Repost and Updated from June 26, 2013
Well, I am back for another post, I have to up my production now !
What are Philosopher’s Notes?
First of all, let me give you a heads up on what exactly are Philosopher’s Notes…
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MindValley are a leading personal development content producer, and I really love their ideas about personal growth. Check out their page at the above link. So, to summarize, Philosopher’s Notes does to transformational books, what Cliffnotes has done for your textbook, shortened them, and summarized the insight into a 6 page PDF or a short audio MP3 read to you by Brian Johnson, an incredible author and philosopher and founder of en*theos.
I have purchased via Mindvalley a bundle of 100 transformational books about health, success, spirituality and other important issues recently and wanted to write about what I learned on my blog, as the fastest and best way to learn, is to teach, which I have been doing with a number of my facebook pages for the past year or so, visit my profile for all of them.
Why did I choose Rich Dad Poor Dad by Robert Kiyosaki to begin with ?
I have been reading personal development books for about 20+ years now, and have read many of the important ones, like Awaken the giant within, by Anthony Robbins, and The Seven habits of highly effective people from Steven Covey (RIP), and have been eyeing Rich Dad Poor Dad for quite some time now. Having recently completed Think and Grow Rich, the classic from Napoleon Hill, and having recently started the amazing How to Win Friends and Influence People, by Dale Carnegie, I have just been so busy learning about my online businesses, that I have not been able to finish a book in a little while, thus the Philosopher’s Notes.
I chose Rich Dad Poor Dad because with the economy going the way it is, and the fact that more and more people are just scraping by in life, I thought that money management would be a good blogpost that could interest a lot of people. I also love that Robert Kiyosaki promotes the quadrants of investments as the most important one for real wealth creation, unlike a job, where you need to be there to make money, investments allow you to make money in your sleep ! Which is certainly one of my short and long term goals !
So, here comes the review and some insight, enjoy !
Rich Dad Poor Dad Philosopher’s Notes review
Of course, Rich Dad Poor Dad, is all about money management and wealth creation, and takes the perspective of Robert Kiyosaki’s two father figures, one Rich, and of course, one poor:
“One dad had a habit of saying, ‘I can’t afford it.’
The other dad forbade those words to be used.
He insisted I say, ‘How can I afford it?’”
Comparing his biological, educated, government-employed father who always struggled financially (“Poor Dad”) with his best friend’s entrepreneurial, wealthy father (“Rich Dad”), Kiyosaki spins a compelling tale about how the rich think more than a little differently than the poor and the middle class. Here are some of the big ideas and insight:
Work and Money
“The poor and the middle
class work for money.
The rich have money work
These ideas sum up what people believe about money. Fear is often the prime motivator for people to remain in their jobs, sucky as they may be, as they are afraid of losing the house, their spouse, being fired. Fear is the prime motivator for people, governments, and businesses. All of these become slave to money out of fear.
This is where it is important to heed Emerson’s advice and
“Do the thing you fear and the death of fear is certain.”
What can you do ? Baby steps to get over your fear, and perhaps invest in yourself !
How can you get out of MONEY PSYCHOSIS?
“The avoidance of money is just as psychotic as being attached to money.”
Rich Dad would strongly suggest we learn to choose our thoughts consciously and carefully.
And, while you’re at that, it’s time for all of us to develop our:
“If you want to be rich, you need to be financially literate.”
~ Rich Dad
So money will not on it’s own bring you more money, but developing your knowledge and intelligence, or your financial literacy will. The basic idea is your bank account will only grow so much as you grow.
So, how do you gain this financial literacy, and become a wiser investor ?
First of all, when you invest, invest in assets, not liabilities, simple enough. Yet, most people still spend their savings on liabilities, new clothes, new car, new tv, new IPad…all liabilities.
For example, is your home an asset or a liability ? Robert says your mortgage is a liability…umm, this one surprises me also, as I always thought a house was an investment…
According to Kiyosaki:
“An asset is something that puts money in my pocket. A liability is something that takes money out of my pocket. If you want to be rich, simply spend your life buying assets. If you want to be poor or middle class, spend your life buying liabilities. It’s not knowing the difference that causes most of the financial struggle in the real world.”
So, from this we get: Mortgage equals monthly payments outbound = liability…umm…
“This pattern of treating your home as an investment and the philosophy that a pay raise means you can buy a larger home or spend more is the foundation of today’s debt-ridden society.”
So, the big question here is:
How to tell the difference between an asset and a liability?
When we spend time or money on one activity, we need to be able to look at the time and money invested in the activity PLUS what we could have done with the money if we did not invest in the activity, often according to Kyosaki, in Rich Dad Poor dad: “The greatest losses of all are those from missed opportunities.” so if your money is all tied up in your house, how can you invest in other money generating opportunities ? It truly is the classic middle class cash flow problem !
Some of the obstacles in Wealth Creation:
Rich Dad Poor Dad‘s definition of wealth:
“Wealth is a person’s ability to survive so many number of days forward… or if I stopped working today, how long could I survive?”
There are five main reasons why financially literate people may still not develop abundant asset columns:
The ending of the book is all about overcoming these obstacles, like for example fear: Kyosaki points out that our lack of confidence is often the largest block to our success, and fear is a major culprit, fear of being wrong, being ridiculed…
Kiyosaki reminds us:
“The fear of losing money is real. Everyone has it. Even the rich. But it’s not fear that is the problem. It’s how you handle the fear. It’s how you handle losing. It’s how you handle failure that makes the difference in one’s life. That goes for anything in life, not just money. The primary difference between a rich person and a poor person is how they handle that fear.”
So, what are you afraid of?
What would you do if you weren’t afraid?
Time to do that…time to conquer your fear !
For example, I have been wanting to blog for over a year now, and do so a little indirectly via Facebook, but I find that I wanted to embellished my blogs with engaging pictures, and formatting (like quotes) which you cannot really do on Facebook. Also, whatever you write via Facebook, often gets lost in the timeline after a few days, especially when you post often like I do with all of my pages, so having played around with Blogger, Blogspot, and WordPress, I finally decided to invest in an affiliate program like Empower Network that optimizes my blog posts, and allows me to earn some money referring the most powerful marketing system for blogs, and website on the planet !
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So, the main lesson here is to conquer your fear and educate yourself to create real lasting wealth !
And one of the final lessons from Rich Dad Poor Dad is:
“If you have little money and you want to be rich, you must first be ‘focused,’ not ‘balanced.’ If you look at anyone successful, at the start they were not balanced. Balanced people go nowhere. They stay in one spot. To make progress, you must first go unbalanced. Just look at how you make progress walking.”
To finish and conclude this post, remember that you have to:
GIVE, GIVE, GIVE TO RECEIVE !!
As Deepak Chopra’s reveals in The Seven Spiritual Laws of Success which will probably be my next blogpost in the coming days, where he says:
“Practicing the Law of Giving is actually very simple; if you want joy, give joy to others; if you want love, learn to give love; if you want attention and appreciation, learn to give attention and appreciation; if you want material affluence, help others to become materially affluent. In fact, the easiest way to get what you want is to help others get what they want.”
So, what do you want?
Money? Success? Love? Support? Attention? Appreciation?
How can you give more of it today?!?
Get on that.
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Have an abundant and successful day and year !