Once I read Robert Kiyosaki’s book Rich Dad, Poor Dad I thought about assets and liabilities much differently.
There was his story about his “two fathers”, his real father who was employed for the school system in Hawaii but was poor and his other father (real or imagined) who was into building assets like real estate holdings that paid residual. One linear, work for an hour get paid for an hour, the other is leveraged income, money or assets working for you!
Whatever Roberts investments or ideas, one thing is certain, assets are better than liabilities and owning your own business can allow you to invest further into assets that can bring a person residual money equal to or even much greater than simple employment.
I will add here that working any good job like the school district as above, to me, is highly noble and great in society. However, if you can work your way into building your asset column while doing that, you may replace your income and become independent at some point.
The story is about Robert who served honorably as Marine Corps helicopter gunship pilot in Vietnam. After serving he worked for Xerox as a salesperson, not sure why he left, probably to start his own business.
After a business he tried went bankrupt and during an earlier relationship he found himself homeless, living in a car. My question here would be, with two dads, seems like there would be a spare couch somewhere! Anyway, this homeless period lasted several months and I’m sure if he had a different place to live he would have.
He tried a few business ventures, Velcro wallets that went bankrupt and t-shirt business he sold. However, it was his book Rich Dad, Poor Dad which gained international acclaim and the money that goes with it. Now, with 15 books and 26 million sold, he has ventures such as real estate, mining, commodities, oil wells, and motivational speaking.
Note: many who start from near zero or below have foreclosure/s, bankruptcy/s, wiped out credit, maybe even lose a relationship or two, for them it was a process of trial, error, adjusting, trying again with strong determination, usually a winning attitude.
I took some serious notes reading his Rich Dad, Poor Dad book, here’s a few that struck me…
“The reason positive thinking alone does not work is because most people went to school and never learned how money works, so they spend their lives working for money.” Which is I also did for 20+ working years.
“If you realize that you’re the problem, then you can change yourself, learn something and grow wiser. Most people want everyone else in the world to change but themselves. Let me tell you, it’s easier to change yourself than everyone else.” It always comes down to working on yourself! In this case, not just positive thinking, which is foundational, but he’s talking a more specialized knowledge also.
“Few realize that it’s their lack of financial education that is the problem.” Bottom line is his book talks about finding ways for money to work for you not the other way around. It’s full of nuggets of wisdom, but for the actual financial education, you’ll need to go find that and there are many good books and financial strategists out there.
Robert did work his way from poverty and being homeless to extreme wealth by most standards. That makes this a great story to me. When someone has faced wondering where they will sleep, how they will get something to eat, going to recycle, finding loose change to survive, or having a place to call home, a home that they maybe losing or lost, no car, no partner in life. Then they pull themselves up by their own bootstraps and make things happen and become wealthy… it makes a story that I really enjoy hearing. Till next time, God Bless,