August 15

Think & Grow Rich

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In today’s blog we’ll be discussing some of the basics of finances! As Kanye West says, “Having money isn’t everything, not having it is.”  In today’s blog post I will be spreading some tips from #1 Personal Finance Book of All Time, Rich Dad Poor Dad by Robert Kiyosaki! You might want to get out a pen & paper for this one.

As quoted from Rich Dad Poor Dad,  As the world Population ages & more and more people move toward retirement, it’s been reported that the #1 Fear is tied to money. Nearly 50% of those surveyed, fear that they will outlive their money…running out of money in their golden years” Let me start by asking you this question, do you have this same fear?

In Robert Kiyosaki’s classic Rich Dad Poor Dad, he talks about the lessons he learned from his poor dad, who was his actual dad & his rich dad-who was his best friends dad. His poor dad was a teacher who made a decent income but struggled to pay the bills each week. His rich dad owned multiple business, & taught Robert the many lessons that we’ll go through here today.

Lesson Number #1 The Rich Don’t Work For Money’’

  • The Poor & the middle class work for money. The rich have money work for them. The rich don’t work for $$#, they leverage assets & businesses allowing money to work for them. Here’s what the poor and middle class typically do, they Run The Rat Race, it starts with the fear of no money→ they work hard for their money, selling their soul to a job that they hate→ then they get some money & get excited to spend it→ then there’s a desire to buy something—> they increase their spending on liabilities (items that go down in value)—> forcing them to work more! The rich treat their money as employees that work for them to create more money.  The rich buy & build assets that delivers cash flow. My personal philosophy is to work doing what you love- whether that is creating a business or working for a company, but allow your money to work for you to build your wealth so that you never have to rely on a job for security.

Lesson Number #2: why teach financial literacy

  • Quotes from Rich Dad Poor Dad, “Rich People Acquire assets. The poor & middle class acquire liabilities that they think are assets”
  • Rule #1: You must know the difference between an asset & a liability, & buy assets
  • QUIZ TIME: So what is an asset & what is a liability?

To keep it simple, as stated in Rich Dad Poor Dad an Asset Puts Money in My Pocket. A liability takes money out of my pocket

 As quoted by rich dad poor dad, “if you want to be rich, simply spend your life buying & building assets If you want to be poor or middle class spend your life buying liabilities”

Let’s take a minute here to breakdown the income statements & balance statements of the poor vs the rich:

The cash flow of the poor comes from the salary of a job which then goes first to expenses which included expenses, taxes, rent, food, transportation, clothes etc.

The cash flow of the rich come from assets such as real estate, stocks, bonds, notes, intellectual properties, businesses’, etc which then result in rental income, dividends, interest, & royalties

This is what happens to most people in society which is the reason why most people struggle financially:  The family gets an income raise, they get a big house, get a new car, get nice appliances for the house→ then they become a slave to all of their liabilities. Many financial problems are actually a result of trying to keep up with the jonesses’. Ask yourself this question, are you trying to keep up with the joneses to “look” rich or are you actually trying to create real wealth?

Remember, the rich concentrate their efforts on buying income producing assets- when you truly understand what an asset is.

Lesson #3: Mind your own business

Rich Dad Poor Dad, explains very clearly that you don’t have to go and quit your job to get rich. Robert Kiyosaki explains in lesson #3 that it’s great to use your income from your job to help build your asset columns, but what he also mentions is that most people forget to mind their own business when they start working. What does he mean by this? He means, yea go ahead and work for someone else to make money, but while your building up someone else’s dreams do not forget to buy real assets and build your own dreams.

Another thing we ALL have to keep in mind is that there are going to be far less jobs in the next few decades due to robots, so now more than ever it is so important to build a base of solid assets.

Here are some examples of real assets:

  1. Businesses that do not require my presence I own them, but they are managed or run by other people. If I have to work there it’s not a business. It becomes my job
  2. Stocks
  3. Bonds
  4. Income generating real estate
  5. Notes
  6. Royalties

Here are some examples of liabilities:

  1. Mortagage
  2. Car Loans
  3. Credit Card Debt
  4. School Loans

Remember, promotions or a better job will only help you become more financially secure if the additional money is used to purchase income generating assets!

Are you trying to look rich or are you trying to build your asset column?

Lesson #4:  The History of Taxes & The Power of Corporations

In 2018, Amazon paid $0 in U.S. federal income tax on more than $11 billion in profits before taxes. It also received a $129 million tax rebate from the federal government.

This is why the rich get richer & the poor get poorer because the poor work for corporations & pay more in taxes as their income increases, whereas the rich OWN businesses that have a much smaller tax rate.

The rich simply take more money home, because they are not getting taxed as heavy!

Ask yourself this question, how can I get some breaks on taxes like Jeff Bezos & Amazon?

Lesson #5: The Rich Invent Money

What does Robert mean by Lesson #5? Money can be made all through an idea from the mind. You don’t have to make money the traditional route

As quoted in Rich Dad Poor Dad, “Money-which isn’t real, by the way, but just what we agree it is-isn’t our greatest asset. Our mind is. Train it well. Millions can be made from nothing more than ideas and agreements”

Another quote to put this lesson in perspective is, “great opportunities are not seen with your eyes. They are seen with your mind”

Think of some of the most successful companies such as uber, amazon, apple, facebook etc  they all started with an idea from the mind that each generate millions of dollars…all from an idea! The Rich Invent Money from ideas

Lesson #6: Work to Learn, Don’t Work for Money

This is probably one of my favorite lessons from Robert. If your mind is your greatest asset to attain wealth from ideas, then it must be pretty important to take time to learn more

There are so many skills that are necessary to become successful, some of them being communication skills, writing, speaking, negotiating, selling, & marketing. In order to learn to master these skills you must invest in yourself & your education.

Go to seminars to learn from the experts in the field, read books, go through online courses, get a job to acquire new skills in fields that you need to know more about!

Remember the best investment is in yourself!

There ya have it folks! 6 Lessons from Rich Dad Poor Dad!

Just to recap for you all.

Lesson Number #1 The Rich Don’t Work For Money’’

Lesson Number #2: why teach financial literacy

  • Quotes from Rich Dad Poor Dad, “Rich People Acquire assets. The poor & middle class acquire liabilities that they think are assets”

Lesson #3: Mind your own business

Lesson #4:  The History of Taxes & The Power of Corporations

This is why the rich get richer & the poor get poorer because the poor work for corporations & pay more in taxes as their income increases, whereas the rich OWN businesses that have a much smaller tax rate.

Lesson #5: The Rich Invent Money

Money can be made all through an idea from the mind. You don’t have to make money the traditional route

Lesson #6: Work to Learn, Don’t Work for Money

Remember the best investment is in yourself!

I really appreciate you taking the time to read this post today ! Please, please, please if you enjoyed this blog & it provided some value to you leave a comment & share your thoughts.As always, peace & love! I look forward to you tuning in next time


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