Tag Archives: financial statement of rich person

OVERCOMING OBSTACLES – RICH DAD POOR DAD

Posted on by under Bibliophile: Rich Dad Poor Dad

It is not necessary that people with decent earning having a Financially literate. And The financially literate person also is not able to create a good asset column. The five reasons are 1.  Fear 2.  Cynicism 3.  Laziness 4.  Bad habits 5.  Arrogance

  • Overcome fear

Everyone has a fear of losing money. It is not a problem but the problem is how we handle it and react to it. Whether a person is rich or poor, he does not like to lose money. Sometime and somewhere, the rich person also has lost money.  “Everyone wants to go to heaven, but no one wants to die.” when we met a loss then we need to learn from it so that we grow stronger and smarter. We need to learn how to convert losses into profits. We have surrounded by failure. We can fall while walking but we cannot stop walking due to the fear of falling. If we fall then we learn lessons from it and walk again carefully. But we never decide to not to walk. If we want to win then we must have to accept the failure also. We do not only get winning. We must have to be focused on getting success but with accepting failure also.

  • Overcoming Cynicism

Noise coming from inside us or from outside through friends, media, family, etc. Which disturb us and impact on our decision making and emotional ability.

There are many opportunities available to make money but our doubts and cynicism stop us from doing it. It led us to play safer and that brings us back to the area where we only remain with the poor or middle class as an option.

Loser involves into the criticism and winners involves into the analytical part. The analysis opens our mind and we can also come to know our mistakes if we have made. Also, we can come to know how to improve our correct decision in a better way.

If people directly choose not to lose money without making any analysis then it will start creating an unavoidable problem. And actually, it will become impossible to get money.

We fear failure but many of the successful people become successful after failing for many of the times.

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  • Overcoming laziness

We always staying busy into many of the stuff and avoid an important part of our life. It can be running behind wealth, health, leisure, etc. So that for remains little less lazy, we need to be greedy.

Rich dad believed that the words “I can’t afford it” shut down your brain. After that brain doesn’t have to think anymore. “How can I afford it?” opened up the brain and forced it to think and search for answers.

I can’t afford it close down all the possible doors, and creates a depression. But reversely, how can I afford to open many possible doors, help us to bring a possibility to afford it. This creates a stronger mind.

When our mind stops us, we need to ask to our mind that what’s for me into this? The mind automatically starts working, greed for our betterment kills our laziness. So, greed is good but excess of everything is a poison and we should keep it to the limit.

  • Overcoming Bad Habits

Our habits make or break us rather our education. If we have a good education but having a bad habit then good education is of no use.

Majority of us first pay due bills and then pay to ourselves if anything left. This is not a habit of rich people. We need to pay ourselves first then to anyone else.

When we pay ourselves first then we have pressure to pay to our creditors. This pressure motivates us to work hard and generate extra income to pay them.

If we have a good money habit to pay ourselves first then we can grow stronger mentally, financially. This is a habit which helps us to grow more.

  • Overcoming Arrogance

Many times, the majority of people does not know about the money. But they do not tell the truth. Rather we should accept that we do not know it and start finding an expert or a book for educating ourselves.

Disclosure – Companies mentioned in the article are just for an example & educational purpose. It is not a buy/sell/ hold recommendation. 

Read for more detail: Rich Dad Poor Dad: What the Rich Teach their Kids About Money that the Poor and Middle Class Do Not!

WORK TO LEARN — DON’T WORK FOR MONEY – RICH DAD POOR DAD

Posted on by under Bibliophile: Rich Dad Poor Dad

When we talk about the mindset of rich and poor people then both have a very reverse mindset. Rich people work for learning and poor work for security. These mindsets help to the rich for becoming richer. And poor to poorer. When we spend time for learning, the time we start creating our fortune.

We all focus on getting specialized knowledge to get promoted at the job. But rich dad suggests learning many in the basic. We should focus on every department and learn about all. When we have at least basic knowledge of every department then we get help while we start any of the ventures.

Rich dad valued learning to lead men out from dangerous situations. “Leadership is what you need to learn next,” he said. “If you’re not a good leader, you’ll get shot in the back, just like they do in business.”

