About a year ago, I picked up the book ‘Rich Dad, Poor Dad’ by Robert Kiyosaki. The read was revolutionary for me and inspired me to move past fears that have stopped me from doing more with my life financially.
Since reading that book, I have read several others by Robert Kiyosaki and his ‘Rich Dad Advisors’. I have also attended several of his seminars and classes, both in person and via audio materials and workbooks. He and his advisors cover everything from real estate investing to increasing your financial IQ to starting your own business to conspiracies of the rich.
Robert Kiyosaki is a man from humble beginnings that learned 2 different ways of thinking from 2 different fathers. By employing them later in life, he was able to retire in his forties, never having to work again, and started a new life as a financial educator, business man, and investor. Everything he said about how his poor dad managed money – was the same as what I had learned growing up.
Reading through ‘Rich Dad, Poor Dad’ a second time, I really focused on the opposite of all I knew – and those were the ideas of his rich dad. These ideas were very logical, simple, and completely achievable. I knew then that I had to start thinking differently about how I managed my life not only financially, but personally and professionally as well.
Here are the top 5 things that I have either gained a greater understanding of or learned more about from Robert Kiyosaki:
1. Focus on maximizing how much money you keep – and what you do with that money when you have it. As an employee of a company, you give approximately 50% of your income away in taxes to the government before you ever see it. You have no choice. You work for the company first, the government second, creditors third, and you count what is left over.
Alternatively, as an investor and owner of your own big business, you have many more tax advantages and have more control over how much money you keep. You determine how much you have to pay the government AFTER you get paid, and not just take the leftovers like you do as an employee.
2. Start putting money away every day. Get 3 piggy banks labeled savings, investing, and tithing. Put a dollar a day in each. Or more. Or less. But what is important is the action of it being first thing every day – thinking about saving, investing, and giving away money versus being a consumer first and investors later. I tried it. It has really worked. Now I really think twice about wanting a coffee or something else frivolous. And the cash is accumulating very fast!
3. Learn about your finances – it is more than balancing your checkbook and checking your balances and paying your bills. What is important is to see your net worth by doing a financial statement.
Learn that an asset is something that puts money in your pocket every month – and a liability is something that takes money out of your pocket every month. You need more assets than liabilities, and you need to know how long you could live if money stopped coming in. Learn about your finances, and do not be afraid to hire a bookkeeper to help.
4. Start thinking like a rich person does – you cannot get rich if you do not know how the rich people get rich. There are many strategies that the non-rich part of society does not know about. It is ok to model your strategy after theirs – remember to and start slow.
5. Start working for a network marketing company. Now, everyone says ‘No Tupperware!’ ‘No Amway’. But the point of working for a network marketing company is this: Network Marketing companies, good ones, will train you. They will work with you to be successful.
They have great training programs and mentors. You can do it part time while you get it started. You will learn how to sell, a core competency needed if you ever want to have your own business. You will also learn how to take rejection (which, as we all know is driven by fear). You will build your own business, get people working with you and for you, coach and mentor them to get the business to grow and eventually be able to run by itself.
This will provide you with a nice residual income stream. This is the easiest way to start a business with low cost entry.
Taking these 5 ideas and applying them to your own life is part of a transitional way of thinking. In many cases, it is a retraining of how you are wired, how your brain is conditioned to think.
It requires putting fears and stigmas aside, and deciding to slowly implement strategies that will put you more in control of your own finances, wealth, and destiny. And it is perfectly acceptable to want to be rich – it is simply ensuring that you provide a comfortable life for your family and your legacy. What is wrong with wanting that?