Gain liberating financial insight.
"To wake up in the middle of the night terrified about paying the bills is a horrible way to live. To live a life dictated by the size of your paycheck is not really a life. Thinking that a job will make you secure is lying to yourself….. Don't let money run your life. " These are the words from Robert Kiyosaki's book, Rich Dad Poor Dad, a book which is a really worthwhile read. Not only does the book explain finances in a way that you can understand them, but it really motivates you to change your life to become your financial best - whilst sharing the secret of wealth creation.
Rich Dad Poor Dad uses simple box diagrams to explain balance sheet concepts, sweeping away unnecessary jargon and leading the reader into what he calls 'financial literacy'. 'Ignorance about money is what causes so much greed and fear' is Kiyosaki's belief, and his book goes a long way towards sweeping that fear away.
Contrary to popular opinion, Kiyosaki believes 'more money seldom solves someone's money problems'. He supports this position with examples of how icons of wealth became paupers through lack of financial know how. He says most people just don't realise that the answer to their money problems is not in a loan, nor is it in a better job, it's about understanding how to make whatever money you have work for you.
Rich Dad Poor Dad explains finances through story telling. The author takes you back to his boyhood days, enlivening what is normally a sterile subject, making it real and relevant. I loved the truisms that pepper the book - such as "the poor and the middle class work for money. The rich have money work for them". From a motivational point of view, these ideas can be popped on your desk or filofax, keeping right thinking top of mind on a daily basis.
The bottom line of the book's message is that, to become rich, our assets should generate income. This overturns the notion held by most that owning a home is always an asset. According to Rich Dad Poor Dad, our homes are a liability since not only do most people's home not generate income, but they need regular injections of money to sustain them. All is not lost however, as Rich Dad Poor Dad does not ask us not to leave our homes, but open ourselves to considering how to build real assets, ones that will create wealth and financial freedom so that we can sleep snug at night.
The book takes you through 7 financial lessons, all of which make absolute sense. Later chapters put likely obstacles under the spotlight, and give concrete advice on how to get started. His writing style, the use of real life examples and the simple presentation of the ideas make the book an easy read.
But most important of all, the book gives you a very powerful sense that wealth is within your reach, irrespective of your education, upbringing or status. It's content really inspires and before the book was even finished I was dreaming of ways to try out his recipe for wealth.
So this week, turn what you think is a tedious necessity - watching how you spend your money - into a bold and better future. If you know zilch about money, Rich Dad Poor Dad can change that. If you know just enough to be a danger to yourself, reading this book is even more important. Even those well versed in the subject could benefit from seeing how powerfully simple finances can sound.
© Catherine M Glennie
