Money Monday – Lessons from ‘Rich Dad Poor Dad’ by Robert Kiyosaki

“Great opportunities are not seen with your eyes. They are seen with your mind. Most people never get wealthy simply because they are not trained financially to recognize opportunities right in front of them.”

― Robert T. Kiyosaki, Rich Dad, Poor Dad

Not having enough income or no income at all can make becoming wealthy a dream that’s only afforded the elite few. We’ve been taught that only super high income earners and people born into money, can become wealthy. Yes they can get richer, some lose their wealth, but it does not mean that you cannot create your wealth too.

“Rich Dad Poor Dad’ challenges these misleading beliefs about wealth and demonstrates how you can start your way to creating your own riches. He illustrates this with a story about his real father, a teacher who made a good living but struggled to make ends meet, and his friend’s father who had little education but ran multiple businesses. The latter opened up a new world to him by introducing him to financial education outside of school.

Here are the lessons you’ll learn from this book:

Lesson 1: The rich do not work for money but rather it is money that works for them. He explains how greed and fear affect our financial patterns and how they can make us work so hard for so little just for security.

Lesson 2: Teaching financial literacy is of supreme importance and it should start at an early age. It’s not about how much you make but how much you keep (This reminds me of ‘The Richest Man in Babylon’). We have many professionals and highly educated people who are excellent at their jobs but are not so good with personal finances. He stresses that one needs a strong financial foundation and in addition, an education on how to manage money.

Lesson 3: We spend time minding other people’s businesses and less on our own. You could spend a lifetime working for someone, making them money and end up with nothing for yourself. Here he introduces Assets and Liabilities and the importance of acquiring assets, and reducing liabilities and expenses.

Lesson 4: It’s crucial to understand tax and its advantages. Business owners earn, spend and pay taxes, while employees earn, pay taxes and spend what is left. If you want to earn wealth you should make it your business to know as much as you can about your tax legislation.

Lesson 5: Financial IQ allows you to see opportunities where others don’t and to act on them. Wealthy people create their own luck and end up inventing money. Whilst money may seem like the greatest asset you can possess, it’s actually your mind that is your greatest asset.

Lesson 6: He points out how when it comes to money, the only skill that most of us know is to work hard. A lot of people work hard at a secure job and focus on the pay and benefits, which is short-term vision. He suggests learning another skill, one that will help increase your income.

Lesson 7: Robert lists five main reasons financially illiterate people may still not have abundant cash flow: fear, cynicism, laziness, bad habits and arrogance. How these are managed makes a difference between people with wealth and those without.

Lesson 8: How do you start?  Some of the things advises us to do are to find a reason greater than reality. Make a daily choice to be rich, associate yourself with the right people, and be aware of the power of learning quickly. Master your self-discipline and pay yourself first (‘The Richest Man in Babylon).

Lesson 9: Some few more things to do:

  • Take time to assess what’s working and what’s not.
  • Learn from someone who has done it before.
  • READ! Take classes and go to seminars.
  • History has good lessons, learn from there.
  • Take action.

There’s a whole lot more in the book that you can read, the above are merely to show you the kind of knowledge you will gain from it.

Overall, this is an easy book to start on your financial literacy journey. I would recommend that people read it as early in their lives as they can. Give it to a younger person as a gift or someone with little to no financial IQ. You can use it as a tool to gaining financial freedom. I’ve read other books on the same subject and this is one of the easiest to understand.

I hope this helps you on making a financial difference in your life. Enjoy!

Here’s What You’ll Learn From Robin Sharma’s ‘The Leader Who Had No Title’.

“Getting lost along your path is a part of finding the path you are meant to be on.”

― Robin Sharma

Robin Sharma writes about leadership and its benefits using a fictional story that highlights the lessons and tools of leading without a title. Blake Davis, who lost his parents and returned from the army now works at a bookstore down in SoHo and has resigned himself to a mundane existence. He meets Tim, an eccentric-looking old man who’s transferred to his shop, who introduces him to the concept of leading without a title.

Tommy introduces him to the idea that anyone, at any level, whether CEO or janitor, can lead without a title. He takes him to meet four teachers who introduced him to this philosophy of leading without a title. Each teacher imparts core principles, summarised in acronyms to make it easier to remember.

Teacher #1: A high-end hotel housekeeper. She believes that the work she does is essential to the smooth running of the hotel and so she does it to the best of her abilities. She emphasises that you do not need a title to lead. Her five core principles are in the acronym, IMAGE.
Innovation
Mastery
Authenticity
Guts
Ethics

Teacher #2: A former skiing champion who advises that turbulent times build great leaders. His acronym is SPARK.
Speak with candour.
Prioritize
Adversity breeds opportunity
Respond vs react
Kudos for everyone

Teacher #3: A former superstar CEO who says that the deeper your relationships, the stronger your leadership. His acronym is HUMAN.
Helpfulness
Understanding
Mingle
Amuse
Nurture

Teacher #4: A famous massage therapist who shares that to be a great leader you have to first become a great person. His acronym is SHINE.
See clearly
Health is wealth
Inspiration matters
Neglect not your family
Elevate your lifestyle

There are more acronyms throughout the book and more quotes, and the writing itself sounds like a string of quotes put together in paragraphs to create a story. However, as tiring as that kind of writing can be at times, it does have a lot of lessons that you can implement to create a happier and meaningful life. I found this idea of leading without a title to be excellent advice, because it can help make you feel significant and inspire you to do your best in everything, in your personal life, and in your career.

The Leader Who Had No Title may not be so great in storytelling but it does fulfill its purpose, and that is to teach the fundamentals of leadership, to teach how to embrace fear and live your best life. If you’ve read any other book by Robin Sharma you’ll notice the similarities. I recently read The 5AM Club and noticed that in both books you have the main character(s) living an unfulfilling life and meeting an old eccentric man who invites them on a journey to learn philosophies that help them change their lives for the best. If you look past the shortcomings of storytelling, you’ll appreciate the tools he presents in the book.

Enjoy!