I was inspired after reading this book so I guess it would be my pleasure to share it with you guys.
The title of this book was “Rich Dad, Poor Dad” by Robert T. Kiyosaki with Sharon L. Lechter, C.P.A.
Actually it’s about how to get Rich, the common thing that most people wanted to know and wanted to learn.
There were 6 Main Lessons on how to grow wealthier no matter what happens in a world of increasingly change and uncertainty:
LESSON 1: THE RICH DON’T WOK FOR MONEY.
The Poor and the Middle Class work for money while the Rich have money work for them. Getting a good education and making good grades no longer ensures success. When it comes to money, most people want to play it safe and feel secured. They were afraid of taking the RISKS.
FEAR is the reason that keeps most people working at a job. Fear of not paying their bills. Fear of being fired and the fear of not having enough money. That’s the trade of price of studying to learn a profession or trades, and then working for money. But learning to have money work you is completely another different course of study. It is a lifetime study. They don’t teach in school on how to master the power of money. If you don’t learn it, you become a slave to money. The main cause of poverty or financial struggle is FEAR and IGNORANCE, not the economy or government or the RICH. A JOB is really a SHORT-TERM solution to a long-term problem. Its self-inflicted fear and ignorance that that keeps people trapped. The trap caused by 2 emotions, FEAR and DESIRE. It’s not enough just to get rich. If you don’t first handle fear and desire, and you get rich, you’ll only be a high-paid slave.
LESSON 2: WHY TEACH FINANCIAL LITERACY?
Money without financial intelligence is money soon gone. If you want to be rich, you need to be financial literate.the actual definition of rich is in the eye of the beholder. You can never be too rich.
LESSON 3: MIND YOUR OWN BUSINESS.
Financial struggle is often directly the result of people working all their life for someone else. Many people will have nothing at the end at the end of their working days. After not taken the time and invested into built your own business, you are now ready to add the magic touch--- the biggest secret of the rich. The secret that puts the rich way ahead of the pack.
LESSON 4: THE HISTORY OF TAXES AND THE POWER OF CORPORATIONS.
It is the knowledge of the power of the legal structure of the corporation that that really gives the rich a vast advantage over the poor and the middle class. The rich outsmarted the intellectuals, solely because they understood the power of money--- a subject not taught in schools. You need to know the law and how the system works. If you know you're right, you're not afraid of fighting back.
FINANCIAL IQ is made up of knowledge from a broad areas of expertise:
1. ACCOUNTING- also called the FINANCIAL LITERACY. The more money you are responsible for, the more accuracy is required, or the house comes tumbling down. It is the ability to read and understand financial statements. This ability allows you to identify the strengths and weaknesses of any business.
2. INVESTING- also called the SCIENCE of MONEY MAKING MONEY. This involves strategies and formulas.
3. UNDERSTANDING MARKETS- the SCIENCE of SUPPLY and DEMAND.
4. LAW- An individual with the knowledge of the tax advantages and protection provided by a corporation can get rich so much faster than someone who is an employee or a small business sole proprietor.
LESSON 5: THE RICH INVENT MONEY.
Once we leave school, most of us know that it is not as much a matter of college degrees or good grades that count in the real world. Outside of academics, something more than just grades is required. They called it GUTS, CHUTZPAH, BALLS, AUDACITY, BRAVADO, CUNNING, DARING, TENACITY, and BRILLIANCE. This factor, whatever it is labeled ultimately decide one's future much more than school grades.
Today, many people were struggling, often working harder, simple because they cling to old ideas. They want things to be the way they were; they resist CHANGE.
" The rich make money. The more real you think money is, the harder you will work for it. If you can grasp the idea that money is not real, you will grow richer faster."
The single most powerful asset we have is our MIND. If it is trained well, it can create enormous wealth in what seems to be an instant. An untrained mind can also create extreme poverty that lasts lifetimes by teaching it to their families. There is always a RISK, so learn to manage risk instead of avoiding it.
LESSON 6: WORK TO LEARN--- DON'T WORK FOR MONEY.
Workers work hard enough to not be fired and owners pay just enough so that workers wont quit. And if you look at the pay scales of most companies, there is a degree of truth in that statement.
Young people should seek work for what they will learn, more than what they will earn. Look down the road at what skills they want to acquire before choosing a specific profession and before getting trapped in the "RAT RACE."
- THE MAIN MANAGEMENT SKILLS NEEDED FOR SUCCESS are
1. The Management of CASH FLOW.
2. The Management of SYSTEMS {including yourself and time with family}
3. The Management of PEOPLE.
To be truly rich, we need to be able to give as well as to receive. Giving money is the secret to most great wealthy families.
MONEY is only an IDEA. If you want more money, simply change your THINKING. Every self-made person started small with an idea then turned it into something BIG. It's what is in your HEAD that determines what is in your hands. Learn to have money work hard for you and your life will be easier and happier.
TODAY, DON'T PLAY IT SAFE, PLAY IT SMART.
