Robert did a great job distinguishing what rich people know, and how they got and keep their money. I did not have a rich dad to look to for my financial training. My father was an engineer with Motorola for 30 years. He did very well for himself but I did not grow up in a home that was wealthy. My sister and I were taught that going to college and getting good grades was the pathway to success.
Robert Kiyosaki had a father who was the Superintendent for schools in Hawaii. He made a good income and told Robert to go to school and get a good education just like my dad told me. Robert had another Dad growing up, not actually his real dad but rather his friend’s Dad. His friend’s Rich Dad taught him about wealth in a way that was unconventional to his real Poor Dad. His Rich Dad did not have a fancy education. He believed in leveraging himself and owning assets.
Perhaps telling your kids to get a good education may not be enough. This seems to be an automatic thought process or conversation passed on from one generation to the next without much conscious thinking. I am not saying that it is bad; it just may limit your or your kid’s possibilities regarding wealth. If you do not examine your thinking, you may be missing out on something bigger in life.
Tips For Wealth From Robert Kiyosaki
1. The poor and the middle class work for money. The rich have money work for them. When I read this it felt like I had got hit by a ton of bricks. I really got that I was not rich. I was making very good money, well over six figures, but I never saw the invisible trap that I was in. I had no freedom. If I stopped working, the money I was making would stop immediately. When you are rich and stop working, your money continues to come in. This was an insight for me. I knew that in order for me to be wealthy I would have to change my thinking and my actions. I began to buy Real Estate as a long term investment strategy. The wealthiest people that I know own real estate, Donald Trump for one comes to mind. He is not doing to bad.
2. You must know the difference between an asset and a liability. Seems obvious but you would be surprised as to what the average person’s perception of what asset and what liability mean. Rich people acquire assets and the middle class acquires liabilities that they think are assets. The biggest example of this would be cars. Yes cars are valuable but they depreciate and require a lot of money to keep them going. The average car sitting in a garage does not send out monthly royalty checks to you each month. Owning real estate or a business does have the potential to send you a check every month.
3. Robert suggested the following as assets to own: businesses that do not require your presence, Bonds, Stocks, Mutual Funds, Income generating property, Notes & Deeds of Trust, royalty and anything else that can produce a monthly revenue stream.
In summary, reading Rich Dad Poor Dad changed my life. When I read the book I owned no property, after reading the book and a few years later I now own 3 residential properties. I live in one of my properties I rent the other two. My goal is to have 5 rental properties with no mortgages by the time I am ready to stop working. I also drive a 9 year old car that is paid for. I plan on keeping it until it is a road hazard. My car is not an asset. If I had not read the book, I would not being going down this path to prosperity. If you are serious about changing your life, you must first shift your context for wealth. Read this book if you have not.
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Debt Free Dave has been in the mortgage and consumer finance business for over 10 years. He has a Finance and Real Estate degree from the University of Arizona.
This Article is designed to be of general interest and should not be considered legal advice. The specific information discussed may not apply to you. Before acting on any matter contained herein, you should consult with your personal legal adviser.
