Mind Your Own Business (Book Club)
Rich Dad, Poor Dad Book Club
Chapter Three, Study Session Questions
Additional Questions
As in prior posts, I recommend formulating your answers to the following questions before reading my answers (which are written below).
If you feel like putting the Blockchain to work for you, please turn your answers into a post and direct me to it by leaving a link here in the comments. If you don’t have time to make your own post, please feel free to strike up a conversation in the comments section about any of the following questions and answers.
1 What is your profession, and what is your business? How do they differ?
2 What are things you might have counted in your net worth before reading this chapter? How do you view them now?
3 Are assets you’re acquiring the type that you love? If not, how can you change that?
4 What is a time you bought a luxury that your cash flow couldn’t justify? What is a time you did so when it could justify the purchase? Compare how you felt in the two situations, both at the moment of purchase and later.
5 Have there been people in your family who have spent their whole lives working for someone else, only to end up with nothing? What would you have advised them if you could?
My Answers
1 What is your profession, and what is your business? How do they differ?
This is an interesting question, and it’s one that I think everyone should try to answer.
I work as an English teacher. That is my profession. However, if I were to teach and tutor people on my own terms outside of my regular day job, teaching English could also become my business. At the moment, it isn’t.
Maybe it’s time for me to start paying more attention to this area in my life. Rather than working for a wage, I could be working for a price that I determine. I could then tend to my business by working to increase the number of students in each of my classes. The more students I am able to recruit, the better my hourly wage would become. While this isn’t quite the way that Kiyosaki recommends we put our money to work for us, it is a better use of my time.
I think that I can also consider my Steemit account and activities here to be a business of mine. With Steemit, the powered up SP that I have produces a small, but steady stream of passive income for me. If I were to use it in a smarter way, I’m sure that I could increase the amount of Steem I receive each week.
In my mind, my current business, which is a small one, is as a blogger and a crypto investor. These are the only two areas where my assets lie, so I think that, according to Kiyosaki, these would be the places that I should think of as my business (a place where my money can be put to work for me and not for other people). The difference between my business (including the one as an English teacher mentioned above) and my profession is that my business has the potential to and does create a stream of income for me without me actually being physically present and without requiring much of my time and energy.
2 What are things you might have counted in your net worth before reading this chapter? How do you view them now?
Actually, this chapter hasn’t had an effect on what I would and would not consider to be a part of my net worth. My own net worth isn’t something that I’ve ever thought about before and is probably low enough to not worrying about considering. I could be wrong, but Kiyosaki doesn’t say whether it’s important to know what one’s net worth is or not. I don't know what my own net worth is, and I’m not terribly concerned about it.
3 Are assets you’re acquiring the type that you love? If not, how can you change that?
This is something that I’ve been thinking about quite a bit since reading this book. What do I love, and how could I turn those things into assets? The assets that I have are not things that I love, they are just opportunities. I do like writing, so writing for Steemit is fun for me, but that seems more like a part-time job than an asset.
The things that I really enjoy are the outdoors, art, and music. How to turn them into assets that I can collect or exchange in a way that produces wealth is something that I am going to have to keep thinking about.
4 What is a time you bought a luxury that your cash flow couldn’t justify? What is a time you did so when it could justify the purchase? Compare how you felt in the two situations, both at the moment of purchase and later.
When I first came to Japan, I had been working and saving money quite a bit. I also secured a job before coming to Japan, so I wasn’t worried about losing income when I got here. In that way, buying my airfare to Japan was easy, and it was justified by my cash flow. It felt great.
A year later, I bought a number of airline tickets, quit my job and went on an adventure. During the time of my adventure, I had no income and no promise of income. I also had very little savings. That was a scary time. I had to just hope for the best.
5 Have there been people in your family who have spent their whole lives working for someone else, only to end up with nothing? What would you have advised them if you could?
When I think of some of the people around me who have worked hard for many years and never seem to have any money or assets, I always want to tell them to reduce their spending, to stop wasting their money on things that they don’t need like alcohol, cigarettes, pets, traveling, accessories, etc. I also want to tell them to stop moving every year or two and just stay in one place.
Instead of wasting money in these areas, I would tell them that there are better ways to put their money to use. What those are, I’m not quite sure of yet, but that wouldn’t stop me from telling them that they could be using their money more productively.
For me, I’m at a place where I’m trying to understand how I can use the money I have more effectively. Should I be buying stocks or bonds? Should I be looking at real estate? Should I be speculating with crypto? I don’t know. If you have any ideas, please let me know.
This concludes the first half of the study session for chapter three. Thank you for joining me.
If you would like to participate in this book club, buy or download a copy of Richard Kiyosaki’s book, Rich Dad, Poor Dad, and read it along with me. Each chapter is followed by a study session. I plan to read this book slowly, and to thoroughly explore each study session. I would love to do so in the company of others.
Good discussion promotes deeper understanding and helps to reveal new and original ideas.
I hope to write a post that explores the first half of the study session for Chapter 4 some time next week. If you would like to know when that post has been published, please let me know in the comments below and I will send you a link to the new post.
For those of you who missed the study sessions for chapter one and two, you can find them by following the links below.
Chapter One: Part 1/2 | Chapter One: Part 2/2
Chapter Two: Part 1/2 | Chapter Two: Part 2/2
very good
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Maybe next time.