Today’s big idea comes from Robert Kiyosaki and his Brilliant and highly motivating book, ‘Rich Dad, Poor Dad’! The book has the subtitle ‘What the Rich Teach Their Kids About Money That the Poor and Middle Class Do Not!’
As always, we highly recommend reading the whole book. You can buy it by clicking our affiliate link: https://amzn.to/38dcbnv
The book takes its starting point in Robert’s personal story of growing up with two dads — his birth father who was highly educated and hardworking but none-the-less always poor and the father of his best friend, his rich dad, who took him under his wing and taught him financial literacy and how to become and remain rich.
Here is our take on the highlights from the book:
#1 Above all, educate yourself.
The educational equivalent of the saying, “You are what you eat,” is “You become what you study.” And According to Kiyosaki, the biggest obstacle on the path to financial independence and wealth is financial illiteracy.
It is, therefore, crucial that you develop financial intelligence. Spend time with successful people. Read books, attend seminars, and learn how to earn money, and – even more important – how to accumulate it once you have it.
#2 Stop working for money; instead, make money work for you!
The poor and the middle-class almost always work for others in exchange for a pre-determined salary! The sad fact is that no matter how proficient you are at your job and how much money you earn every month, you will most likely never obtain financial independence as long as your salary is your only income source.
In contrast, the rich always seem to have enough and don’t appear to be working any harder than the rest of us! And the secret behind this, you ask?! They have stopped working for money and made money work for them. They do this through financial intelligence, by collaborating with legal and tax specialists, and by Minding their own businesses.
#3 Mind your own business!
Your profession is the line of work you have chosen; your business is what will make you rich. Most of us work – at our job – to earn income! But often – even if you have an impressive title – your salary won’t get you far, and we end up making our employers and their stakeholders rich instead of ourselves. To safeguard and grow your personal wealth, you need to create and maintain your own business on top of your professional career.
First and foremost! You must know the difference between an asset and a liability and focus on building your assets while avoiding liabilities.
Here is an easy way to picture the difference between the two:
- An asset puts money in your pocket.
- A liability takes money out of your pocket.
Examples of liabilities are your Car, expensive clothes/watches or other luxury items bought on credit, mortgage, and the likes.
On the other hand, an asset is anything that makes us money without taking up the majority of our time, such as stocks, bonds, royalties from intellectual properties, income from online ads, cash-producing real estate, and side-businesses. To be wealthy, we need to spend a big chunk of our money on assets as they assure us a steady stream of income that we can use to acquire even further cash-producing assets.
In conclusion, ‘the rich’ focus on building assets that keep generating cash, which they subsequently use to buy even more assets, and hence the path to financial freedom has been paved.
And there you have it! The Key takeaways from Rich dad, Poor Dad.
I hope you will enjoy the video. That it will inspire you, help you Grow your Mind and Motivate You to be The Best You!
You can check out the video here: https://youtu.be/nf3onUC7NtA
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