Over come your fears if you want to make it rich . Review on Rich Dad, Poor Dad - Robert T. Kiyosaki

Introduction

When a cricketer comes closer to scoring half a century, he slows down. I was looking for a topic for my 50th review for a long time but could not get the right inspiration to write on anything. I recently read a book “Rich Dad Poor Dad” by Robert T Kiyosaki and my mind was made up. What better way to complete my GOLDEN JUBILEE of association with MouthShut than writing a review on this fantastic book.

I have been so inspired by this book that it has changed my thinking completely. It has taught me, who has slogged all my life that it is more important to work smarter rather than work harder.

Two Roads……

Where do I begin? Kiyosaki tells us what the rich teach their kids about money that the poor and middle class do not. Kiyosaki quotes from the poem “The Road Not Taken” by Robert Frost

“ …I shall be telling this with a sigh

Somewhere ages and ages hence;

Two roads diverged in a wood, and –

I took the one less traveled by,

And that made all the difference.”

Fear and Desire

Opportunities come and go, but if you can’t make up your mind decisively, then you’ll never learn to make money. Being able to know when to make quick decisions is an important skill which has to be learnt. We can only learn this when we can get the better of two emotions (which he describes and ‘energy in motion’). Fear and desire are the two emotions which hold us back. “Its fear that keeps people working at a job. The fear of not paying their bills. The fear of being fired. The fear of not having enough money. The fear of starting over. Unchecked doubt and fear creates a cynic. Cynics criticize and winners analyse. Desire for material possessions increases the fear. The desire to buy a car, construct a house, have the latest gadgets at home, to go on a holiday. Everything costs money. You work harder to fulfill all the desires. You borrow money for these material possessions (credit card) then work harder to earn more to repay. You all into the debt trap and continue working hard all your life.

Don’t Work for Money….

By far the most important thing which Kiyosaki tells is Don’t work for money, let money work for you. If one can understand the importance of this statement, he is well on the path of changing his life for the better. He says “Keep using your brain, work for free, and soon your mind will show you ways of making money far beyond what you are paid in the job.” When you work for money, your brain stops working. You work like an automaton in a never ending cycle. Once a person stops searching for information and knowledge of one’s self, ignorance sets in. I hear many people say “I am not interested in money.” or “I don’t care for money.” They are thinking with their emotions. You must use your emotions to think, rather than think with your emotions.

Assets and Liabilities

One myth which Kiyosaki breaks is the concept of thinking of a house as an asset. He says that a house is a liability and not an asset. If we can clearly understand what assets and liabilities are, we are well on the path to becoming rich. If accountants had understood it well, they would probably be rich men rather than just accountants. He says “Rich people acquire assets. The poor and middle class acquire liabilities, but they think they are assets.” He goes on to explain how the poor and middle class get lulled into buying and filling their homes with stuff which are actually not giving you any returns. Those possessions ultimately find their way to the garage, store or attic and gather dust and are not worth their weight. They are not assets but just possessions. An asset must give you returns to be of value. Getting assets is “.. like planting a tree. You water it for years and then one day it doesn’t need you anymore. It’s roots have gone deep enough. Then the tree provides shade for your enjoyment.

What is stopping us…

Kiyosaki says that one thing that holds all of us back is some degree of self-doubt It’s not the smart that get ahead but the bold. The ability to take the first step in the path less traveled. The main reason most people are not rich is because they are terrified of losing. In school you are taught not to make mistakes and not to learn from mistakes. He says that there is not a single rich man who has not lost money, but there are plenty of poor people who have never lost a penny. Unless you are prepared to lose, you can never hope to win. People who avoid failure also avoid success. “Find an opportunity that everyone else has missed. You see with your mind what others miss with their eyes.” One has to learn to manage risk rather than avoid it. “Failure inspires winners and failure defeats losers.”

Just Over Broke

JOB is an acronym for ‘Just Over Broke’ he says. Workers work hard enough not to be fired, and owners pay just enough so that workers won’t quit. That is why the world is full of talented poor people. An intelligent person hires people who are more intelligent than they are. They work hard at a job earning millions for their companies yet they never make it rich.

Give and you shall receive

Kiyosaki says that the most important law of money is ‘Give and you shall receive’. Whenever you feel ‘short’ and in ‘need’ of something give what you want first and it will come back in buckets. That is true for money, a smile, love, friendship.

Improve your financial intelligence

Most of us study to get into a good job and there after work for someone else. We use all our intelligence in working for someone else. We do not increase our financial intelligence and thus ensure that we improve our financial status. About 90% of the population buys TV sets and only about 10% buys books on business or tapes on investments. The only real asset you have is your mind. You become what you study.

Study and then teach. The best way to learn is to teach. When you teach someone, you learn a lot, as you exercise your mind while teaching.

Conclusion

I have tried to give a gist of the major concepts which Kiyosaki has enunciated in his book, so as to arouse your curiosity, but the book has much more to offer. The book has been on the best seller list of the New York Times and The Wall Street Journal. It has had a major impact on my thinking and my only regret is that had Kiyosaki written theis book some 25-30 years ago, I probably would not have been slogging for this long. Anyway, better late than never.