Welcome to part 3 of the review of Kiyosaki’s key thoughts from ‘Rich Dad, Poor Dad’. In this article I am going to go through quotes from ‘The rich invent money’ and ‘Work to learn – don’t work for money’.
Lesson 5: The rich invent money
“Often in the real world, it’s not the smart who get ahead, but the bold.”
Judging by the academic skill of some of the company owners I worked in the past, this is true. However, I don’t think you can be successful just because you are brave and every truly successful business person I have ever met was at least average-human smart. This is a good news though – if you are hoping to start a business, even if you don’t think you’re particularly smart, all you need to do is muster up enough courage to step into the field you want to be in.
“Games reflect behaviour. They are instant feedback systems.”
Ok, I can’t argue with that one. Are you a sore loser or a generous winner? Can you handle setbacks? Can you strategise while keeping your face straight? Can you mind your business and still keep an eye on competition? Will you pivot or will you cry about injustice if somebody beats you? I love a good game.
“The single most powerful asset we all have is our mind. If it is trained well, it can create enormous wealth.”
Remember that your thoughts are shaped by your experiences. your behaviours are shaped by your choices based on your experiences. Yes, your mind is the most powerful tool you have, but only if you keep it in motion.
“The problem with “secure” investments is that they are often sanitized, that is, made so safe that the gains are less.”
No – problem with secure investments it that right now they don’t exist leaving us with a choice of not investing or learning to live with a risk which the previous generation of investors might not have experienced. Kiyosaki here is the previous generation, and so are the people who used to make millions as traders and bankers. At least in Europe the notion of a fairly safe quick win is long dead and all we have left for ‘low risk’ is slow burning assets which in theory could be wiped out the moment there is a dip in the economy.
“It is not gambling if you know what you’re doing. It is gambling if you’ve just throwing money into a deal and praying.”
In essence, this is true. But going back to the point above, majority of investments are now in a ‘prayer’ moment. Especially with the pandemic going on, we’re all forced into a position of a gamble. I am sure that sooner or later we will climb out of it, but before we do, it is what it is.
“Great opportunities are not seen with your eyes. They are seen with your mind.”
This quote can be interpreted in many ways. One of these could be that copying another person’s business concept is a bad idea. The other is that you need to be unique. And while it might seem that being unique in a world where everything seems to have been invented is hard, remember that a long time ago we lived in caves and didn’t know what fire was. I am not asking every person out there to be an inventor, but I am asking you to consider your life and your needs and switch your lazy brain on – what makes your life easier and better? Can you make a business out of it?
Lesson 6: Work to learn – don’t work for money
“Job security means everything to my educated dad. Learning meant everything to my rich dad.”
There is nothing wring with the emotional need for job security. People who are notorious entrepreneurs are wired a little differently to people who prefer a steady income and not one nor the other are in any way bad, they’re simply different. Both can mean success but in different ways. As example, my parents have been self-employed their whole lives. This means that my childhood, financially, was volatile. Now, in their retirement my parents are well off, probably in the top 1% in the area they live in. Does that mean I’d like to go through the same volatility they did? Not necessarily, I might value steady comfort and not worrying where my next meal comes from over big payout once or twice a year. Does it mean that they are more successful than me or vice versa? No. Does it mean that their learning potential was greater than my own? Again, no – because we have the power to determine our own paths based on what we value. And in terms of learning, you can learn in more than one way.
“You want to know a little about a lot” (was a rich dad’s suggestion).
You should now a little about a lot, and you should also know a lot about something that interests you. Why? You’ll make for a better conversation partner that way, you’ll be able to understand the world around you in a more meaningful way and you might actually stumble across a life-changing idea while you learn. This quote is a decent piece of life advice.
“Job is an acronym for “Just Over Broke”.
No – a dead end job might be, but professional and highly paid jobs are far from that. And just to argue for the sale of arguing, CEO is a job. Entrepreneur is a job. Founder is a job. Employee is a job. A lack of job which is able to support your dreams and desires is what is ‘just over broke’. So if you find yourself in a position which you hate, find no fulfillment and no financial incentive in, really ask yourself why you are there. And yes, I am talking form a position of privilege and experience – I worked my way into a job I desired and which supports my lifestyle. And as an averagely-intelligent and moderately-brave human being I can say that you can find your way too.