Let’s waste no time, jump straight back into the Rich Dad, Poor Dad summery and continue on with the big ideas Robert Kiyosaki addresses in his book, as we’ve got a lot to get through today!
- You don’t need to earn a high income to be rich – it doesn’t matter how much money you make, it matters how much money you keep. If you earn a lot of money and you pretend to be rich you are racing the rat race, so you aren’t rich at all. Most people are trying to keep up with the Joneses, but instead of doing that Kiyosaki says to keep your asset column strong and once a dollar goes into it, never let it come out. (Check last week’s post if you missed his definitions of assets and liabilities)
- The poor and the middle-class work for money. The rich have money work for them – Robert says that “financial struggle is often directly the result of people working all their lives for someone else…If you work for money, you give the power to your employer. If money works for you, you keep the power and control it”. He states that “the mistake in becoming what you study is that too many people forget to mind their own business. They spend their lives minding someone else’s business and making that person rich. To become financially secure, a person needs to mind their own business.”
- Financial aptitude is what you do with money once you make it, how you keep people from taking it from you, how to keep it longer, and how you make money work hard for you. The last idea of the book is about why financial aptitude is super important. It’s what you do with your money once you make it and how you’re able to keep people from taking it away from you. In other words, don’t spend your money on liabilities, but create assets which create money. He says “the rich know that savings are only used to create more money, not to pay bills” and that “the best thing about money is that it works 24 hours a day and can work for generations.” So find a way to make money work harder for you!
Financial literacy is key. Educate yourself on investing, business, sales, taxes, accounting, real-estate and anything else you can as “a person can be highly educated, professionally successful, and financially illiterate.”
Before I go I will leave you with a few more quotes that stuck out to me from Robert Kiyosaki’s Rich Dad Poor Dad and I’ll let you endeavour on this journey if you choose to do so – I know after reading this book I’ve chosen to educate myself further on these subjects and have invested in an educational Forex/Crypto investment course as I believe these are valuable life skills and will give me a good base for when I want to start investing. After all, “education is more valuable than money, in the long run.”
More golden quotes:
Financial intelligence is simply having more options.
Most people never get wealthy simply because they are not trained financially to recognise opportunities right in front of them.
There is gold everywhere. Most people are not trained to see it.
Simple math and common sense are all you need to do well financially.
Real estate is a powerful investment tool for anyone seeking financial independence or freedom.
The most common form of laziness is staying busy.
“The sophisticated investor’s first question is: ‘How fast do I get my money back
The number-one expense for most people is taxes.
A corporation earns, spends everything it can, and is taxed on anything that is left. It’s one of the biggest legal tax loopholes that the rich use
We all have tremendous potential, and we all are blessed with gifts. Yet the one thing that holds all of us back is some degree of self-doubt.
The world is always handing you opportunities of a lifetime, every day of your life, but all too often we fail to see them.
You want to know a little about a lot
Job is an acronym for ‘Just Over Broke.’
Giving money is the secret to most great wealthy families.
Whenever you feel short or in need of something, give what you want first and it will come back in buckets.
To be truly rich, we need to be able to give as well as to receive.