I read the book Rich Dad/Poor Dad by Robert Kiyosaki and Sharon Lechter along with some snapshot videos by Rich Grad. I found it important that we must truly determine the value of what we have learned growing up regarding financial management and financial success. I learned when I was a young boy that it takes money to make money. I learned this primarily from my parents. We were considered living a poor people. Money was earned from both of my parents working hourly jobs. When they were paid the money came in and then it came right back out to pay for expenses. I thought this was how everyone lived their lives.
Then I watched my grandmother run her own company up to about 11 years old. She picked up grandpa’s company soon after he passed away. She lived what was considered a middle class lifestyle. The income was large and it went to liabilities and then onto expenses. What income she brought in went back out to pay for the liabilities and expenses. So, I adjusted myself to live the lifestyle my grandmother lived.
From reading the book and the little Rich Grad segments, I have now learned that a wealthy person lives off their assets. An asset is money coming into your pocket without you having to putting in one hour of labor. I always thought owning your own home was an asset. After all, it was all part of living the American dream. I have learned since that a home is not an asset. A home is a liability unless it is rental property. If what you own is not putting money into your pocket then it is not an asset.
To have long-term financial freedom and financial success you must invest in assets. The more assets the more wealth. Start small investing in assets and in time, the assets will take care of you and your family regardless if you are employed. This is what we should be teaching our families. This is the financial management and freedom that will help our families for generations that follow.
Here are some links to Rich Grad that I think you will find enlightening.
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