AWAKEN YOUR FINANCIAL GENIUS. Rich Dad Poor Dad Summary
Turning dreams to reality require financial freedom. And wealth can be achieved through financial intelligence. Robert Kiyosaki shared his principles on how to Awaken your Financial Genius. The book Rich Dad Poor Dad contains the principles he learned, leading him to financial freedom.
One day, Robert asked, "Dad, can you tell me how to get rich?". His father had a Ph D. and completed multiple universities with excellent degrees. Unfortunately, his dad didn't know the right answer because he wasn’t rich himself, so he responded. "Well, use your head son." "Stay in school, get good grades so you could find a safe and secure job”. His real dad is what he referred to as the poor dad. He wasn't really poor since he makes lots of money, but in the end, this man's financial life takes a turn for the worse.
Now, little Robert has a friend and his friend's father would be referred to as the rich dad. Who started mentoring Robert and his friend. At that point in time, rich dad wasn't really rich yet. His income was the as same level as Robert’s real dad but soon became to be one of the wealthiest men in Hawaii. So then, what did rich dad teach Robert? Rich dad poured a strong financial foundation into these kids’ minds of many important principles.
The PRINCIPLES were:
1st. the rich don't work for money
“Most of the time life does not talk to you it just sort of pushes you around and each push is life saying wake up” to become wealthy you must know that one’s life is controlled by two emotions.
Fear and Greed. Fear of not having money. Instead of confronting the fear they react emotionally,
instead of using their heads. Greed, of the joy that they think the money could buy. But the joy that the money brings is often short-lived and soon needs more money for more joy, more pleasure, more comfort, and more security.
2nd. financial literacy
“It's not about how much money you make it's about how much money you keep”.Understand the difference between a liability and an asset. Remember that assets put money into your pocket and liabilities take money out of it.
3rd. mind your own business.
“the rich focus on their assets while everyone else focuses on their income statements. Build and maintain a strong group of assets
4th. the power of corporations.
Use corporations to take advantage of legal tax loopholes and protect your money. “if you own a business and make a decent amount of money, you need to consider setting up a corporation”
Train your financial IQ: to increase your financial IQ you must increase your knowledge in the areas of: Accounting, investing, understanding markets and the law of the land. A corporation is the biggest legal tax loopholes used by the rich to make and keep more of their money. Your financial IQ is a synergy of all of these skills and talents combined.
5th. seize opportunities to make money.
“In the real world it is not the smart who get ahead, but the bold”.
6th. work to learn, not for money.
Job or J O B is an acronym for just over broke.
Lastly. overcoming obstacles.
Obstacles include fear, cynicism (or self-doubt), laziness, bad habits, and arrogance. Robert Kiyosaki said, “Every time I've been arrogant I've lost money because I believe that what I didn't know wasn't important”.
The book motivates us to increase our financial intelligence. If we want to gain financial freedom, then we need to follow the principles. And turn our dreams to reality.
Steps to Awaken your Financial Genius
1. Find a reason greater than reality. (Power of spirit)
Have a strong reason to pursue financial independence.
2. make daily choices, plan! (Power of focus )
Choose your daily activities wisely to invest in your mind and goals. Plan your work, then work your plan.
3. choose your circle carefully. (Power of association)
Be careful who you choose to associate with, be mutual. If you can’t benefit from them, why should they benefit from you?
4. master a formula then quickly move on to the next. (Power of quick learning)
Financial success is closely linked to how quickly you can learn new formulas for making money. You need to learn a little bit about everything and learn fast.
5. always pay yourself first to enhance your self-discipline. (Power of self-discipline)
If you can't control yourself, don't try to get rich.
6. pay your broker as well. (Power of good advice)
It's hard to measure the power of good advice.
7. be an Indian giver. (Power of getting something for nothing)
Indian giver is an American expression, used to describe a person who gives a "gift" and later wants it back, or who expects something of equivalent worth in return for the item
8. use assets to buy luxuries. (Power of choice)
You should always buy luxuries with income from assets and not on loans.
9. Choose heroes. (Power of myth)
By having heroes it becomes much easier to tap into your raw genius, follow and learn from an influencer or a public figure in social media.
