Chapter 4 (the ten percent solution)

roy explained to them how 30 years ago he knew nothing about financial planning either, and after roy talked to mr white he received the secret to help him achieve wealth. there is one big golden rule INVEST TEN PERCENT OF ALL YOU MAKE for long term growth and if you follow that one simple guideline one day you will be rich. roy began to tell them unbelievable stories about how they could invest a little bit every month and in 20 or so years it would be worth millions of dollars. it is all due to compound interest. roy explains you don't have to squirrel away every cent but you must save some to accomplish your financial goals. a vary important saying is pay yourself. once you begin putting away 10% you wont even miss it after a while. to achieve higher interest rates over time we must be owners not loaners. roy warns them not to buy common stocks with their 10% savings. there are very few people who become rich by buying and selling stocks. many people can loose money rapidly in the stock market and it is not the way to go for long term wealth.roy emphasizes the importance of having a good long term track record. buying mutual funds is very simple and can be done straight through your bank. an interesting statistic is that 90% of the worlds millionaires have become rich through real estate. and real estate is all a matter of timing. so by saving 10% of your pay currently you practically guarantee yourself financial freedom later in life.