Nobody ever taught me how to get rich. Nobody ever taught me in any school or university how to get rich. Yet still it is the most important goal, that all of us are desperately trying to achieve in life. Then why isn’t there a course in University dedicated to this topic that fascinates us all?
Are we supposed to get rich by working very hard in a regular job? Or should we all try to become an entrepreneur or just get lucky on the stock market? Why is nobody teaching this type of stuff to us in high school?
The fact is that if you want to get rich, there is no single formula or answer to help you reach that goal. But by observing other successful people and reading their books, you can develop an unique skill. The type of stuff they don’t teach you at school. Although education is important, from start to finish one is only conditioned to work in a fulltime job only. It seems almost as if nobody even wants you to get rich.
Understanding and practicing the main tips from this book, will help you understand the fundamentals to becoming rich. It will help you in realizing, that time and money are two thing that need to be very carefully spent. If you are going to be reading self-improvement books and you want to do your child a great favor before going to college, you should definitely start with this book. You owe it to yourself and to your children.
Here are the key tips from the book, on how to become a millionaire and why you should keep on investing in yourself:
1. Rich people buy assets, Poor people buy expenses
Poor people buy luxury products or immediately spend their money. As a result, the money immediately disappears and cannot grow. Rich people however invest their money. They put their money to work on the stock market, invest in their knowledge and personal development by reading books.
The key takeaway here is that you must know the difference between an asset and a liability, and buy only assets. If you want to be rich, this is all you need to know. This may sound absurdly simple, but most people have no idea how significant this rule is.
Invest your money by buying all kinds of assets, not liabilities. Neither expenses that only increase your debt and don’t generate additional income or value. And reinvest all the profits from your initial expenses too. As this reinvestment process continues, you are well on your way to becoming richer, every single day.
2. You’re instantly poor the moment you give up
In his book, Kiyosaki reiterates that you should never give up. As a matter of fact, the moment you give up you will become instantly poor. By trying and failing, you are actually already succeeding and building on your experience.
Never give up and no matter how many times you have failed, you will eventually succeed. Keep this in the back of your mind, when times get tough. Keep going. Don’t quit. One primary difference between a rich person and a poor person is how they manage fear.
Don’t let fear of failure stop you from achieving great results and accomplishments in life. By failing and trying to accomplish something, you are already miles ahead of the people that don’t try at all.
3. Start minding your own business
From the moment we are born, we are instructed by all kinds of people, that an education, preferably university degree, and a good 9×5 full time job, are the most important things to achieve in life. It is true that a very good education and very good job, can lead to amazing and very good things in life.
But like in investing, why do you want to be dependent on only one source of income and investment? What happens if you lose your job or the economy crashes? You need to diversify and spread the risk.
Many of us don’t have any plan B. But I can guarantee you: in your life there will be multiple occurrences, when you get exposed to very tough circumstances and situations. Don’t just dedicate all your time and resources only to your full time job and getting that paycheck every month to settle your bills and pay for your vacation.
Keep your daytime job, but start buying real assets, not liabilities. And invest in yourself, your personal development and how you could possibly start your own business too. In other words….. Start minding your own business too.
4. Grow your Financial IQ
“There is gold everywhere, but most people are not trained to see it”. Therefore you must train and grow your financial IQ. Before you invest your money into something, you need to understand how money is created and learn how it can work for you. And understand that you should not just work for the money, but try to find ways to let money work for you.
According to Kiyosaki: “Money should listen to you and you control it. To be the master of money, you need to be smarter than it. Then money will do as it is told. It will obey you. Instead of being a slave to it, you will be the master of it. That is a key principle to financial intelligence. There is a always a need for financial training. Without financial training, we all too often use the standard formula to get through life: Work hard, save, borrow, and pay excessive taxes. Pay yourself first then the government I firmly believe in paying my bills on time. I just pay myself first. Before I pay even the government”.
5. Power of choice and the mind
Everyday we receive an amazing 24 hours. 24 hours which we can spend the way we want to. For sure most of us will need to spend 8-10 hours, on a full time job including travel time. But what about the remaining hours?
We have an amazing choice everyday, how to spend our time. Will we sit passively in front of the TV every night, staring at our phones or watching Netflix? Or do we invest in ourselves by working out, reading books, engaging in deep meaningful conversations and listening to our partner and friends. We need to understand that with every choice and action that we take, we are either getting closer to our goals or moving further away from them.
What I am trying to say, it that both time and your mind are your most important assets. It cannot be reversed or reclaimed once it passes. Spend your time wisely and use part of your day to invest in yourself. We are in full control of our mind and the decisions that we make.
A very important section from the books reads as follows: “With each dollar bill that enters your hand, you, and only you, have the power to determine your destiny. Spend it foolishly, and you choose to be poor. Spend it on liabilities, and you join the middle class. Invest it in your mind and learn how to acquire assets, and you will be choosing wealth as your goal and your future. The choice is yours, and only yours”.
Think about it and also when you go to work. Work smart, not just hard. And question yourself according to this important phrase of the book: “Am I building a pipeline or hauling buckets”?
Thank you for reading and I hope you enjoyed my article. If you share it, it will make my day. And Many Thanks to Robert Kiyosaki for writing this great book. You can order your copy here on Amazon.