that still holds

Financial author David Ramsey speaks of the importance of reading stories like The Hare and the Tortoise each day to one’s children, illustrating them real with financial examples. People who are rich today have lived through years of modest spending, socking their money away and investing all the time.

Unless one inherits money, it’s important to be willing to set aside the desire to impress people today and live well under one’s means for years. You can either act rich today and be done by the time you retire, or begin 20 years from now and be rich forever.

Toby Peters works as a financial advisor. He enjoys sharing his experiences online. His articles can be found mainly on business sites.

 


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December 16, 2015 Financial Advice: Lessons from Pros of the Past and Present