How to be make money (excerpts from Robert kiyosaki)
Hi guys, from my last post I decided to start reading books and I said I will be reviewing every book I read here on this platform . The book for this post is Rich dad poor dad by Robert Kiyosaki.
For starters, this book is a book that is really easy to read and it's in simple and easy to understand English. It also has easy illustrations and drawings. I trust that after you finish reading this book, you might want to start applying the things you learnt in the book immediately after dropping the book. It took me barely 12 hours to finish reading the book for someone who doesn't like to read at all. So let's proceed to things I learnt from this great best seller.
The only way to be rich is to have financial education
Financial education is what differentiate the rich from the poor. Financial education refers to learning how to manage your finances with the aim of escaping the rat race. It however goes more than just what I said, it means learning how to make money work for you . While Robert Kiyosaki was growing up he had two dads. The rich dad and the poor dad . His biological dad was the poor dad who had all the degrees and worked for the government. He wanted him to get all his degrees so he could also get a job. However his rich dad wanted him to go to school but with a different goal all together. He wanted him to create jobs. However the school system doesn't teach financial education hence the thinking that "make A's so you could get a job not to create one ." You can't create jobs and be rich without learning about financial education.
The rich have their money work for them
This heading just simply means that the rich invest their money in asset and not liabilities.
The problem is knowing the difference between an asset and a liability. According to the book, it defines an asset as any thing that puts money in your pocket and a liability as something that takes money away from your pocket. According to the book," middle class and poor people acquire liabilities thinking they are assets." As simple as the definition of these terms are , people often still don't know the difference. For example most people think owning a home is an asset, however owning a home can be a liability because you have to pay property taxes then interest on the house over a long time from a loan you probably obtained and so on. However if the house brings return like through renting it, it becomes an asset. So try to differentiate between an asset and a liability, write them down and try to either get rid of the liability or increase your asset column.
Mind your own business
I have seen this particular statement in more than one book. It simply means try to give time and focus on what will give you financial freedom. Trust me financial freedom is what everyone wants but the road to financial freedom is not an easy one. Another simple truth is , you cannot be financially free if you don't mind your business. Minding your business entails paying yourself first, investing in yourself, studying your investment and planning how to have more assets.
Paying yourself first is one of the traits rich people have that poor people don't. Rich people pay themselves first and pay their bills next. Poor people on the other hand pay themselves last. When you pay yourself first, you are able to build your capital so you could acquire assets. Which on the long run will make you more money. Minding your business doesn't mean you should leave your day job, it means you should do your day job but also focus on your own business after the day's job.
Investing in yourself is another trait that must be developed for you to be rich. There are different ways to invest in yourself and this include reading books, listening to podcast, attending seminars, going for courses. This things when done must be geared towards increasing your asset column. For example if you are a very good baker and you are not getting good sales. It is only wise to find what could make you get better sales which could could include a taking a course on marketing.
Work to learn not to earn.
This is so self explanatory. Most people work to earn however if you want to be rich your major aim is to learn when you work. If a doctor works so he can get paid, he will never learn skills that will help make him an entrepreneur. He will probably know how to do the medical stuff but won't know other things like the administrative part of the hospital.
Have a team that is more intelligent than you.
Rich people hire people that are more intelligent than them. This helps them avoid mistakes that they will make on their own. Remember the old saying "you are an average of the 5 people you surround yourself with." This can also be said in a team too.
Learn about taxes.
Rich people know a lot about taxes and as a matter of fact make ways to benefit from taxes. I do not know much about taxes but I intend to learn more about it.
I hope I was able to add at least one thing to you from this post. All pictures were gotten from pixabay.
Thank you for reading this post .