Recently I have been very interested in trying to figure out better ways to make money (don’t we all?). In particular ways for my money to work for me instead of me having to work for money. A buddy of mine told me I should read this book “Rich Dad Poor Dad” and after I started watching YouTube videos of the founder Robert Kiyosaki, I was immediately hooked. I ordered the book and 2 days later it was here. Once I started reading I could NOT put it down. This book was right up my alley and I have learned a lot from it.
For starters, this book really nails home some major points. First is that we are all groomed to believe we should get an education, get a job, and be happy. From the beginning that is what 99% of us are told to do. An education is the key to everything, or so we’re told. This book doesn’t discredit that, however it tells us that education is not everything if you don’t know how to make money and you’re not financially smart. The type of ways to make money that are not taught in schools, are taught in this book. The ways the wealthy make money which is for their money to make them money. The rich don’t work for their money.
Buy assets, NOT liabilities. We all have liabilities and there’s no denying that there are some we have to have. Our house for example, is a liability.. Why you say??? Because it costs you money and takes money out of your pocket. An asset would be something that puts money IN your pocket. Buy good debt, and buy assets that make you money. That is the key and the theme to the story of how you can become financially independent. Get enough of these passive income streams and soon you can kiss your 9-5 goodbye as you watch from the rearview.
I won’t take away any more of the points from the book, and I HIGHLY recommend that you read it. However I will say the criticism is harsh on the younger generation and it is likely to hurt your feelings. And you know what, I’m DAMN GLAD it is because you need to hear it. It is not about your feelings or making you “feel good” it is about teaching you how to spend and save your damn money so you can buy assets and produce lifelong wealth. Do you want to work for someone all your life, dependent on them for your every move.. just waiting for that next paycheck to come in so you can pay off bills and have a little spending cash? I’m not sure about you but I’d rather not take that approach as it is what I’ve been doing for the past 10 years.
This book is a wake-up call to a generation that has no clue what the real world is like and they are sheltered by their parents hard earned money in the basement of some suburb. Parent’s don’t live forever and their money doesn’t either if you don’t know how to use it wisely. Cut back your liabilities and save for assets. An asset can be any of the following:
- Rental Property – producing income
- Stocks, bonds, etc – producing dividend income
- Notes (IOU’s) – producing interest income
- Intellectual Property – royalty income
- Businesses that do NOT require your 24/7 attention – producing monthly income
- Anything that makes you money while you own it, that you do not need to work for all the time
These passive income sources seem daunting at first but if you start with one, it can quickly snowball. All of a sudden your income starts to shift from your salaried job to your assets producing it for you. Once you get a taste of asset producing income you will only want more and more. And Greed is GOOD as it will keep you fueled to continue growing your assets column, while minimizing your liabilities. This is the goal that will ultimately get you closer to becoming rich and keeping your money. Now go forth, buy assets and reduce your liabilities.. There’s no better time than NOW.