Robert Kiyosaki is a great author and a mentor on personal financial planning.
Every one of his book is extremely easy to read, yet contains precious ideas to change someone’s life completely.
His book “Rich Dad, Poor Dad” was an absolute legend, which I’m looking to do a Top 10 summary in the near future.
Now, here are the Top 10 great ideas from another famous book by Robert – “Rich Dad’s Guide to Investing”
*Please note that this is only a high level summary of the book, and I still strongly encourage everybody to go purchase the book from bookstore or Kindle for the best learning experience
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“Money will be anything you want it to be.”
Yes, your mentality is important before you take any action to build wealth.
Money will seem to be scarce if you believe it is difficult to make money.
Vice versa, money will ‘become’ abundant if you start to believe you can be rich, then money will start to seem easier to make.
That’s the power of your mentality
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“Mistakes are good”
Our education system has taught us NOT to make mistakes.
Mistakes are bad. Mistakes lead to low score.
That’s why today’s education system produces employees.
Robert, and in fact many billionaires look at mistakes differently.
Mistakes are only bad if you do not reflect on it.
Don’t be afraid of making mistakes, it’s the best learning opportunities you can wish for. When you make mistakes, spend time to think about how to avoid it next time.
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“Riches at the top 10% think about how to create asset without using money”
How do you build up your asset column without money to start? Yes it’s indeed possible.
We are living in Information Age, an era in which an idea can turn to asset. It no longer take money to make money.
We are seeing more and more entrepreneurs with no wealthy background ended up building great companies. Because they had an idea and worked for it.
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“Ideas do not need to be new or unique, it just needs to be better”
Yes, you do not need an idea that no one else has though about.
Why not try improve an existing idea? Bill Gates did not build software from scratch, he bought it from other programmers and made it better.
Great companies can be built from simply improving on old ideas.
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“Start any business you can”
What if you do not have a big idea or know how to improve an idea?
Robert suggests everyone to start any business you possibly can. You will start to learn how business operates and it is an important start to move to the “B” (Business owner) and “I” (Investor) side of the CASHFLOW quadrant.
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“Most businesses are started part time, work full time and start a part time business”
Robert suggests everyone to keep your full time job while trying to start a business part time.
Many great businesses have started this way. It is important to sustain your basic life standard, an important way to manage your risk.
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“Work for skills, not for money”
If you think working for a company = working for money, think twice.
True “B”‘s and “I”‘s only work for skills when they have to work for someone.
Robert chose to work for Xerox because he wanted to develop sales and communication skills and he knew that Xerox had a world-class sales training program.
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“Invest in yourself”
YOU are the your single biggest asset you own. You have time, energy, power, passion, emotions…everything needed to become successful and happy.
Robert strognly recommends everyone to invest in education, finacial literacy, communication skills, sales skills…
Robert wrote an excellent guide on how to become a succesful business owner in his book, highly recommend to read it if you want to know more.
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“Don’t dream about big boats, dream about big team”
Don’t try to achieve on your own. Our education system discourages collaboration, it is called ‘cheating’.
But in business, collaboration is essential. Businessman understands how to gather the best people in his business.
Start gathering your own financial adviser, legal, accounting teams to help structure your business and life.
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“Set your mind and start today”
Robert reiterated over and over again the importance of your will and mind power.
You need to thoroughly think about how strongnly do you want to be rich and are you willing to work hard for it.
Success won’t belong to people who give up easily. Success happens to people with strong will and act immediately.
Most people are employees because they are too afraid to lose “security”.
But in reality, “security” will not come from handing your own fate to a big corporation.
True “security” should come from empowering yourself and make yoursefl immune to any adverse conditions in life.
What is your choice?
Robert Luo 