Growing up from a young age many of us are not or were not taught about money and the principles to grow our money. The most you learned about money was likely in an accounting or business class unless you were fortunate to be taught by parents who were intentional enough to take the time to teach you. Schools do not teach us the subject of money and it is done by design because of an agenda to keep average people in bondage.
Life has taught me that you are never free until you are financially free. Getting up daily to go to work for at least eight hours a day for an average of five days a week for forty years of your life is the norm in today’s world. Do you think God created you to live most of your life like this? Just to spend your life paying bills and never having enough time to enjoy it and doing meaningful things?
Knowing that the school system will never teach you how to be successful in the area of your finances should serve as a wakeup call that you have to take control of your financial destiny. While the school system will not teach you about becoming financially successful there are financial experts that you can learn from such as Robert Kiyosaki.
In this post we will review some of the lessons from his book, “Rich Dad’s Guide to Investing” which gives guidelines on how you can become a financial success. Ideally you want to start investing at a young age but no matter where you are in life today is a good day to begin.
In all honesty investing can be a confusing subjecting because there have been various ideas from different people about it. Some people invest in vehicles such as real estate and business stocks and many other things. Today there are also cryptocurrencies that are becoming a phenomenon like some of the tech companies that were founded in the early 21st century.
The most important thing about investments is to understand them before you jump into them. It is a good idea to get guidance from people that are already successful in the investments you are considering.
Investments of the Rich
In a section of the book Robert Kiyosaki highlights that rich people have investments that the average Joe does not have. The difference between the rich and the poor is that the rich buy assets that make them money which are too expensive for the poor to buy. The major distinction is that rich people build businesses that can afford them the opportunity to buy such assets like property for example.
Poor people that only have once source of income cannot afford such investments because they can only afford the daily bread and butter matters to feed their families. Rich people build businesses that afford them the opportunity to buy their income generating assets while poor people do not, that is the difference.
If you are not in that position today to buy these huge assets start where you are with what you have. What you need to do is establish goals that you want to pursue financially and get guidance to make a financial plan that will help you achieve them. Not everyone wants to be rich and that is fine. There are different financial plans for every level.
The three financial plans that Robert Kiyosaki points out in this book are as follows:
To be secure
Being secure entails having your basic needs met through having a guaranteed monthly income such as a job to take care of your daily needs. These needs include medical care, shelter, food, and clothing. This is where most people begin and end and they are happy to stay there.
Security is the major priority for the people that prioritize getting a job that pays their bills and meets their basic needs. These are the people that will work forty years of their lives for 40 hours a week and retire on around forty percent of their income.
To be comfortable
More than just having security there is another group of people that want to be comfortable and experience the finer things in life. These people may want to travel to a different destination every year, buy a nice home and nice cars, send their children to good schools, etc.
This is a step up from a plan to be financially secure and a fairly good number of people make that transition from security to comfort. These people may have some investments that enable them to fund that lifestyle so that they live comfortably.
To be rich
Rich people own their lives and have multiple investments that fund their lifestyles and never have to worry about having a job to make money. They have time and financial freedom allowing them the opportunity to live life on their own terms. In most cases they have built successful businesses that enable them to make investments that bring them great returns.
Only rich people are able to buy these investments and not people in the other two brackets. Rich dad says in his book that getting rich is automatic as long as you have a plan and stick to it. It is a process that takes time but as long as you are disciplined you too can become rich.
You may be sitting there and thinking, “I want to be rich”. That’s great. While your priority is to become rich it is a good idea to begin with your plan to be secure followed by your plan to be comfortable and ultimately your plan to be rich. Decide what you want to achieve with your life and get guidance to help you make the necessary financial plan to get there.
If you have not read this book be sure to get a copy and learn more about the subject. If you have read the book be sure to let us know what you learned in the comments below.Open modal