$$ LESSON 1: The Poor and Middle Class Work for Money. The Rich Have Money Work for Them
My next book after The 5 Love Languages: The Secret to Love that Lasts is written by a famous writer, Robert Kiyosaki.
Photo taken by me
You guessed it right, it's Rich Dad, Poor Dad. I had no interest in Financial Education at all. Budgeting was a hassle. Expense tracking was a fad. Finance was totally foreign.
Fate has designed to me up with my boyfriend, who is also financially educated. He taught me how to manage my expenses and savings. That was 4 months ago.
One fine day, I've realized ONE thing.
Made in Canva.com
It doesn't makes sense at all!
What I do know now and not know then, is I know where I spent my money and I know the limit on every category that I spend on. Ever since, I think thrice before spend and think of other ways to make money, a.k.a multiple sources of income.
Now I know the importance of being educated financially.
This book is really idiot-friendly, because the lessons were taught by Robert's rich dad to Robert and Mike when they're 9 years old. I fell in love with this book immediately because a finance-idiot like me understood money!
So does Robert really have 2 dads? And who's Mike?
Robert has 1 biological dad, his real dad who he regard as "Poor Dad". Robert's "Rich Dad" is Mike's real dad. And Mike is Robert's childhood friend. 20 years ago, Robert's "Poor Dad" is not poor and "Rich Dad" is not rich. But the way they teach Robert is totally different.
His poor dad wants him to study and get a job. His rich dad wants him to study and create jobs.
His poor dad wants him to study in university.
His rich dad wants him to study how to make money work for him.
2 dads who taught him different things in life. In turn, he got to decide which one is good for him and created his own understanding about money.
5 Key Learning Points from Lesson 1: The Poor and Middle Class Work for Money. The Rich Have Money Work for Them
LIFE IS YOUR BEST TEACHER
Most of the time, life pushes you around. Each push in life says "Wake up, there's something for you to learn." It is your choice whether you learn it or not. Generally, humans will react in 3 different ways,
- Give up and let life push you around
- Get angry and push back, to their bosses and surrounding people/things
- Learn and move on
If you give up and let life push you around, you'll always play it safe, never take any risks. You will always look for jobs with security and lotsa benefits. You'll save for events that will never happen. You'll die a boring death. But deep down, you've wanted to win big but fear dominated you.
If you get angry and push back, and push back to other people, you're blaming others for your own problem. In Robert's case, he was paid 0.30$ per hour to work for his rich dad. He fought back, saying his rich dad should pay him more or else he'll quit. Rich dad said, "That's exactly how most people do. They quit, looking for a higher salary or a better job, thinking those will solve their problems. In reality, it won't."
It is easier to change yourself than change your boss to raise your salary
Few people learn from their life and turn them into lessons. They welcome life lessons because they get to learn and improve. They use their brains to think how to be better than they were, think for other solutions that will make and keep money.
Tips: One way to turn your life into lessons is to do Private Reflection.
MOST PEOPLE DON'T REALIZE THE TRAP THEY'RE IN
There are 2 parts of emotions or soul within us. First is weak and needy that can be bought with a price. Second is resilient and could never be bought. It's just matter of which wins.
It is fear and greed that controlled your lives.
It is the fear of lack of money that makes you you get up, go to work. Then you get your paycheck, your greed shows the new stuffs that you can buy with your hard-earned money. When your money are spent on paying bills, buying stuff, savings, and etc., your fear of without money sets in. Then you get up, go to work, and get your paycheck, and the endless cycle repeats. Then, a pattern then sets in.
This is what Rich Dad calls The Rat Race, a trap that most people don't realize they're in.
Why most people don't realize this?
Perhaps we are too busy working, paying the bills and keep complaining about our salaries. Or we are controlled by fear and greed, and we're used to using emotions to think, not to think using emotions.
And we refuse to believe that money is controlling our lives.
HAVING MORE MONEY DOES NOT SOLVE PROBLEMS
Most people go to school and university, finished their 4 years of study and think eudcation is done. Rich dad always knew that his study of money is a lifetime process because the more he finds out, the more he needs to know. They don't study money. They go to work, get their paychecks, balance their bills and repeat. Then they realize they have money problems, and think having more money solves the problem.
