There are a few books which leave an ever lasting impact on our minds — I would even go as far as admitting, they could alter the course of our lives.
Rich Dad Poor Dad by Robert Kiyosaki is one of those gems which I first happened to read when I was 19 years old. It opened my eyes to concepts of Wealth Creation, Personal Finance, Assets & Liabilities, and more than anything else, to innumerable possibilities, only if I learnt to make my money work for me.
I recently re-read this classic and it offered a new dimension this time. After more than a decade long relationship with money, I realized how hard it was to really practice money discipline. Admittedly, despite having some knowledge of basic money principles, I found myself stuck in the ‘Rat Race’ still.
Here is sharing 4 ideas which stayed with me from the book along with a short roadmap which helps me implement these learnings.
Here is sharing 4 ideas which stayed with me from the book along with a short roadmap which helps me implement these learnings.
- Know the difference between ASSETS and LIABILITIES
Robert simplifies these terms — Assets are what bring money IN and liabilities are what take money OUT of your pocket. Period.
This made me reflect on the fancy bags, clothes, shoes, car, which were merely liabilities (in financial terms) — of course, they were much required, however, they did not count as Assets.
It also talks about buying a house purely to live in it — which again is not considered an asset — however, he maintains that it is often a highly debated subject since most people are emotional about owning their own home.
2. The Rich Invent Money
“Why not seek to learn more than earn more.” ~ Robert Kiyosaki
Robert strongly recommends Upskilling, clearly calling out four key skills which include accounting, understanding taxation, marketing and negotiation. The rich often groom their children to understand various departments to get an overall understanding of business.
To make money work for us requires us to get out of the emotions of fear and greed and think logically.
To make money work for us requires us to get out of the emotions of fear and greed and think logically.
3. Choosing your network wisely
No man is an island. Any drastic change requires support from those close to us, from professionals and from like-minded people. Don’t listen to the ‘Chicken Little about the Sky is Falling’ theory — there will always be cynics who will talk about all that is bad in the world. Instead, communicate with the enterprising ones around you who are on the path of wealth creation.
No man is an island. Any drastic change requires support from those close to us, from professionals and from like-minded people. Don’t listen to the ‘Chicken Little about the Sky is Falling’ theory — there will always be cynics who will talk about all that is bad in the world. Instead, communicate with the enterprising ones around you who are on the path of wealth creation.
4. Making DAILY choices
Our spending habits reflect who we are and our values. What we choose to do with our time and what we see, hear and consume everyday impacts these habits.
Our spending habits reflect who we are and our values. What we choose to do with our time and what we see, hear and consume everyday impacts these habits.
“If you want to be rich it’s important that you understand the power of choice and know how to make good financial choices.” ~ Robert Kiyosaki
Most of us struggle financially not because of what we know, but because of what we do not know. The book talks about the basic money principle of‘Pay yourself first’ and the power of ‘self control’.
Do you have money goals? Is there a book that has altered the way you think about money? Are you a Robert Kiyosaki fan like me? Share your thoughts as a comment!
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