Role of Schools in making you poor
The main reason people struggle financially is because they have spent years in school but learned nothing about money.
Rokert Kiyosaki
All this effort right from childhood until adulthood only to make money and become rich in the end. We go to schools learn all kind of things and give countless exams. Give up dreams and face a lot of struggle only to realize that we are doing all this to earn money but we are never taught about money in school. They basically train us to study hard to get a paying job and then work hard on that job so that the payment never stops. This is the mentality of the poor and the middle class peoples.
The result is that people learn to work for money…. but never learn to have money work for them.
Rokert Kiyosaki
You see if the end goal is the money itself then you don’t necessarily need to have a college degree or put in a lot of hard work. Just understand how the money works and then use that knowledge to make money SIMPLE!!!!
This book “Rich dad poor dad” is one of the most popular and simplest book for educating yourself about money. This book is an eye opener regarding a lot of concepts about making money, paying less taxes and building assets. Here I have mentioned few of the topics that really worked my brain and got me to think.
Work to learn – Don’t work for money
Job is an acronym for “Just over broke”
This is one place where everyone gets wrong about money. We think we earn money based on the work that we do and we will earn money based on the amount of work that we do. NO! work only to acquire skills and work only to increase the knowledge value of yourself. After that Earn money based on what you know , not on the basis of what you do.
Invest
It is not gambling if you know what you’re doing. It is if you’re just throwing a money into a deal and praying
Start Investing!! Every few Dollars that you have extra right now, Invest it. Know the power of compounding and increase your wealth over time. Here Robert does not believe in Stock Market Investing and is talking about investing in Real Estate. Buy properties today so that the sell value of tomorrow will give better returns.
We try to avoid investing because we think that it is gambling and no body can be sure about the value in future. But with proper learning and research we can predict the future value of any asset Intelligently.
Build/Acquire Asset
STOP buying liabilities
Buying a phone, car, house for your luxury is a liability. All these are depreciating assets and the value of these things decrease by a lot over time. It is a different thing we are acquiring these resource for acquiring more wealth. E.g. Buy a house and getting a monthly rental income is a form of asset. Buying a good laptop and mobile for your business and creative work to earn is a type of asset.
So Understand what are assets and what are liabilities and make sure your assets outperform your liabilities.
Choose Teachers carefully
Find masters of your field and make them your mentor, your teacher this step is very crucial for progress. A good teacher can make you and a bad one can break you. From a good teacher you will be able to shave off a lot of years in your life that would go in trial and error. Learn from the experience of your teachers.
Pay yourself first
Poor people are poor because they live only on Salary. Before you receive your salary the government takes out its taxes and your employer makes few other deductions and then what is left you get. But rich doesn’t do that the rich earns money then spends it on himself and then pays taxes on whatever is left.
Buying a house is a liability
Many of us consider a house as an asset and then they go take huge loans to buy this house and then work their whole life to pay for this house. So Robert sees buying a house as a liability. If taken huge loans to buy a house and then you stay in that house then you are not earning anything because you are living in it along with constant pressure of earning EMI to pay to banks.
Hence it restricts your movement and also the opportunity to do something else.
