RICH DAD POOR DAD FOR TEENS- THE SECRETS ABOUT MONEY-THAT YOU DON'T LEARN IN SCHOOL", by Robert Kiyosaki

This chapter dived into the mindset of an individual and how becoming knowledgeable on the way the “game” of money is played can significantly place someone ahead financially.

Money creation and accumulation can be viewed as a game, for example, chess. In order to play chess, you need to know how the pawns, bishops, rooks, king, queen, to name a few, move along the board to get the game going. However, if you aren’t educated on even the basics of how chess works how will you be able to play much less win? The same is with money.

I read it in another of Robert’s books called “Increasing Your Financial IQ- Becoming Smarter With Your Money” when he explained in detail that the rules of money changed in 1971, when the president at the time, Richard Nixon, took the US economy off the “gold standard” and started using “funny money” to trade for commodities. Before, you could go to the bank and trade paper for gold so that the paper was “backed” by something of value. Now, there is nothing holding the value of today’s dollars. When people talk about “inflation”, it isn’t the value of goods going up, it’s actually the value of the dollar going down. Nothing changed about the good being sold…. what changed was the decrease in value of the dollar. Therefore, you need more dollars to pay for the same item. Pause and think about it.

Now, when our parents say that we need to work hard, study and get a good job to secure a good salary that’s the old rules of money. Majority of individuals today went to college and university and still can’t afford to live the life they always desired.

What I need to do, and whoever reads this, is to play by the new rules of money:

• Make more money

• Protect your money

• Budget your money

• Leverage your money

• Increase you financial information

The book I’m currently reading didn’t talk about the 5 rules above but the other book by Robert I mentioned earlier did. Having different types of income streams such as active, portfolio and passive income is also a big one. You can’t be at more than one place at once so there needs to be money being made even when you're not there…multiple income streams.

Some lines that stood out to me:

• “One of the most important things I learned when I was a kid was that when you play a game, you’ve got to know the rules, because rules define how to succeed at the game.”

• “…Rat Race- where you work to earn, work harder to earn more, and eventually burn out.”

• “Parents of my friends seemed so confident about the future. They actually thought differently about money, I realized.”

• “My dad said, “Money is the root of all evil.” Mike’s dad said, “The lack of money is the root of all evil.”

• “What you think is what you get!”

• “Be totally self-reliant financially.”

• “Write a strong business and financial plan to create a good company.”

• “The rich often own the companies for which others work. The rich own stock in the companies while others get paychecks.”

• “But let’s say you’re thinking like a rich person. Your work is to discover ways to make extra money without working longer hours, ways to start your own business. Your work is to discover new possibilities.”

• “What I learned from my first moneymaking venture was that it was possible to “think rich,” and that it was possible to make a choice to be a have or have-not.”

• “I was beginning to see that being rich had something to do with creating opportunities, not just accepting that you lived on one side of the street or another.”

• “Because one of the best ways to become financially free is to become a successful business owner, most of whom surround themselves with strong team members.”

• “Working with someone can be very rewarding, emotionally and financially. It allows you to bounce ideas off another person.”

I’ll catch you next time.