I have to say, that there are a lot of things that interest me in life. One of those is reading a book of interest and writing a quick review on it. I have to say, that if you are someone who is looking to become rich, or an entrepreneur, then this is a really good book to start with.
The book is a really easy read (I could have finished it in two days but decided to finish it in three cause I wanted to take away the message that Robert was teaching), and you spend the first couple of pages learning about Robert Kiyosaki and what his life was like in Hawaii growing up. As a nine year old kid, he grew up with two dads. As Robert puts it, he had one dad who had a PhD and the other dad didn’t even finish the eighth grade.
Now when looking at this, we can all assume that by today’s standards, that the rich dad was the one who had the PhD. However, as you read along, you will learn and see that the dad who didn’t even finish eight grade ended up becoming one of the richest men in Hawaii, while the other dad would end up dying and leaving debt for his children to have. How can a man, who didn’t even finish the eight grade, be one of the richest men in Hawaii? Put simply, its what they did with their thoughts, time, and money.
Robert teaches the importance of studying financial education. Sadly, schools will not teach this to students these days because they teach the importance of getting a good job, with benefits and a stable career. If you want to become financial free, you need to start studying money and how it works. Let me give you an example to understand.
Robert says that there are three difference between the poor, middle class, and the rich. Poor will buy stuff with their money, the middle class will buy things that they considered to be assets but in reality, they are liabilities, while the rich buy assets that produce cash flow. It makes perfect sense when you think about it. Rich people will study how to make more money when they are out of school. They will figure out what the best options are for their money and put their money in those places. Which will produce more cash flow for them.
Why don’t people do this? Well it is based off what you study. As Buddha once said “The mind is everything. What you think you become.” So, if you think about sports all the time, then you will know ever single stat for the sports team or teams that you follow. If you study the body to become a doctor, then you will know everything that there is to know about the body. Likewise, if you study financial education, and figure out how to make more money, then you will make more money.
Robert has a chart in their that says income statement with two boxes that says income and expenses. Then there is a second chart that says balance sheet which has assets and liabilities. When you read the book, it will give you an idea of where you are putting your money. This book can teach you how to start the path of becoming financial free. It won’t be easy, but I think I would rather become financial free, then become a slave for the rest of my life.
How can we become financial free? Well the obvious ones are stocks, bonds, real estate, and owning business. There is a sector for all class of people based off their financial situation. What other ones can you think of when you start to think about your financial education.
Remember cash flow is king and that is how the rich keep getting richer. I would highly recommend that if you want to become rich, then you need to start studying financial education and how to create more cash flow. However, reading this book will start the path for financial freedom.
(Note: I am not a financial adviser of any kind. This is a matter of opinion on what is needed to become rich through studying of my own choosing. Each person is in a different financial situation and shouldn’t base buying things based off what I say. Please do your homework before investing in anything so that you can put yourself ahead in life. My financial education is always going to be learning cause I will most likely make mistakes along the way. This is purely a book review on what we need to be learning.)