Financial IQ: Review of Rich Dad Poor Dad - Part 4 of 4

Lesson 6: Work to Learn –Don’t Work for Money
The Author’s Odyssey
After college graduation Robert Kiyosaki joined the Marine Corps. He learned to fly for the love of it. He also learned to lead troops, an important part of management training. His next move was to join Xerox where he learned to overcome his fear of rejection. The thought of knocking on doors and selling copiers terrified him. Soon he was among the top 5 salespeople at the company. For a couple of years he was No.1. Having achieved his objective – overcoming
his shyness and fear—he quit and began minding his own business. Learn skills like PR, marketing, and advertising. Take a second job if it means learning more.

A Difference in Education
Schools train professionals. Professionals become so specialized they cannot apply themselves in other fields and need to form unions to protect their jobs. Remember you can have a profession, say, learn to be a pilot if you want to learn how to fly, but at the same time mind your own business. The rich “groom” the next generation by training the heir in all aspects of running the business. They move him from department to department so he learns how
each one relates to the other. Specialization is not the key here, but picking up important lessons from each area and seeing the business as a whole.

Rich Dad groomed Kiyosaki and Mike in the same manner. Mike would later take over Rich Dad’s empire, which included restaurants, convenience stores, and a construction company. Kiyosaki created his own empire with real estate, new products and educational materials.
Five Obstacles to Financial Independence

• Fear. Don’t play it safe and cling to what you think is secure. If you don’t go for it and think big you won’t be able to earn big.
• Cynicism. Don’t listen to advice of others who are not doing what you intend to do. Listen to your self and those who are doing what you aim to do.
• Laziness. Greed is good and fights laziness. Think about the freedom and money you’ll have and you will put in those extra work hours. Change your thinking. Instead of saying “I can’t afford it.” Ask yourself “How can I afford it?” Challenge your mind to create solutions.
• Bad Habits. Spending habits should turn into saving and investing habits.
• Arrogance. Don’t think you know everything there is to know about money.
• Listen to others. Enroll in useful seminars.

Ten Steps to Awaken Your Financial Genius:

• Find a reason greater than reality, a big dream. Think of the freedom, the lifestyle wherein you control your own time. Think of what you don’t want, i.e. “I don’t like being an employee”.
• Use the power of choice, daily. You can choose to watch MTV, or watch CNBC. It’s how you choose to use your time and energy everyday that brings financial success in the long run.
• Choose your friends carefully. It pays to have friends who are focused and achieving their goals. Surround yourself with friends you can learn from.
• Master a formula. Learn a new one, and learn fast.
• Pay yourself first. Practice self-discipline by keeping expenses low.
• Tenants can pay for your expenses if you rent out apartments or ministorage, for instance. Savings are used for investing and creating more money, not for paying bills.
• Pay your broker well. Attorneys, accountants, stockbrokers, and real estate brokers will have more incentive to work harder for you. If they make more money, it means you make more money as well. 3-7% is a good incentive.
• Be an Indian giver. It’s the concept behind ROI. (Return on investment)
• Invest and then take the initial money out after a time when the investment has earned for you.
• Buy luxuries last. Let the income from your growing assets afford you the new car. Wait for your asset base to grow first. Middle class people buy luxuries first, on credit.
• Find yourself a hero. When you play golf you can imagine you are Tiger Woods. When you do business, you can ask yourself, “What would
• George Soros have done if he was in my place right now?”
• Teach and you shall receive. As in money, love, or friendship. If you give without expecting anything in return, you receive more.

To-Do List

• Stop what you’re doing. Take a step back to assess your situation. Stop doing what is not working and look for a new option.
• Look for new ideas.
• Take action. Find someone who has done what you want to do. Take them to lunch. Ask for tips.
• Take classes and buy tapes.
• Make lots of offers. Finding a good business deal is a lot like dating. You must go to the market and talk to a lot of people, make offers, counteroffers, negotiate, accept and reject. Many single people sit at home waiting for the phone to ring instead of going out and hitting the dating scene.
• Take a walk through your neighborhood and look for bargain real estate deals.
• Buy the pie and cut it into pieces. People buy only what they can afford so they think small. Think big. This goes for land and other investments.
• Learn from history. Colonel Sanders lost everything in his 60’s and started from scratch with a fried chicken recipe. Bill Gates became rich before he was 30.

ACTION ALWAYS BEATS INACTION.
"IF YOU'RE DOING SOMETHING YOU CARE DEEPLY ABOUT AND IF YOU BELIEVE IN IT, IT'S IMPOSSIBLE TO IMAGINE NOT TRYING TO MAKE IT GREAT."