Do you have trouble with financing? Is it because you’re not earning enough, you have too many obligations and expenses, or there simply isn’t enough money?
These are questions you’d ask yourself at even back when you were once a student in school. You might have graduated with a degree, secured a job and a livelihood, and discover that by the end of the day, you just barely have a penny left in your pocket. Why has nothing changed?
Because you never learned the lessons for financial success.
This article will tell you things you never learned in school. These are lessons that even the most successful businessmen spent years to learn and understand. More importantly, this article will surely help you secure financial success.
Great opportunities are not seen with your eyes. They are seen with your mind– Robert T. Kiyosaki
Most of these lessons come from the best seller book “Rich Dad Poor Dad” by Robert Kiyosaki. With over 80 million dollars of net worth, this man creates an easy-to-understand summary of the financial industry, managing your money, and the dos and don’ts on the journey of getting rich.
So here are the six important Lessons Proven to Achieve Financial Success:
#1 The Rich don’t work for money
Money is quantifiable. For a lot of us, it serves as a measure of value, like the common question, “can I afford that?” But according to Kiyosaki, you’re not supposed to see it as such. Why not try thinking, “How can I afford that” instead? Think of its value beyond a given price.
Do not work for money. The number on your paycheck matters little when you have many expenses too. Remove the idea “I can work to have enough” because you are letting two emotions drive you. First is the fear that there will never be enough money and the next emotion of Greed with the need to have more money. It turns to an endless cycle.
The rich, on the other hand, see money as an opportunity, and to use it comes with risks and profits. Regardless of its quantity, money is not something you hold on to, but something to let go. Think harder and smarter on how to use cash, not just working to earn for it.
#2 Financial Literacy
Just because we’ve established that idle cash is a wrong decision does not mean we can easily succeed in using our money. We must learn a little bit more about the language of financing. Learning the language gives you a perspective and security necessary in the future.
Poor decisions would lead to nothing. You need to learn for your money to survive continuously.
Start by learning where your cash goes. Why do you have so little? How can you get more out of it?
Learn things such as profit, risks, assets, and liabilities. Regardless of your financial income or the size of your investment, it’s not about how much money you can make, but how much you can keep.
#3 Mind your own business
To mind your own business means to both stop caring about the people around you and focus on what you already have.
Comparing your money and business to another can be a bane to your success. Simply put, the basis of comparison is unnecessary. This first lesson already says it’s not about the money, so don’t look out for the amount of income somebody else makes.
Strive to manage your own business instead. Build and nurture it beyond what you already know. There is always room for improvement. Design a business that succeeds even without your hand-on work. Be creative in thinking of solutions. The analogy Kiyosaki used as an example is how McDonald’s may not have the best burgers, but they own the most valuable intersections in America. Work in the same way that explores your strengths and earn money off that.
#4 The History of Taxes and the Power of Corporations
What money you can earn on your own, might still end up getting used in taxes. The bigger you earn, the bigger your tax gets, and corporations operate in the same manner. Kiyosaki says a big difference between the rich and the poor is the knowledge they have on this topic. This is why the rich use corporations and the poor get used by it.
There are three ways you work under corporations. First is the earned income, where payment comes for the services you’ve given, but almost 60% of the money you earn is for tax. Second is the portfolio income, where you gather resources or services and sell them off at a higher price. It gives you a profit, but about 20% will be returned as tax because it counts as business transactions. Lastly is the passive income that Kiyosaki emphasizes to be the ultimate answer to financial success. Passive income is money you earn without working, like stocks or bonds, and incurs zero taxes. The more knowledge you have on passive income, the bigger your financial success gets.
#5 The Rich Invent Money
Passive income comes from assets, and Kiyosaki defines assets as something that puts money in your pockets. While assets are easy to understand, gathering it is a challenge.
Kiyosaki says it is not the smart and educated that get ahead in life but the adventurous and bold. With the previous four lessons, you can see that it is not a doctorate or the money in your pockets that make you successful, but the mindset you have is ready to take up a different approach. Toss away the fear. Look hard for the opportunity you have every day. Learn to invent money instead of working for it.
As Kiyosaki says, “The single most powerful asset we all have is our mind. If it is trained well, it can create enormous wealth.”
#6 Work to Learn – Don’t Work for Money
The lessons conclude that you should work to learn and not work to earn. If you are searching for money and security, that’s the only thing you’ll ever get. A direct tip is that your education is an asset. Continue to grow that, because it’s essential to know a little bit of anything. Successful people like doctors, lawyers, and other specialists struggle financially because, as quoted in the book, “they are one skill away from great wealth.”
Kiyosaki believed everyone has potential, so people should be busy learning how to unlock their potential. Stay true to your end goal and continue to work hard. The experience will make you smarter with each pass.
In conclusion, create your passive income. As Kiyosaki quotes “Job is an acronym for ‘Just Over Broke.’” Learn to build your assets because to be rich, you need to have more assets than liabilities. Be better than others by learning to handle yourself. Use everything you’ve learned about this article to manage the cash flow in your life. Instead of thinking about how to spend your money, smartly consider how you can bring the most out of it. Kiyosaki says everybody has their potential to be rich; it’s a matter of search the right way that works for you.