If we are working somewhere then also, we need to focus on learning. Learning only help us to grow well. We try to implement what we have learned and if we got failed before the age of 30s then we have a chance to recover. Fear of failure and rejection stop us from acquiring learning and implementing it. It stops us from thinking about how and from where we get new learning. This mindset turns out to be unsuccessful. Our learning will prove more important in the long run to become richer. If we stop learning then we stop ourselves from growing. Learning can lift us in terms of the wise decision, wise person, better growth potential and become richer.

We need to learn the selling and marketing aspects of the business. If we can sell what we are good then we can earn a good amount of money.

For receiving more money, we need to give money also. It is a law of money, the more we give to the needy, the more we receive. It is also detachment from our wealth. The more we get detached, the more we receive back.

Disclosure – Companies mentioned in the article are just for an example & educational purpose. It is not a buy/sell/ hold recommendation. 

Read for more detail: Rich Dad Poor Dad: What the Rich Teach their Kids About Money that the Poor and Middle Class Do Not!

THE RICH INVENT MONEY – RICH DAD POOR DAD

Posted on by under Bibliophile: Rich Dad Poor Dad

Often in the real world, it’s not the smart who get ahead, but the bold.

Our financial geniuses require both financial knowledge as well as courage to build wealth. If our fear is so strong then our geniuses also do not work. So that we have to be bold, have to take a calculated risk. We need to convert our fear into power. When our mind is emotionally unstable then we cannot make a wise decision and also, we invite situations which are harmful to us only.

Many of us waiting for the opportunity but we should create an opportunity to get out of the rat race. This thing requires financial intelligence.

We have to understand that money is not real, the important is our mind. If we train it well, then we can defiantly create an enormous fortune.

We can use many available opportunities or can create an opportunity for inventing money. Many of the people save money and invest in the assets from where they get safer interest. But this interest is being taxed. This is a safer option but not a smart option. We have to be financially intelligent to think and make all such wise decisions.

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The problem with “secure” investments is that they are often sanitized, that is, made so safe that the gains are less.

Great opportunities are not seen with our eyes. They are seen with our mind.

Winners do not have a fear of losing in the mind. But losers always have it. This fear stops losers for achieving success.

If we want to become a more professional investor then we need to acquire skills such as –

  • Find an opportunity which everyone else missed – we have to focus on the opportunities which all others have missed and work on it.
  • Raise money – we need to identify alternatives for raising money except for bank.
  • Organize smart people – we need to hire people smarter than us to get advice.

What we know is our greatest wealth and what we do not know is our greatest risk. We need to manage risk, need to learn rather avoid it. More we train our brain; more we acquire knowledge the more we can become opportunistic to acquire more wealth.

Disclosure – Companies mentioned in the article are just for an example & educational purpose. It is not a buy/sell/ hold recommendation. 

Read for more detail: Rich Dad Poor Dad: What the Rich Teach their Kids About Money that the Poor and Middle Class Do Not!

MIND YOUR OWN BUSINESS – RICH DAD POOR DAD

Posted on by under Bibliophile: Rich Dad Poor Dad

We have seen in the previous chapter that many of us working for the others and lastly that would keep us into the financial struggle. We consider many things as an asset such as a car, wristwatch, expensive products, smartphone etc. But does it have the same value when we going for sold?

Though we are doing a job we need to build an asset which has a real value. This act only can help us to become rich.

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When we earn during our job, we need to focus on buying an asset rather than spending money on luxury items. Rich spend last on luxury items but poor spend it on first. These luxury items will create an impression of a rich person but actually, we stuck into the more debt trapped. We should focus on not to look rich, but to be rich. We need to understand the difference between looking rich and being rich. Looking rich is easy nowadays and anyone can look rich but being rich is difficult. We have to control our emotions, saved ourselves from social traps, not falling into the debt trap, etc. We need to make an arrangement that our assets earn for us and we buy luxury from that income rather buy it on the credit. Credit help us to fulfil our temptation immediately but using that we cannot put our step forward to being rich.

Poor and middle-class people suggest that rich people should get punished through tax but actually, middle-class people get highly punished through taxes. They try to look rich and buy an asset which does not have real value so that they have to pay a tax when they acquire depreciating assets. And rich people buy appreciating assets which don’t have higher taxation compared to depreciating assets and also earn income from it.

Disclosure – Companies mentioned in the article are just for an example & educational purpose. It is not a buy/sell/ hold recommendation. 

Read for more detail: Rich Dad Poor Dad: What the Rich Teach their Kids About Money that the Poor and Middle Class Do Not!