I thoroughly enjoy self development and recently I decided to start reading books on all kinds of different topics. Although this book was different from the others that I had been reading, I really enjoyed it. I believe that there is always room for improvement and to grow and I took a lot away from this book, even if it was just planting concepts into my subconscious and helping me in the future to be more financially savvy.
In this book, Robert T. Kiyosaki explains how he had two fathers: the first who was his very educated biological father – the poor dad – and the other was the father of his childhood best friend, who didn’t finish the eighth grade – the rich dad. Both fathers taught Robert about their very different perspectives on money principles, ideas and financial practices. This allowed Robert to listen and compare the two very different views and decide for himself which was better for him.
My main take-aways from the book:
1) Change your mindset from ” I can’t afford it” to ” how can I afford it?” This empowers you to be in control and stimulates your mind to start to figure out ways to solve this problem. When you say things like “I can’t afford that” it stops the brain from problem solving and kills initiative.
2) There are constantly opportunities to help you financially but you have to be smart and use your emotions rather than thinking with them. If the opportunities are not obvious to you, seek them out. The more you look for them the more you will find and the better you will get at recognising them.
3) It is very important to be financially literate in order to ensure you’re safe financially with any decision that you make. The concept is to promote being smart with your money before you have it. Robert Kiyosaki explains how there is one rule, and only one rule to build a strong financial foundation; know the difference between an asset and a liability, and make sure that you only control assets.
To the author, real assets are anything with value such as stocks, bonds, mutual funds, income-producing real estate, royalties from intellectual property etc.
4) To be financially literate you need to develop your financial IQ by gaining knowledge of accounting, investing, understanding the markets, and the law.
5) It’s not about how much you make but instead about how much you keep.
6) Robert Kiyosaki expresses the importance of giving money away, even before you get wealthy. He explains how what you give to others, you will receive and how giving should not wait until you earn a certain number.
7) Lastly, to find a reason greater than reality to motivate you. This will empower the mind and give you a strong purpose for living. You can then feed the mind and acquire power of choice.
Whether these points resonate with you or not, this book is worth reading if you’re interested in becoming financially independent.
It made me think about money in a different way and how much there is to learn about finances.