Written by Robert Kiyosaki in 2001. Rich Dad Poor dad deals with a concept of how people struggle with financial woes. His whole literary expertise is based upon spend years in school and learn nothing about money or investments. People are bound to money instead of money being bound to them.
The book correlation a simple concept that most people will work for money but rich people make money work for them. Some consider to be a myth, Not possible but in these isolated times this is as true as the 14 commandments.
The first step towards generating wealth is generating a basic income. IF you have no assets and no skill you can sell it for money. A job is considered to be the easiest way to produce cash. Rich people don`t stay in the job phase very long. Being rich and being wealthy are two separate concepts when someone thinks about it. Being rich correlates to a short term plan. Whereas Being Wealthy correlates for a long term plan.
Making money and many new ventures to generate a steady income at some times is easy as well as complicated. But creating sustainability is hard. Day in Day out takes a toll on many people.
The second key takeaway is that it doesn’t matter how much money you make but how much you can keep. People who save money are better examples of being rich than those who spend. Remember Spending more than generating will cause you the file a chapter 6 bankruptcy sooner than later so the question is raised How do I keep generating a new venture to keep the cash flow going? That where expertise comes. Rich people will find new ways to increase their wealth whereas a common man will only work the time.
What you can not live without and what you cant?
I can live without Netflix, I can live without television but I can’t live without the internet as its a necessity to do various things. I can live without a high priced car or a high price motorbike but I can’t live without fuel. Fuel gives me the incentive to travel and do a lot of things.
A full tank of gas is always important and in this epidemic highly critical. Normal days I can live with a half a tank of gas. We need to decide what is necessary and what is wanted? .We can have all of these things once we have financial stability but until that happens we need to invest in surviving the long run.
As of this moment, 35 million people have lost their jobs and finding new ones is going to be a hassle. They are pummeling through their saving to pay monthly bills some are worse to wear as they are not financially sound. The global unemployment has jumped ten-fold.
Another key takeaway that the book keeps reminding us is born rich and made rich. People who are born rich meaning they have big factories are less financially sound than people who are made rich. Made rich people are those individuals who that understand if there income or turnover is down they need to find new ventures to generate cash flow whereas born rich have to find whole new ways.
Made rich invest in assets that generate income whereas born rich invest in asses of value. Born rich will invest in houses cars and luxury items whereas Made rich will invest in an ad agency or investment portfolios to keep on generating income. Made rich will generate enough income to live comfortably whereas the Born rich will have to look for other options.
Jeff Bezos is the richest man, he invested in the Washington Post to generate a steady income. Instead of buying a huge yacht And lastly, the book defines the key component Financial struggle.
Financial Struggle happens to those who keep working the same job for countless years. Remember Time is critical and is money and People who spend 9-5 hours daily are bound to have financial struggle down the road. By having that they are more likely to follow illegal practices like corruption and bribes to increase their cash flows.
Always keep in mind that at a basic level you will always earn less than what you work for.
However, there is an easy way to get out of Financial Struggle. Be self-employed and create your own asset. Define your own direction. This might seem challenging but it beats the alternatives. Through this, you will generate enough capital to generate even more income streams Being Self-employed generates challenges and rewards. You set your time as well as your goals.
The problem is when a person graduates and gets a job he/she stops investing in themselves. We should not stop but keep on building skills. These views aren’t meant to make you hopeless or miserable but to give an insight. The book was written 20 years ago and to this day it keeps ringing that you still have a choice to make a difference. Still have a choice to make something worthwhile. 40 years ago having 9-5 jobs was worthwhile as the population cap was low. Fewer people meant more benefits. But as the population increased the rewards dwindled.
If you want to improve your financial situation you need to re-evaluate. The rich have already figured it out and are doing it. You can check the news on how they are laying off or investing somewhere else knowing the consequences this epidemic brings.
Financial Intelligence is important. It gives you more options than you can handle.