In any book that you read, what counts most is your personal learning. Were you a better person after reading the book? Did
the book change the way you think? Did the book open new horizons for you? Did the book change your life?
To this particular book. I answered “yes” to all these questions. The book was “Rich Dad Poor Dad.” Now this book was a book about fantasy and lore like Harry Potter or Lord of the Rings. It isn’t technical book about management like what you could find at Yale and Harvard. Rather, it is a collection of anecdotes, stories and lessons Robert learned from his “rich dad.”Now who is this “rich dad?” Rich dad was the father of Robert’s best friend Mike. Despite being an eighth grade dropout, built businesses and became one of the richest men in the state of Hawaii. He taught Robert and Mike at a very young age about money and about finances. This enabled both Robert and Mike to eventually run companies and retire young and rich. Here are the lessons I have learned from the book.-The rich do not work for money. Money works for them. – Ever wonder where the mall owners are? You see the
security guards, the sales ladies and the cashiers but no owner and yet the business runs very smoothly and remains profitable. That is how the rich play the game. They leverage upon time, money and resources to make more and not use their own efforts.
-Saying “I cannot afford” is a sign of mental laziness. – As a youngster my parents have taught me to be frugal. A penny saved is a penny earned according to them. I was trained to buy only when things are on sale or is on a special price or promotion. Also, whenever I was telling my parents about that action figure or gadget I wanted to buy, my parents would always use the “It’s too expensive” line. I was trained not to be lavish and to just make do with what we had. Though there is nothing wrong with saving money, we must learn to expand our means rather than be contented with what we have. -The school system trains people to be employees and not entrepreneurs. – I learned this the hard way. After spending four years under a management and business related course, I found out I knew next to nothing about money. The same thing is true for my best friend who studied entrepreneurship. They didn’t even teach us how to register our trade name or what government agencies could assist us in opening our own business.
-The rat race is a trap. – Just like a mouse trap, the rat race has bait so you get attracted to it.In many ways its like employment or self-employment. You get lured into it because of what it can get you such as compensation and
benefits however, you become so comfortable that you do not get out and become afraid to go beyond your comfort zone. Our motivating factors then become fear and greed. We fear losing our job or small business and the income security it offers. We also become greedy in the sense that when we get promoted in our job or we experience growth in our small business, we automatically upgrade our lifestyle. -There is no job security – Parents often teach their kids to study hard get good grades and find a nice safe secure job with high pay and excellent benefits. That is good sound advice had you lived a few generations ago. Today job security no longer exists and employee benefits have severely diminished due to the oversupply of employees and the lack of jobs. Gone are the days when you work for a company for your entire career. People are free agents now and jumping ship has been commonplace.
-Learn to manage risks – Usually what keeps people from going into business or doing anything for that matter is fear. “Its too risky” they say. “What if I do not make back my investment” is another one. Well if we have this kind of attitude then we’ll stay put and never get anywhere. Learn to minimize risk instead of avoiding it.As they say “No pain no gain” and “No risk, no return.”