The rich do not work for money - Rich Dad Lessons

Based on Kiyosaki’s work

The rich do not work for money - Rich Dad LessonIf you have a job and someone asks you why you work, what would be your answer? The more fortunate people would answer the job makes them happy. However, in some cases it would be a lie that people want to be true. If it is true, then the life can be really enjoyable for those people who love their jobs.

Other people would answer they have a job to learn some skills. That is a great answer and an excellent way of thinking. The jobs are a great opportunity to learn a lot of types of skills: from interpersonal relationships to managerial abilities. In fact, from a good financial point of view, it should be the only reason to get a job unless it really makes us very happy.

Finally, most people would have to answer (and some people lie) that the reason to have a job is because they need to pay their bills. And that includes to sustain their families and afford their living.

I would say that the proportion between people, who work because they really enjoy their job, and those who work to pay bills is almost the same proportion that exists between the rich people and the poor people. Perhaps, a lot less than 10% of employees are really happy in their jobs. And when one person is really happy in a job, then the work becomes like a hobby.

But the hard reality is that approximately 90% of the employees are working in order to pay their bills. Fear takes control. They have fear about not having enough money. They only think about paying the monthly bills, and they cannot see the whole picture that would show them another way of life. Basically, the fear is the most destructive emotion we can have in our financial life.

But fear is not the only destructive emotion. The extreme greed is also destructive. Employees also feel it. Every time they get their check, the greed (or desire) comes in. They go out to spend their money on things that they think might make them happy, but at the end of the day, the “happiness” is only temporary. And again, they need more money to pay for a bigger house, a better car, more beautiful clothes, more expensive vacations, new jewels, high technology gadgets, and so on. Fear always comes back to them at the end of the month, and some people take a “risk” by asking for a pay rise. If they get it, then they are happy for a while, only to realize later that more money doesn’t solve the problems of living with fear. Most of the time, more money means more debt. Many middle class people feel this way.

On the other hand, if you think like rich people think, you will realize many of them learned how to control those emotions: the fear and the greed, although these emotions are always present. Fear and greed are the two main emotions that people need to overcome in order to improve their financial situation.

Rich people don’t work for money. On the contrary, they find ways to put the money to work for them, even while they sleep. To achieve it, they almost always use two resources: either the time of other people (people who work for them) or the money of other people (for example, from the bank). They either own businesses or they invest money to receive residual income. Usually, they take calculated risks. That is because they have knowledge and experience.

Creating a part-time business and learning investment strategies are two things you should try if you are not happy in your job. Also, keep in mind that other people’s time and money are powerful tools if you are able to use them efficiently and legally. They can be much more profitable than any salary increase.


Why I think the Law of Attraction is not enough - Rich Dad Lessons

Based on Kiyosaki’s work

Why I think the Law of Attraction is not enough - Rich Dad LessonsAt the moment, we have in the western world, a big interest for the Law of Attraction and its implications for the life of human beings. Since 2006, with the presentation of the movie “The Secret”, a lot of people have been “attracted” by the theory that establishes that whatever thing human being wants can be gotten if he focuses the thoughts in a way to attract experiences and facts benefit him.

Basically, the Law of Attraction says what happens to a person is determined by the thoughts and would explain why some people fail (despite efforts): maybe, they are plagued by negative thoughts. Meanwhile, other people seem to always get what they want with minimum effort.

I have to say that, in principle, I agree that negative thoughts are really destructive. Also, being optimistic and thinking that we can face any situation are necessary conditions for success. The problem is a necessary condition is not always a sufficient one.

Surprisingly, the Law of Attraction seems to be based on the quantum physics. In the past, I heard the same thing with New Age: it is a movement where thoughts are focused on the people having a connection with the nature and the universe. The funny thing is only a few “new agers” know the concepts of quantum physics, although they are taught to high school students.

The problem I have with the Law of Attraction is it doesn’t talk about abilities. It seems the positive thoughts were the only requirement for success. That is to say, the Law of Attraction establishes that by focusing on thinking about something, we will always be willing to act to achieve what we want. What the Law of Attraction forgets is we do not all have the same abilities. Although there are a lot of people willing to act, not all of them have the appropriate knowledge in spite of their positive intentions.

On the financial world, for example, when a person, who has never had experience, wants to start a business, it is dangerous to think only by focusing on positive thoughts, the business will be successful.

To build a successful business, you need knowledge and experience. It is not very probable you can build a successful business only because you think it will be successful.

Sure, it is good to be positive, but that is not enough. According to the Rich Dad philosophy, success requires education and experience and, in fact, the failure is an important part of the road toward success. No matter how positive you are: sometimes you will fail. Watch the nature closely: it has cycles, one behind the other. Life is cyclic, too. Cycles of success and failure.

Positive thinking is important and thinking we can achieve what we dream is positive. But the thoughts or ideas are nothing without abilities. Think positive, but please also learn what you need to succeed and don’t be afraid of failure.


There is a need - Rich Dad Lessons

Based on Kiyosaki’s work

There is a need - Rich Dad LessonsDo you know what’s the most dangerous advice you can give a child? It is this: “Go to school, get good grades and look for to safe secure job”. That is an old advice that was good for a short time but nowadays, in a fast-changing society, trusting in job security is surely a madness.

However, this advice is still given by 90% of the parents in the world at any moment of their children’s life. And this advice is also given by the schools that educate their students by teaching this mentality: “Get good grades and look for to safe secure job.”

Schools are antiquated. The same happens with governments. They have not been able to maintain the quick rhythm of the changes in the information and knowledge society. And that has had, has and will continue to have very serious consequences for people around the world.

