In my pursuit for further educating myself when it comes to achieving financial freedom, I enrolled myself in a free online coaching in the Rich Dad Poor Dad lessons of Robert Kiyosaki.
In one of the chapters of the e-learning that I’ve been reading, Robert Kiyosaki suggested the Rich Dads Get Rich Strategies in which he used to get out of the rat race and become a business owner and investor.
I would like to share it all to you my readers so we can also use it to achieve financial freedom just like what Robert Kiyosaki did:
STRATEGY 1: Become financially literate.
The number 1 strategy to get rich is to become financially literate. Financial literacy is not always taught in schools. It requires proficiency in several areas: economic history, accounting, taxes, investing and building businesses. These are difficult subjects but don’t let the difficulty scare you.
Becoming financially literate has nothing to do with how far you got in school. It doesn’t matter whether you’re a failure in school, a jeepney driver, a janitor, or an executive of the company. What matters most is that you’re willing to educate yourself.
One of the things that I learned about financial literacy is on cash flow patterns. Based on these cashflow patterns, you would be able to determine if you belong to poor, middle class or rich persons.
Kiyosaki compared people with average financial intelligence vs. people with advanced financial intelligence:
People with average financial intelligence know only:
- Bad debt, which is they try to pay it off.
- Bad losses, which is why they think losing money is bad.
- Bad expenses, which is why they hate paying bills.
- Taxes they pay, which is why they say that taxes are unfair.
- Climbing the corporate ladder instead of owning the ladder.
- Buying shares of a company rather than selling shares of a company they own
- Investing only in mutual funds or picking only blue-chip stocks
People with advanced financial intelligence know the difference between:
- Good debt and bad debt
- Good losses and bad losses
- Good expenses and bad expenses
- Tax payments and tax incentives
- Corporations you work for and corporations you own
- How to build a business, how to fix a business, and how to take a business public
- The advantages and disadvantages of various investment vehicles: paper securities, real estate properties, and businesses
STRATEGY 2: Work to Learn
Most people focus on working for pay that rewards them in the short term; over the long term, this strategy can be disastrous because it doesn’t build up enough assets for a stress-free retirement. You’re not sure if your employer will be there for the next 10 years. What if you were laid off? Or what if the company closed?
If you want to be financially free, you need to seek work for what you’ll learn, not for what you’ll earn. This is one of the main reasons why I left my previous company. With my tasks, I am no longer learning and in that way, I feel rusty. It’s not always the pay that matters. It’s the satisfaction and the amount of learning that you get. The skills you learn when you work for someone else can be invaluable when you begin to work for yourself—and if you want to be financially free, you’ll have to work for yourself.
Kiyosaki said that there are three essential skills that we need to learn from our job while we are working for somebody else. These are Leadership, Management, and Sales & Marketing.
STRATEGY 3: Find Mentors, Build a Team
They say that no man is an island and that two heads are better than one. The same applies when you want to get rich and achieve financial freedom. You need to seek out mentors and advisors who can teach you the valuable skills you’ll need to become a business owner and investor. No one climbs Mount Everest alone, and you shouldn’t try to climb your personal financial mountain without the aid of others. Without support, you’ll never reach the top.
Kiyosaki said that “business is a team sport.” One thing is certain: When you want to get rich, you need to set out to work for yourself. In doing so, you’ll need more than just friends and family—you’ll need a team of professional advisors. According to Kiyosaki, one secret of the rich is their humility. They surround themselves with people who know more than they do. They surround themselves with experts.
STRATEGY 4: Work For Yourself
Kiyosaki said that most people work first for the owners of the companies that employ them, then for the government through taxes, and finally for the banks that own their mortgages. No wonder they have little left at the end of their working days! To escape the rat race, you need to work for yourself.
You should think like Rich Dad. Instead of saying, “but the odds of a start-up succeeding are against me—nine out of ten companies fail within five years,” say to yourself, “one out of every ten businesses succeeds within five years, and mine will be one!”
STRATEGY 5: Create Money
Kiyosaki said that “Money isn’t real. It’s just an idea!” Today, we are now living in the information age. The information age allows some individuals to get ridiculously rich from nothing more than ideas and agreements. There are people who makes a lot of money in the internet either by maintaining a website or by trading stocks and forex online. Today, it’s not at all out of the ordinary for millions to be made instantaneously out of nothing.
How do you create money?
Finding an opportunity that everyone else has missed.
Learning how to raise money through investments and assets.
Working with knowledgeable people to help you reach your financial goals.
STRATEGY 6: Give Back
Kiyosaki believe on charitable giving. Personally, I also believe on the universal law of nature and that’s Karma: “Do unto others what you want others to do unto you.”
Also, we should not forget Newton’s Law that states: “For every action, there’s an equal reaction.” If you’re a greedy Scrooge, people will respond to you in kind. You have to give money to get it back. Remember, give and you shall receive.