From a young age, our families and society teach us that to become wealthy, we must excel in our studies. However, very few people advise us on what exactly to study.
Financial literacy is essential for achieving financial success. Unfortunately, financial education is not included in the curriculum of schools and colleges.
This lack of education is one reason many young individuals struggle with managing their finances today and cannot attain financial stability.
Robert Kiyosaki, a successful investor, entrepreneur, and author of the book “Rich Dad Poor Dad,” believes that even after securing high-paying jobs, people often lack proper financial planning due to the absence of crucial financial lessons in their early education.
Kiyosaki draws from his personal experiences to explain the principles behind what the rich teach their children, as opposed to what the poor and middle class impart to theirs.
He stresses the importance of learning from these experiences to avoid remaining in a state of financial insecurity.
Kiyosaki highlights six essential points for achieving financial stability and wealth: 1. Rich people do not work for money 2. The significance of financial literacy 3. Pursue your ventures 4. Understanding the history of taxation 5. Rich people create wealth 6. Work to learn rather than solely for monetary gain.
Working for money is like being in a rat race – you must keep running for the rest of your life. Life revolves around waking up, working, paying bills, and having no time for anyone else. Instead of working for money, work to learn.
Otherwise, there will likely be boredom on the job. Many believe that working hard will lead to promotions and a better life, but it often just results in a monthly salary. Stop working for money and think about how to make money work for you.
Start thinking about how money can work for you in your free time while you learn to work. Financial literacy is essential. It acts as our balance sheet, showing how much income is coming in and how much is going out.
This balance sheet includes responsibilities such as paying credit card bills, car EMIs, home loans, and school fees. How individuals spend what they earn differs, whether they are poor, middle class, or rich.
The rich divert their money into assets, investments, and real estate, learning to work cash with money. Low-income people remain poor mainly because their expenses equal their income, and they delay repayment of loans and EMIs without acquiring assets.
Do your work: Success is achieved only when you work for yourself, whether it’s for one hour or ten hours a day. For example, McDonald’s is essentially in the real estate business, buying land for its franchises and leasing it out to profit from sales, ultimately increasing its income through rent.
History of Taxation: Governments used to collect taxes to fund wars. The poor and middle class continue to pay taxes, but the rich often find exemptions through various income tax laws by investing in stocks and assets rather than using cash.
To become rich, one must thoroughly understand accounting, investments, supply and demand markets, and government laws. Generating Money: You don’t need a considerable investment to start a business.
Robert followed a real-life example of buying a house at a lower price and selling it for a profit without immediately paying the money.
Creating opportunities yourself is crucial for financial intelligence, as it makes more money-making methods.
Money is a valuable tool that must be earned, and it’s essential to surround yourself with people more intelligent than you to increase your thinking ability. Start today by creating multiple streams of income instead of just one.