Imagine, back to the point where your current salary is raised by 3000 dollars. You will think of all the things that you want to buy. Phone, camera, books, computer, clothes, travelling and more. You desire more things that may make you happier, temporarily. You spend and then realize you're back to square one, money problems.
This is why having more money does not solve the problems.
It is having financial literacy that will solve money problems.
USE YOUR EMOTIONS TO THINK, NOT TO THINK WITH EMOTIONS
I deserve a pay raise.
I need to get a job.
I need to work.
Money is the root of all evil.
These are statements and way of thoughts that are driven by emotions called fear. And how to think with emotions?
What am I missing here?
What do I need to learn so that I can make money work for me?
How to make more money instead of working a 9-5 job?
Why is this not working for me?
Why is this happening?
You realized you fear the lack of money and you desire things when you get the paycheck, and this keeps repeating. You realized this isn't right and you start finding your way out of the trap.
A month ago, I've started to view emotions as an indicator that something hidden is happening and I need to find out what's happening and why is that happening. The question I asked in Ron's picture is the result of being aware my life, my emotions and asking myself to find out why.
A JOB IS A SHORT-TERM SOLUTION TO A LONG-TERM PROBLEM
This is sadly, true. Most of us are working on a job, that we think is secure. Then we job hop to a higher paying salary, and we're still keep on working. We work to pay our bills, and our bills are our short-term problems.
When you take a step back and look at your lives from a 3rd person point of view, you'll realize paying our bills is not what we should focus on. Yes, it's necessary but focussing on it will take you nowhere. You gotta find a long-term solution to a long-term problem.
For me, my long-term problem is getting stuck in the Rat Race. And I now know, working on a job will not get me out. Thus, Steemit is one of my stepping stone for me to get out, slowly. At the same time I am also learning financial education from Robert's book and my boyfriend. I am also taking up any opportunity to learn new skills (some may seem irrelevant right now) and meeting new people.
Bonus Knowledge: Edgar Dale's Cone of Learning
Robert introduced Edgar's Cone of Learning. Because Rich Dad taught them by simulating life and they learn from experiences and doing.
This methodology is the total opposite of what most schools are doing.
How many of you remember the lessons learned in classrooms? Probably 10 - 30 %
How many of you remember the presentations you did? Probably 50 - 80%
How many of your remember what you've learned in your interships or practical trainings? Probably 70 - 100%
Instead of lecturing, teach your kids by doing. If you're teaching about life lessons, a simulation of what life tastes like is the most effective method to pound those lessons into their head and body.
Which key learning points resonated with you the most? And why?
@tifaong writes simple and positive practices and ideas that you can learn (or re-learn) and apply in your life immediately. She covers life lessons, self-help, relationships, and motivational contents. Her mission is to spread positivity so that we can live a happier, fulfilling life.
Check out her profile here to find out more 😁
She has committed to post daily, so rest assured that you will find something new everyday.
#Newbieresteemday
#Greetersguild
Follow @greetersguild and join us on discord to learn more (newbies and non newbies welcome). We are always looking for more Greeters to join our team! https://discord.gg/3jYNPUx
Qurator
SmartSteem
Wanting to know more on building assets! Haha
Yeahhhh this book will cover assets vs liabilities. Once I've learned that, I'll share on my posts so stay tuned hehe.
Great, will stay tuned!
😁
Great project @tifaong!! Financial education is the foundation to financial freedom - what's next is the financial application of it. Glad that things are starting to work out for you, excited for your future content!!
*P.S: Came here right away from #kopitiam hahaha!!
Thank you for reading @aaronmcheong!!
Too bad we're not taught of finance when we're at school. Well there's an option to learn accounting but it's not enough, IMO. You nailed it, learn and apply, that's why we learn in the first place right? So that we'll get to apply.
Hahaha I won't be publishing the second lesson so soon because I'm learning from scratch as well. Stay tuned 😊
Such an amazing post @tifaong. Fear is the fire that starts it all. Depending on how you deal with it depends on whether it goes up in a blaze of glory or keeps you comfortable. We do need to start looking at the picture differently. The world is changing and we need to change with it.
