Posts Tagged ‘Rich Dad Poor Dad’

“The world is filled with talented poor people. All too often, they’re poor or struggle financially or earn less than they are capable of, not because of what they know but because of what they do not know.”

Robert Kiyosaki, “Rich Dad, Poor Dad”

I have had a copy of “Rich Dad, Poor Dad” for a long time, read it when I bought it, and haven’t picked it up to read again until this past week.  As I read through this book at this junction in my life’s journey, so much of it is making more sense now than it did in my first reading.

When I came across the above statements in the book, the reality of why so many people trudge along never finding financial success or freedom hit me like a ton of bricks. When we shut down the learning process, and we close the doors to learning something new, the opportunities to grow and expand our wealth are reduced greatly.

From my viewpoint, there are two things that will cause someone to change course from where they are to something better: desire or pain.

Desire is the strong emotional component that can drive someone forward, pushing through obstacles, and will only stop when it reaches its destination. Wait. Let me rephrase that. A BURNING DESIRE will push people to see a goal reached. Now, I have the desire to own a Nissan 370Z. However, that desire is not a burning desire so I don’t put much effort into attaining that goal. When it comes to my life goal, to inspire one million people to Dream BIG and LIVE their dream, that is my burning desire.

Pain is also a strong motivator to change. For some people, the pain comes too late to make the necessary course changes to LIVE a fuller life. For others, the pain of being where they are in life becomes so unbearable, they do what it takes to change the course of their life. The memory of that pain motivates them to push forward and crush the obstacles that stand in their way.

Unfortunately, the majority of people endure the pain, never seek to flame the desire within themselves, and don’t seek out what they need to learn to make that one change that will push them toward a more rewarding financial journey.

When you take a look at where you are at today, are you satisfied with your place in life? Does your financial balance sheet give you a sense of security for your future? If you answered yes to both of those questions, congratulations. If you could only say yes to one of those or no to both, what is keeping you from reaching your goals? Make a conscious decision to learn what it will take to make your goals happen, and start making the changes necessary.

Last night, I had the opportunity to participate in  a teleconference call with Steve Harrison. The purpose of the call, although the content centered around the title, “7 Key Differences Between Rich Authors and Poor Authors,” was all about marketing. It reminded me that I am not in the professional speaking business; I am in the marketing of professional speaking services.

Robert Kiyosaki wrote the book Rich Dad, Poor Dad as a marketing tool for his board games and seminars. The price of the book I have is $15.95 and the two pages in the back of the book promoting the games to further learn the concepts in the book started at $195 for the Cashflow 101 game, $145 for Cashflow 202 game, and $79 for Cashflow for Kids game (prices are what was listed in the book from 1998 edition). Which products or services do you think he makes the most money on?

Steve Harrison mentioned that best-selling author Robert Allen referred to his books as his business card. Authors who understand this concept often include in their books offers for additional free information by going to a particular website. They are gathering emails and addresses for the purposes of marketing more of their products and services.

The call gave me some great insight into how I can structure my business and how I can use my book as a means to offer my services to more people. In that brief call, I learned that if I learn how to market properly, my goal of inspiring one million people to Dream BIG and LIVE Their Dreams can become a reality.

As you finish up the week, reflect on how much of your time and energy this past week went into marketing your products or services. What was something that produced results? What is one thing you can do this next week to strengthen your marketing?

If you have ever flown on a commercial airplane, one of the airline attendants will go over the safety instructions prior to the flight. In the event that the oxygen masks should drop down, you are instructed to place your mask on yourself first prior to helping someone else with their mask. The reason is simple; you can’t help anyone else if you are passed out due to lack of oxygen. You must put your mask on first prior to helping someone else. The same is true in your financial life; you must pay yourself first.

Financially successful people make it a habit to take a portion of their income and save it before any other expenses. They take responsibility for their own financial future, not hoping the government or someone else will take care of their financial needs.

There is a mathematical reason why it is important to begin this habit as early as possible. It is called compound interest. The earlier you start the process, the higher the reward. An example many financial advisors use goes something like this:

Sally Earlybird begins investing $1,200 (only $100/month) a year at age 25, earning 10% a year on her investment. When she reaches 35 years of age, she stops contributing. Her friend, Fred Waittillater, decides he needs to begin investing and he starts at age 35, investing $1,200 a year earning 10%. He continues to do so until retirement at age 65. Who do you think has the most money at retirement, considering Sally only put in $12,000 and Fred put in $36,000? If you answered”Sally,” you understand the power of compound interest. Sally’s total amount would $367,090.06, while Fred’s would be $217,132.11.

The key is to start early and maintain the discipline of paying yourself first without touching that money. This is a process, not a get-rich-quick idea. Consistent and steady wins the race.

Jack delves into several other areas in the book that are worth reading through. I am going to add a couple of things here from my experience as a financial advisor (I am not currently a financial advisor, and I would suggest you find one who comes highly recommended from multiple sources).

First, remember that there is a difference between saving and investing. Oftentimes it is said that you are “saving” for retirement through your IRA or 401(k), when you are really “investing” your money in those vehicles. There are some options out there that provide less risk and decent rates of return without market volatility. Know what your risk tolerance is and where you are investing your money.

Robert Kiyosaki, coauthor of “Rich Dad, Poor Dad,” shares an important rule when it comes to your financial literacy.

Rule One. You must know the difference between an asset and a liability, and buy assets. If you want to be rich, this is all you need to know…Most people struggle financially because they do not know the difference between an asset and a liability.”

As you begin to pay yourself first, be sure you know the difference and start buying assets, things that will generate revenue. By developing the habit of taking a set percentage off the top of all your income, you will create a pool of money to buy income-generating assets. It starts with a consistent habit of paying yourself first.


(Our daily journey of the last 64 days of 2011 is centered on the principles found in Jack Canfield’s book, “The Success Principles: How to Get from Where You Are to Where You Want to Be.” In his book, he encourages his readers to begin teaching others these principles. I would highly recommend that you buy a copy of the book and join us on a journey to a better you.)