It is undeniable to say that we are living in a world governed by money. In an essence, we may convince ourselves that money has no significance in making our lives easy. However, the truth is, it is important and needed in almost every aspect of our basic living needs. As someone who invested more in the science and health course of studies since high school. I knew almost nothing about financial education. And as a young aspiring professional, I realized how important it is for one to at least have a basic understanding of their finances.
I have recently been reading and studying the book, “Rich Dad, Poor Dad”. Reading it has helped me look at life from a different perspective. The author explains how a change in perspective makes a difference. It also in many ways signifies the importance of education. But at the same time implies that the conventional way that we have been taught in school about success isn’t the only way. This phenomenon is described throughout the book especially through the character of a rich dad and the poor dad. The rich dad not even finish eighth grade but through proper money management is successful. Whilst, the poor dad was a well-educated man, respected in the community and a teacher who made a good living out of it “but struggled to make ends meet.”
In all my years of schooling, I have been chasing education. Because I was taught to think that it is the only route leading to a successful life. And although holding a degree certificate can allow me to have more options. I wish I had known from my childhood that I could be more and do more with my life than just looking forward to my graduation day.
Here are three lessons I learned from the book “Rich Dad, Poor Dad” that have had a significant impact on my whole perspective about money, wealth and success.
It is important to educate yourself about money.
More especially because if you don’t take a step and do it yourself, no one will. Not even in school. If you come from a well-off family, or you have a circle of friends, colleagues, acquaintances, etc, don’t be afraid to ask questions. If you can’t, at least observe and learn from their victories as well as their mistakes. However, if you are a shy person like me and like reading, you can do research and look for books on financial literacy and learn as much as you can. Also, you can enroll in online masterclasses and fuel yourself with all the information you need.
Learn to differentiate between assets and liabilities.
In simple terms, Robert explains an asset is something that puts money in your pockets. These are assets you either work for or don’t but which bring you money. An example of assets include Intellectual property, businesses that don’t require your presence, stocks, bonds, income-generating real estate, etc. And on the other hand, liabilities are the things that take money out of your pockets. Some examples of these are credit card debt, car loans, mortgage and car payments. The problem with most of us is that we spend a lot of money on liabilities and not enough on assets.
Anything is possible if you put your mind to it.
This statement sounds more like a cliche but it is true. The reason why most of us fail and shy away from opportunities is because of fear or self-doubt or both. In one of his last chapters, Robert emphasizes that if you want to build your wealth, you have to be ready and determined first. Be ready to awaken the “financial genius sleeping within you.”