My first introduction with Robert was on his book The business of the 21st century. That book challenged my thinking and helped me see things in a different picture. I got the chance later to read Rich Dad Poor Dad which.
You want to know how to get Rich?
This book is about Robert story. He had two dad. One who has a PhD, and one who didn’t finish 8 grade. Although both dad earned a significant amount of money, poor dad always struggle with money while rich dad was on his way to become the richest man in Hawaii. If you want to become wealthy, you can use the principle in this book.
Principle 1: The Rich Don’t Work for Money
In this principle Robert explained us that the rich don’t trade their time for money. Instead they acquire assets that make money for them. One of my favorite quote is “Most of the time life doesn’t talk to you-It just sort of pushes you around, and each push is life saying wake up.” Most people are control by two emotion fear and greed. I know people that say there are not interested in money, but they work 8 hours a day to get more of it. When don’t control properly ” Fear and desire can lead you into life biggest trap”
Principle 2: Financial Literacy
If you want to be rich “It’s not about how much money you make, but it’s about how much money you keep.” Intelligence solves problems and produces money, but money without intelligence is soon gone. Did you know that the rich acquire assets while the poor and the middle class acquire liabilities that they think are assets? To become wealthy you must understand the difference between Liability and asset. You can read more explanation about assets and liability here. All you have to remember is that assets put money in your pocket, and liability take it out of your pocket. That is the only rule you need to know if you want to be rich. So think about everything that is taking money from you, that is all liabilities.
Principle 3: Mind your Own Business
The book said that “The rich focus on their assets while everyone else focuses on their income statement.” To maintain this principle you need to maintain asset. It can be a real estate, a website, or anything that produces a positive cash flow for you every single month.
Principle 4: The Power of Corporations
Many people don’t know that corporations are the biggest secret of the rich. The rich use corporation to take advantage of taxes and protect their money. If you own a business and make decent money, then you need to setup a corporation. The book said to be rich you need to increased your financial I.Q. And to do so you need to increase your knowledge in accounting, investing, understanding markets, and the law. Corporation is the biggest legal tax loophole used by the rich to keep more of their money.
Principle 5: The rich invent money
This basically means that the rich sees opportunity to invent money. Great opportunity are not seen by your eyes, but they’re seen by your mind. The single most powerful asset that you have is your mind, and if you trained it well it can create enormous wealth for you. Another think the book said ” It is not the smart who get ahead, but the bold.” Which means the bold are risk takers , tend to make the most financial progress event if there aren’t as smart as others.
Principle 6: Work to learn-Don’t work for money
Rich people work to learn not for job security. If you want to get rich you should know a little bit about a lot of subjects. “Focusing only on a job will prevent you from becoming truly wealthy.”
Principle 7: Overcoming Obstacles
The primary difference between a rich person and a poor person is how they manage fear. Event if you have a great financial IQ there are many things that can hold you back for becoming rich. This obstacles are fear, cynicism, laziness, bad habits, and arrogance. Some people are so afraid of losing that they lose. Robert said “Every time I’ve been arrogant, I lost money because I believe that what I didn’t know wasn’t important.”
The Ten Steps To Awaken Your Financial Genius
Step 1: Find a reason greater that reality. Have a strong reason to pursue financial independence.
Step 2: Make daily choices. Choose your daily activities wisely to invest in your mind and goals.
Step 3: Choose your friends carefully. Be careful with who you choose to associate with.
Step 4: Master a formula and then move on to the next. Financial success is closely linked to how quickly you can learn new formula for making money.
Step 5: Always pay yourself first to enhance your self-discipline. If you can’t control yourself, don’t try to get rich.
Step 6: Pay your brokers well. It is hard to measure the power of good advice.
Step 7: Be an Indian Giver. Make investment that are free or other goodles.
Step 8: Use assets to buy luxuries. You should always buy luxuries with income from assets and not loans.
Step 9: Choose heroes. By having heroes, it becomes much easier to tap into your raw genius.
Step 10: Teach and you shall receive. When you need something, give what you have first, and it will come back to you in buckets.
This are some principles that I learned from this book, and it has help me a lot. And it that book he talked about an ideal business that everybody can start which is network marketing. I really recommend this book, and I am sure it will stimulate a wake up call on you like it did on me.
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