This week’s featured book is one that has been around for a while – Rich Dad, Poor Dad by Robert Kiyoaski. This book takes a deeper look into what kind of mindset you have. The book describes Robert’s Dad, a teacher and who had one philosophy of money vs. his best friend’s father who owned 7-11 like stores in Hawaii, with a very different view of money.
This book does a terrific job of teaching us how we think about money and our job. One thing this book talks about is the human psyche and our emotions around fear and greed. Fear of not having money motivates us to work hard. Once we obtain that paycheck our greed sets in thinking about all the amazing things we can buy, so we end up in a redundant pattern of “work, pay bills, get up, go to work, pay bills”. If you are offered more money, would you spend more or would you live the same lifestyle? Most people chase paycheck to paycheck, job security, and climbing the corporate ladder. This is because of our desire to keep our lifestyle and fear of not having enough money.
One of my favorite quotes from the book is “a job is only a short term solution to a long term problem.” We are only concerned about the bills that are due at the end of the month and somehow we always let money run our life! One solution is to pay yourself first at the beginning of the month and determine what is left over to pay your bills instead of the other way around. If you come up short on your bills, the book argues that you will find innovative ways to increase your income to pay those bills. Let your income and assets drive your life to riches instead of having liabilities and expenses hold you back. Assets create income and liabilities create expenses. For example, most people think their house is an asset, but in reality it’s a liability. It moves money out of your pocket (taxes, insurance, mortgage payment). Why I chose to pay down our principal
My only negative comment about this book is that Robert made a lot of money in the real estate industry. I feel that this can’t apply to most people. The reason is that most people do not have the financial ability and understanding to invest in real estate. Nonetheless, the lessons that Robert teaches in this book could still apply to other investments.
This book does a good job of teaching you the difference between an asset and liability. It also teaches the importance of financial intelligence. I love the theme of the book and how it challenges you to think about entrepreneurial mindset rather than employee mindset.
PS: Are you ready to shift your mindset for good? Join me in Infinite Receiving 4.0
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