Author: Robert T. Kiyosaki
I’ve
been mad on Robert’s books, since I read Rich Dad Poor Dad a few days ago.
And this book I read today really lives up to my expectation. In this book,
Robert discuss the price of becoming rich without being cheap, crooked, or
needing to marry a rich person. Like Rich Dad Poor Dad the books are filled
with insightful and unconventional thoughts about money.
As
usual, I like to pick up a few points which I think are the most important ones
to me among the things I learn from the book to review. The first chapter of
the book starts with the quote by his rich dad, “Most people want to get rich.
They just don’t want to pay the price.” This reminded me of a book I read
months ago, Think and Grow Rich written by Napoleon Hill. In the workbook of
it, there is column asking us to fill in what we will give/do in return for the
money we desire. The idea behind them are the same, which is if you want something,
you need to pay for it. Coming across the idea again makes me realize the
magnitude of having the mindset of price which is often ignored, for example, I
want to be healthier and heal my vocal problems quickly without a surgery, but
very often I skip my plan to exercise in the park, or consume too much fried
food, or cold drink and think that by changing my habit a bit from time to
time, I would eventually reach my goal. Well, I failed to realize that to get
what I want I’ve to pay the price which is to change my lifestyle immediately
and drastically. In the book the author also mentions a study by one government
of tracked people from the ages of 20 to 65. The study found that by the time
they’re 65 years old. 1% were wealthy. 4% were well off. 5% were still working
because they had to. 54% were living on support from family or the government. 36%
were dead. 35% percent of that wealthy 1 % and a large percentage of the well
off 4% actually inherited their wealth. It really stunned me. It’s like a
wake-up call telling me that Lucus, you need to be prepared to pay more price,
to do more than you’re doing now if you really want to achieve your dream of rebuilding
your own house for your mother, immigrating to America, and being a successful
person by the age of 30.
In
Rich Dad Poor Dad, they author suggests us to study accounting, investing,
market, and the law to enhance our financial intelligence. In this book, the
author says that except from financial education, which teaches us how to have
money work for us. We also need to pay attention to the other two kinds of
education which are academic education (teach us how to read, write, and do
arithmetic), and professional education (teach us the skills to work for money).
Japanese famous author, and businessman Naoyuki Honda advocates learning
Finance, IT, and English, and Dr. Kenichi Ohmae suggests people studying
finance, problem solving skills, and English. My personal view is that except
from paying attention to the three kinds of education we still need to invest
in English, since English is not the first language of all of us. And it is still
the lingua franca, and many good books are written in English. As for problem
solving skill, I think it’s a skill you would master automatically when we’re
on our way to fight for success. What interests me the most is IT. Well, for
sure, it’s really a money-making business. At least many of the world leaders
in business are actually from IT industry, like Mark Zuckerberg, Steve Jobs,
Bill Gates, and Larry Page. It has also changed many industries and still
changing them, for example, the teaching industry I’ll probably be in. There’re
more and more people studying a nonline degree rather going to a university
with a campus. Rumor also has it that there’ll not be any campus in the future.
Hence I personally think that except from paying attention to the three
fundamental types of education Robert mentions in the book, it’s also very
important for us to invest in English, and pay attention to the development of
IT, and gain more IT knowledge, or it might limit our growth.
In the
book, Robert also talks about what his rich dad told him about good debt and
bad debt. His rich dad defined good debt as debt that someone else pays for
you, and bad debt as debt that you pay for with your own sweat and blood. An
example of the usage of the knowledge of good debt is buying a house with a loan,
and then renting it to renters after some paint jobs, or renovation. And use
the rental to pay for the mortgage, and the left rental will become the passive
income. What worth a mention is that very often the house will also appreciate from
time to time. Not only will you earn the passive income, you will also earn the
appreciated house after years. Personally I think this is another framework
which is as important as the framework of assets and liabilities which is
mentioned in Rich Dad Poor Dad. I always think of framework as something very
important because it can help us make more accurate decision in the shorter
time, so it can be very helpful to remember this framework.
Except
from this, the book also mentions lots of other important knowledge like,
financial statement, the values of mistakes, the importance of change, and etc.
I really recommend people who aspire to succeed financially, especially those
who want to get rich by studying hard, and getting a good job to read his
books. I’m sure they’ll be very helpful for them.
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