There is a need. The need to change the educational system in order to adapt it to today’s world, so students realize the job security is a myth. Besides that, the students should make an effort to learn how to control their destiny without depending on the government or a company. The schools should teach financial education to people, especially about accounting and investment topics.

However, how can the teachers teach what they have not studied? They are employees and they were educated to put the future in other people’s hands. How can they teach financial education when they have a paycheck-to-paycheck lifestyle? How can they teach what they don’t know?

I am not saying education is not important. Parents should make an effort in order to pick the best school for their children and they should encourage their children to choose a career. But also, it is necessary to encourage the entrepreneurial spirit by preparing the children mentally, so eventually they can become business owners and learn how to invest money wisely in real assets instead of spending on silly luxuries or knick knacks that they don’t really need.

Also, I am not saying that having a job is a bad thing, but a job should be an opportunity to learn something or raise an initial capital. Life should not depend on a job. When we finish school or college, it is necessary to learn or practice some subjects as sales, or skills for a business, or interpersonal relationships. Sometimes, getting a job could be a way to improve those abilities. But spending some years learning a lot in an employment is different than working for others all your life and hoping that your boss will take care of you, always.

There is a need if you want to have a better financial life. It is the need to change the mind and play by smart rules in the money world, not by established rules where you have to work as an employee all your life.

The job security is financial slavery. Freedom to control your destiny is better for building a solid financial future.


Rich Dad Lessons: The Quick Reference Guide To Wealth

Based on Kiyosaki’s work

Rich Dad Lessons: The Quick Reference Guide To WealthAlan Jacques is President of a successful Canadian company and excellent teacher of subjects related to money, wealth and entrepreneurial businesses.

This is his Quick Reference Guide To Wealth inspired by Robert Kiyosaki’s work:


  Broke Masses Successful Middle Class Investor Rich
1. Who Employees Employees & Self-Employeed Business Owners & Investors
2. Education Highschool or college graduate - Values Education, often college graduate
- Attends course and seminars on investing
Values only “street smart education”, often aquired from peers and/or self-learned
3. Major financial goal To survive until next payday To build up a significant net worth by age 55-56 Freedom
4. Focus Salary or hourly wage Net worth Cash flow
5. Cash Flow Management (CFM) “How much do I have in my wallet?” Understands the value of CFM Understands that CFM is the foundation to all wealth
6. Definition of an asset A 6-pack in the fridge Anything that has market value Anything that produces a positive cash flow
7. Home Would like to own one One of their most important assets A home is a liability, not an asset
8. Investment vehicles -Government pension
- Lotteries
- Mutual funds
- Blue chip stocks
- Real Estate: condos, houses & duplexes
- Stocks: IPOs as investors and/or key shareholders
- Real Estate: larger projects
- Businesses
9. Investment sources The government Invests in financial products created by others Creates products and services to sell to the Middle Class and the masses
10. Investment systems Hope - Dollar cost averaging (DCA)
- Low down real estate systems
- Create their own or modify others
- Often learn from other rich investors who are their peers
11. Expected rate of return Get rich quick 12% to 30% 50% to 500%+++
12. Risk Has no idea how to evaluate it Accepts moderate risk Most investments are low or very low risk
13. What works If it doesn’t work, keep doing it Learn what works and keep doing it no matter what Keep learning and innovate, innovate, innovate
14. Time horizon Next payday Long term Tailored to each goal or investment
15. Real estate Would like some Buy & hold, waits for it to go up in value “You make money when you buy, not when you sell”
16. Most valuable resource Paycheck Investments Time
17. Why work? Work for the weekend Work for money of which 10-20% goes to investments Money works so they don’t have to
18. Advisors Broke friends & family Financial planners, accountants Themselves, each other, coaches, selected professionals
19. Resources TV - The Millionaire Next Door
- The Wealthy Barber
- Rich Dad/Poor Dad
- The Cashflow Quadrant
- The Cashflow Game
- Robert Kiyosaki tape sets
20. Key indicator event Savings account with $100 in it $1 million net worth Passive income exceeds expenses
21. Questions and Answers Don’t really understand the distinction Asks questions and seeks the right answer Knows there are many answers
22. Delegation “If you want it done right, you have to do it yourself.” “You can delegate what you don’t know” “If you don’t know the fundamentals, you can get slaughtered!”



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Rich Dad Lessons: The power of Faith

Based on Kiyosaki’s work

Rich Dad's Lessons: The power of FaithOk, let’s say you know financial freedom is important. You have studied by reading books, attending seminars, learning about business / investments and now you need to take the first step.

In this point, something stops you. You know what it is, and now you have excuses for everything. You have doubts about starting your own business or doubts about investing small amounts of money in something that you know could be profitable.

This feeling can be very strong, although it only exists in your mind. This feeling is called fear.

Fear is the bigger mental enemy of people. It paralyzes us. It forces us to find excuses. It makes us imagine tragedies and bad things that maybe will never happen.

In this point, we should demonstrate what we are made of. Probably, most people forget their dreams and their plans. Most people simply resign themselves and set the alarm clock in order to go to work the next day again, although it is not what they want to do for the rest of their lives.

We need to overcome the fear. If the fear dominate us, we will be in trouble. If the fear dominate us, it is because we let the tiny person found inside each of us beats the person that is bigger and that bigger person is also found inside each of us.

And to overcome the fear, we need two things: common sense and faith.

We need common sense: the fear only exists in our mind the same as the excuses we invent. The common sense should make us think about our future. If our future depends on an employment, actually that is more frightening.

We also need faith. If we are believer, probably we need faith in a superior force. But, mainly, we need faith in ourselves. If we don’t believe in ourselves, it is very difficult to achieve our goals.

Forget what people think about you. Think good about yourself and focus on your goals. HAVE FAITH IN YOURSELF!

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