10. give and you shall receive. (Power of giving)
When you need something, learn to give what you want first and it will come back to you in buckets.
“Financial freedom is a mental, emotional and educational process”. Robert Kiyosaki”
One day, Robert asked, "Dad, can you tell me how to get rich?". His father had a Ph D. and completed multiple universities with excellent degrees. Unfortunately, his dad didn't know the right answer because he wasn’t rich himself, so he responded. "Well, use your head son." "Stay in school, get good grades so you could find a safe and secure job”. His real dad is what he referred to as the poor dad. He wasn't really poor since he makes lots of money, but in the end, this man's financial life takes a turn for the worse.
Now, little Robert has a friend and his friend's father would be referred to as the rich dad. Who started mentoring Robert and his friend. At that point in time, rich dad wasn't really rich yet. His income was the as same level as Robert’s real dad but soon became to be one of the wealthiest men in Hawaii. So then, what did rich dad teach Robert? Rich dad poured a strong financial foundation into these kids’ minds of many important principles.
The PRINCIPLES were:
1st. the rich don't work for money
“Most of the time life does not talk to you it just sort of pushes you around and each push is life saying wake up” to become wealthy you must know that one’s life is controlled by two emotions.
Fear and Greed. Fear of not having money. Instead of confronting the fear they react emotionally,
instead of using their heads. Greed, of the joy that they think the money could buy. But the joy that the money brings is often short-lived and soon needs more money for more joy, more pleasure, more comfort, and more security.
2nd. financial literacy
“It's not about how much money you make it's about how much money you keep”.Understand the difference between a liability and an asset. Remember that assets put money into your pocket and liabilities take money out of it.
3rd. mind your own business.
“the rich focus on their assets while everyone else focuses on their income statements. Build and maintain a strong group of assets
4th. the power of corporations.
Use corporations to take advantage of legal tax loopholes and protect your money. “if you own a business and make a decent amount of money, you need to consider setting up a corporation”
Train your financial IQ: to increase your financial IQ you must increase your knowledge in the areas of: Accounting, investing, understanding markets and the law of the land. A corporation is the biggest legal tax loopholes used by the rich to make and keep more of their money. Your financial IQ is a synergy of all of these skills and talents combined.
5th. seize opportunities to make money.
“In the real world it is not the smart who get ahead, but the bold”.
6th. work to learn, not for money.
Job or J O B is an acronym for just over broke.
Lastly. overcoming obstacles.
Obstacles include fear, cynicism (or self-doubt), laziness, bad habits, and arrogance. Robert Kiyosaki said, “Every time I've been arrogant I've lost money because I believe that what I didn't know wasn't important”.
The book motivates us to increase our financial intelligence. If we want to gain financial freedom, then we need to follow the principles. And turn our dreams to reality.
Steps to Awaken your Financial Genius
1. Find a reason greater than reality. (Power of spirit)
Have a strong reason to pursue financial independence.
2. make daily choices, plan! (Power of focus )
Choose your daily activities wisely to invest in your mind and goals. Plan your work, then work your plan.
3. choose your circle carefully. (Power of association)
Be careful who you choose to associate with, be mutual. If you can’t benefit from them, why should they benefit from you?
4. master a formula then quickly move on to the next. (Power of quick learning)
Financial success is closely linked to how quickly you can learn new formulas for making money. You need to learn a little bit about everything and learn fast.
5. always pay yourself first to enhance your self-discipline. (Power of self-discipline)
If you can't control yourself, don't try to get rich.
6. pay your broker as well. (Power of good advice)
It's hard to measure the power of good advice.
7. be an Indian giver. (Power of getting something for nothing)
Indian giver is an American expression, used to describe a person who gives a "gift" and later wants it back, or who expects something of equivalent worth in return for the item
8. use assets to buy luxuries. (Power of choice)
You should always buy luxuries with income from assets and not on loans.
9. Choose heroes. (Power of myth)
By having heroes it becomes much easier to tap into your raw genius, follow and learn from an influencer or a public figure in social media.
10. give and you shall receive. (Power of giving)
When you need something, learn to give what you want first and it will come back to you in buckets.
“Financial freedom is a mental, emotional and educational process”. Robert Kiyosaki”
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