Thank you for reading @tryskele.
Fear is the fire but we must not look at it in a bad way. It's an important indicator as well. And how we think logically based on fear is the key to be logical and not emotional.
Yeahhhh you get it!
@tifaong, very well written and realisticly pointed out the cruel fact of life. Many people still tend to "enjoy" the rat race until one day they are out of job, and that's when they will start waking up.
Thank you @liewsc for reading and your kind words.
Yeah right! When they realize they have nothing else when they lose their job, that's the turning point. Hopefully it's not too late for some.
@tifaong, truly agree. Most people are just too fear to get out from their comfort zone. I bet it is less than 1%. But if 5% of Steemians read this and start to make little change from here onwards, at least your post serves as a good reference, and it is never too late by then.
Awwww @liewsc, you've melted my heart. You've just said what I'm achieving in this world, "At least your post serves as a good reference" :)
Getting out of comfort zone is scary for most but if you made the uncomfortable, comfortable, it's as euphoric. :)
@tifaong, if you happen to notice I am too relaxing, kick my butt to get me out from the comfort zone too. Hahaha
Sure cannnn
Any symptoms that I can notice from you?
Hmm... when I am day dreaming? Just shake and make sure I awake. :P
Loll @liewsc I wish I could but I'm not physically there with you laaa. I can't even shake you... shake shake shake
Find someone that you're comfortable with maybe?
Your post was featured on TeamMalaysia TehTarik Sunday ! Keep it up and see you next Sunday . Here is a tip!
Hi @tifaong! You have received 0.1 SBD tip from @myach!
@myach wrote lately about: Teammalaysia'S Daily Picks #2 | @Explorernations, @Vaelriey & @Zord189 Feel free to follow @myach if you like it :)
Protip: you can now delegate SP / invest in @tipU for daily profit payout - click here to learn more :).
You have been upvoted by the @sndbox-alpha! Our curation team is currently formed by @anomadsoul, @GuyFawkes4-20 and @fingersik. We are seeking posts of the highest quality and we deem your endeavour as one of them. If you want to get to know more, feel free to check our blog.
This is a courtesy of @fingersik
I will list out those key points and relate to my own story or points
So have you started practising any of the key points above with Edgar Dale's Cone of Learning?
Hey @williamsyee, thank you for reading :)
I'm really happy that you find this article so relatable to you.
You have a very positive mindset and attitude which is very commendable. And you get what I wrote!
I couldn't agree more on your point #3. With more money, we want more things because we think we can afford it. It goes back to Want vs Need :)
Regarding your Cone of Learning question, I learn and apply. I've decided to remember things by using Jim Kwik's method. Memory + Emotions = Long-term memory. This is my formula, Content + Picture + Emotions = Long-term and I've just started to test this out. So that I don't forget things that matters anymore.
This post has been curated by TeamMalaysia Community :-
To support the growth of TeamMalaysia Follow our upvotes by using steemauto.com and follow trail of @myach
Vote TeamMalaysia witness bitrocker2020 using this link vote for witness
Rich Man, Poor Man is an excellent book. It would be even better if I could get my wife to read it.
Having money work for me rather than me work for money is something I've wanted to do since an early age, and to a degree, it's happened in my life. I did have a business with employees, and they did most of the work (though not all).
I have invested some money (including now in Steemit), and I've tried to pay down debt as much as I can as quickly as I can.
I think the main idea is that while education is important, it's the kind of education and how it is applied that matters. If you want to be wealthy, then you need to now how the wealthy think, and learn what they've learned. It won't necessarily come from a college degree or even a good job at a major corporation. The independence sought working for someone else will always be tied to someone else's money making idea.
Hey @glenalbrethsen, haha I wish you all the best in enabling your wife reading this book. I agree with you it's a book that's written in such a way, that an idiot can understand a complex subject. I love this book a lot.
I do agree it's extremely important to learn and apply because that's the point you learn right? So that you can use what you've learned! Else, we'll be wasting our time. Learning what the wealthy thing is a step towards financial freedom, but we can't just plainly imitate them. We gotta understand why they do what they do and learn to decide for ourselves. And school don't teach us these, unfortunately.