Rich Dad Poor Dad by Robert T. Kiyosaki
I cannot begin to stress this enough, if you are not aggressive in learning about money; how it works, how to accumulate it, how to invest it, how to save it, how to spend it and how to treat it, you will be another one of the millions of people who are waiting for lady luck to deal them a good hand. Whether through the lottery, their next big promotion, their “big break”or whatever other circumstance that they believe will happen to them that will bring them wealth, these people are stuck, not in ill-circumstance, but in a diseased mindset. Robert Kiyosaki explains in Rich Dad Poor Dad how to really understand money, and how to truly take advantage of it.
The average chance of winning the lottery is about 1/175,000,000. So I would pretty much rule that one out.
But what about the idea of finding that big break? What if we get discovered by usher for singing on YouTube, or we are walking down the street in LA and get chosen to play Thor in Marvel’s newest film? Once again, that would be amazing, but these are definitely not likely outcomes.
But now the big question, why would the big promotion we are slaving for, or that next higher paying salary job not fix our money issues? Because most of the time, it is not our income level that determines the amount of disposable income we have on a month-to-month basis. Because our expenses seem to increase with our income. We get that high paying job, and instead of knocking out our student loans or putting money into a business investment, we determine it is time for a ring for that lovely lady we have been spending so much time with. We have a nice wedding and it is time for the honeymoon. If our parents aren’t able to help us out on that, tradition would deem we hold the wallet for the excursion. In the heat of the “honeymoon phase” we are not as “careful” as we meant to be and find that the greatest gift in the world is in her tummy, growing day-by-day. With our new mouth to feed, we realize we need a bigger place, which means a bigger rent payment! If you think that’s just a little bit more, you might re-calculate how much it costs for a baby’s first year of life, and don’t even get me started on diapers expense!
The next big expense comes when we realize that we need a home, that we’re wasting too much money on rent. Let me pause here, it is one of the major points of misunderstanding to think that all homes always appreciate in value over the course of our mortgage. The world found this to be false in the mortgage crisis of 2008. Although real estate can be a very solid investment strategy, there are many variables to consider when buying a first home. Or better yet, what about when our old Volkswagen drops out from under us while we’re driving baby to day-care and we show up late for work. Time to grab that next expense and sign for a new car? This means another payment. Even if you buy a car that is 4-5 years old and is slightly used and you nail an amazing deal, you’re taking on another payment on a depreciating asset. Guess what a depreciating asset is that you’re making payments on is called… A liability.
Did all of this so far sound incredibly depressing and start to give you a headache? I think it just gave me an ulcer to write it all out! Wow… the american dream starts to sound a little more nightmarish when reality sets in. Think about if money was no longer the answer, but instead it was the tool. What if you could walk into each and every one of these absolutely incredible moments of life without cringing every time you looked at the receipt? What if finances didn’t terrify you and you were actually decreasing your debt month by month, you saw your savings or retirement growing, you were grabbing up new assets in your portfolio each year, and you even had the money to try things out! Ever had an idea for a new app? What if you work with your hands a lot and thought of an invention? If we realize that not every idea we’ve had has “probably already been done”, and we start to believe we could probably figure out a better way to do it, we could actually try these things! But we have to be prepared when those opportunities come, for they are gone in a flash leave us waiting for the next.
Each of these moments in life are meant to be enjoyed to the fullest. They are to be appreciated and cherished, but if we are not financially prepared, the greatest joys in life could become the greatest burdens. Do yourself a favor and begin developing your financial savvy.
I am writing all of this out because in our busy lives we sometimes don’t have time to stop and think through it all. But we absolutely must address it. I just read Rich Dad Poor Dad by Robert T. Kiyosaki. I was absolutely blown away with his ability to simplify complicated financial concepts into extremely easy to understand principles. This book will help you feel confident walking into your future of finances, and will probably shake up a lot of the absolutes that you’ve been raised to believe! He goes through 6 lessons of brilliant perspective on how we should view, use and grow our wealth. You can also listen to the Rich Dad Radio Show, or grow your education further with some of Kiyosaki’s other books like Cash Flow Quadrant and Guide to Investing. I will soon release more books to increase one’s financial understanding, but this is the keystone read of one’s financial schooling. I think it should be required in every college in the nation. It is simple, it is rich, and it could possibly change your entire future.
Take the time to read it, and if you have thoughts on my review, I would love to hear from you! I am always open to comments and suggestions! You can purchase the book through amazon in the link below, and don’t forget to subscribe!
You can find Robert on twitter at @therealkiyosaki
or on Instagram at therealkiyosaki