Day 12: Rich Dad Poor Dad

Intro

Rich Dad Poor Dad by Robert Kiyosaki, for me, is one of the best educative books about how can a person emphasize to be financially free. Robert who was raised by "TWO DADS", shares his knowledge on how he was groomed to become one of the successful people in this world. As mention in one of my previous post, someone's money blueprint, which lies in the subconscious mind, is highly affected by how the people around us view money. As we grow up we eventually copy what we saw and we model them in our own way. In the end, our relationship with money is either set on "high" or set on "low". His Poor dad (biological father), who was highly educated, always encouraged him to pursue an education and work for money while his Rich Dad (His best friend's father), taught him the value of money and encouraged him to make money work for him. Since Robert grew up in the company of two dads with conflicting views, both successful but one of them was poor and the other one was rich, he was able to think, compare and choose who he would later model while growing up.  

Lessons from Rich Dad Poor Dad

Lesson 1: Life

Life will not always be fair. Life, unlike in school, teaches you through unfairness. It depends on you how you take it. You can view it as a failure and give up or you can view it as a learning experience and restart where you failed and continue to learn until you succeed.  

Lesson 2: Fear of money

Whether it's the poor or the temporary rich, they all have fear concerning money. Poor; the fear arises due to lack of money. Without money, they won't be able to survive. So they need to get a job without realising that a job is a short term solution to their long term problem. Thus the matrix begins. Temporary Rich: this fear arises due to the presence of money. They fear that one day they might lose this money and all the comfort and leisure associated with it.  

Lesson 3: Emotions

Along with fear, there are other emotions that govern a person mind. Greed is one of them. When people, living the matrix life, work, they are eventually paid. It is then the desire of wanting the materialistic things, creep into the mind. The greed of wanting more keeps them working as a slave.  

Lesson 4: Make money work for you.

Instead of letting emotions like fear, greed or desire to take over your life and do the thinking for you, make your mind use these emotions to be able to think. It is then you will be able to find the missing piece and make money work for you instead of working for money.  

Lesson 5: Financial Literacy

Making money is one thing but being able to keep them is another. It is important for someone to be financially literate in order to know that brings money into your pocket and what takes money out of your pocket. Asset: Brings money in Liability: Gets money out Rich people invest more in assets, poor people buy liabilities and middle class buys liabilities thinking they are assets. It is the money generated from assets that pay for the expenses caused bu the liabilities. This is the reason why the rich remains rich and poor stay poor.  

Lesson 6: 4 Financial Pillars

a) Accounting: the ability to read numbers. It helps you understand the financial literacy better as the latter is the ability to read financial statements in order to identify the weakness and strengths of any business. b) Investing: Science of money making money. c) Understanding Markets: Science of supply and demand. This allows you to decide if it's worth investing in the current market conditions or not. d) The Law:  A corporation applying the above mentioned technical skills can undergo massive growth. Understanding tax advantages and protections provided to a corporation, a person can get rich a lot faster.  

Lesson 7: Learning: a never-ending process

Most of the time people become what they learn and later on specialises on what they become. A business system is made up of several departments. It is better to know and understand how all these departments link together and work instead of being a specialist in only one.  

Lesson 8: Management skill and success

The main management skills needed for success are:

1. Cashflow management
2. Systems management
3. People management

 

Lesson 9: Financially independent

One can be financially literate but not financially independent. The reasons for not being financially independent are

1. Fear
2. Cynicism
3. Laziness
4. Bad Habits
5. Arrogance

Once these reasons are eliminated, financial independence takes place.  

Lesson 10: Power of giving.

In order to get something, learn to give what you want. You want to learn about something, then teach someone about what you know, you will see, you will amass the knowledge that you didn't think you would. You only need to be generous with what you have.  

Last Notes

I got to read this amazing book while doing my 15 Days Online Business Builder Challenge. This is a platform that gives you a profound education on how to build, scale and grow your online business. It also teaches you and gives you knowledge on how to achieve your financial freedom life. Click here to check it out. Another platform that guides people to have their own business is no other than Click Funnels, do attend the web class for more information.   If you have found value in this post, always feel free to comment and share it with your loved ones. Stay blessed.   * If you purchase anything through a link in this article, you should assume that I have an affiliate relationship with the company providing the product or service that you purchase, and that I’ll be compensated in some small way at no extra cost to you.