As I have been going through Empower Network's online marketing courses, mainly the Beginner and the Inner Circle Audios, I came across something interesting.
Several people kept referring back to Robert Kiyosaki's well known book called, “Rich Dad, Poor Dad“. I made up my mind. I went to Barnes and Noble, and I bought the book!
I'm not a fast reader as I like to take my time to read it. It's about how the Rich teach their children about money, and what the Poor and the Middle Class do not. It made quite the impression on me! I actually caught myself doing “double takes” in the book when I read things like, “The Poor and the Middle Class work for money, but the Rich don't work for money. They make money work for them.” When I first read this, it made no sense to me at all. Being raised in a Middle Class family, no body really new the secret to obtaining wealth. After reading through the book, I can start to see things a little clearer. Some of the gears have been turning in my head.
The book takes places on the island of Hawaii. It is a parallel example of a boy being raised with two different beliefs about money. One his father, a well respected government employee, who was a teacher, had plenty of money but was always broke. And a second man who was his best friend's father. All throughout the book he refers to his own father as his “Poor Dad”. He called his best friend's father his “Rich Dad”.
He reflects on some of his best childhood memories, which is most of the time era in the book. It was around the age of 9 when he started asking questions about money. When he confronts his Poor Dad, he asks, “Dad, how do we make money?” His father's reply was that of almost every American Dad. “Son, get a good education, and find yourself a good ‘secure' job with benefits, and retirement so you can have money when you're older.” But his father could only give him a blank staring answer. He even admits that he didn't know how to make a lot of money. Seeing the little look of sadness on his son's face, he said, “Why don't you go ask Mike's dad? He's a wealthy man!
Mike grew up with Robert, and was his best friend. Mike's father had a small little empire to his name. He owned several business' and had millions.
His Rich Dad drew out a simple diagram that a couple of 9 year old could understand. When I saw the diagram, it made PERFECT sense to me. Maybe I think like a little kid? I do like to play 🙂 Anyway, he taught them through the drawing the difference between a “Asset” and an “Liability”.
He says an Asset is anything that puts money into your pocket, and a Liability is anything that takes money out of your pocket. The Poor and the Middle Class take their incomes and throw it into Liabilities “thinking they are Assets!” But the Rich have Assets like Real Estate, Stocks, Bonds, Intellectual Properties etc which puts money directly into their pockets without them being there.
This simple analogy makes so much sense! Why are we being taught this in school? This would have made all the different in so many peoples lives! In the book, he points out how we send our kids to school to learn how to get jobs. They don't teach you how to be financially literate! No wonder why we are all broke!
His Rich Dad taught him this valuable lesson that laid the very foundation of his financial intelligence. After quickly absorbing it, Robert and Mike went back to work for free (another lesson his Rich Dad was teaching him) when he saw the manager taring off half of the front cover of the comic books. They asked the manager what she was doing. She replied that she gives the top half of the comic as credit for the new comics coming in that day and just throws away the older comics.
Robert and Mike waited for the distributor to arrive at the store. When he arrived, they asked him if they could have the comics that were being thrown out. He said they could take them, but only if they work at the store, and only if they promised not to re-sell them. Mike and Robert happily agreed!
They began piling up comics in Mike's basement, and started a comic library! For 10 cents, kids could read as many comics as they liked for 2 hours after school. Since 1 comic cost 10 cents, and kids could read 4 or 5 in 2 hours, it was a bargain! Robert and Mike's comic book library average over $9 a week! They listened to their Rich Dad and made money work for them. He was so proud that they came up with this all on their own. But they would not have gotten far at all, if they did not have the financial foundation from Mike's father.
This book has been such a good read and as simple as it is, it's a real eye opener for me. Robert Kiyosaki stresses all throughout the book about growing your financial intelligence, not your investments. The smarter you are, the risk of investing is reduced significantly. I'm a big believer in that!
Robert Kiyosaki's Rich Dad Poor Dad – BOOK REVIEW #read #goodbooks #about #godandmoney
The book is so cheap on Amazon.
Click Here or click on the image to get your copy of:
Robert Kiyosaki's Rich Dad, Poor Dad! What The Rich Teach Their Children About Money, and What The Poor and Middle Class Do Not!