We’d like to take this opportunity to wish you a very happy Father’s Day! Regardless of whether you’re currently a father or not, have you thought about the legacy you’ll be leaving for your children and family?
If anyone knows about the valuable foundations to success that his father had taught him, it’s Robert Kiyosaki. Having grown up with both his “rich dad” and poor dad”, he realised from an early age that both were successful in their careers with substantial incomes, but for some reason, one always suffered financially.
Through this, he learned that “rich dad” was rich not because of how much he made, but because of his thoughts and actions that helped him be financially successful. Here are 5 “Rich Dad” tips that can help you and your children be rich:
Making money is simple. There are many ways to make money and most of us are proficient in that, but if we do not know how to manage them, we will inevitably lose them all. Money without any financial intelligence will be soon gone.
The best thing is you don’t need to have a financial background or experience to be financially intelligent. The first thing you’d want to do is to recognise the difference between an asset and liability. In short, an asset makes you money but a liability does not.
One other way to be financially intelligent would be to focus on how to save smart by ensuring that more money is coming in than going out.
Poor people are focused on earning as much as they per hour or per month, but rich people are far more interested in how they’re building their asset columns.
By acquiring assets (things that improve your cash flow), you will be able to create and grow your own passive income. Assets include stocks, your own business, intellectual property and real estate, while liabilities include housing mortgages, credit cards and unsecured loans.
If you want to be rich, build your asset column first. The rich enjoy life after money has worked for them. The poor enjoy life now and suffer in the future.
Look around you. There’s a stark difference in how both rich and poor people choose to get paid. Poor people are content with being paid a “steady” rate of income, whether by the month or by the hour. On the other hand, rich people own their own businesses, work on commissions or choose options such as profit sharing over a higher “steady” income.
“If you work for money, you give the power to your employer. If money works for you, you keep the power and control it.”
– Robert Kiyosaki
Working for money is by far the easiest path to follow. It’s what we were taught in schools after all. Having your money work for you, however, requires calculated risk and being comfortable with constant uncertainty.
Everyone wants to succeed, but most people will never win because they’re afraid of failing, and if they’re afraid to fail, they will never try. Schools have subconsciously taught generations of people that failing is bad, and to avoid it at all costs, but humans were made to learn from their mistakes and continuously be better at what they do.
Failure is the process of success. Without failures, we will never learn, and without learning, how can we expect to achieve any level of success? If you want success, start failing.
Growing up, we were taught that the grades we got in school defined us and how successful we are. That couldn’t be further from the truth. The “smartest” in our schools may have their Masters Degrees or high paying government jobs, but are they really ahead of the pack in life?
Rich people play to win and they dare to take risks. They invest in themselves by improving upon their financial intelligence. There will always be risks in the markets and whatever business ventures come your way, but financial intelligence helps you improve your odds of success.
Focus on the technical knowledge and experience you’d gain in life, but most importantly, dare to have the courage to succeed.
The best thing we can do for ourselves, our children and even our fathers (and mothers) are to teach them the thing that schools have neglected for so long; financial intelligence. Do you want to be a “Rich Dad” or “Poor Dad” to your children? What legacy will you be leaving behind?