Rich Dad Poor Dad | Lesson 2: Why Teach Financial Literacy?

Rich Dad Poor Dad | Lesson 2: Why Teach Financial Literacy?

Chapter Summary

In Lesson 1, I learned how different the mentality was between Rich Dad and Poor Dad. I resonated with Poor Dad and his mindset as I have always been focused on getting a better job to pay for my life and all the expenses.

Since starting my life-changing journey 5 years ago, I have had huge mental shifts in how I see myself and how I see money.

Being excited to read Lesson 2 would be an understatement.

This next chapter delved into the importance of financial literacy.

Financial literacy is the knowledge of how money works and finding ways to make it work for you.

Three decades later, I read about how Rob and Mike’s strong foundation of money management set them up for life: Rob could retire before 50 years of age, while Mike inherited Rich Dad’s business and took it from strength to strength.

Assets VS Liabilities.

Furthermore, we learn the difference between assets and liabilities. An asset generates income, whereas a liability becomes an expense and eats away at your income.

Robert included examples of the Cashflow pattern of an income statement, where an asset generates income. He also showed the Cashflow pattern of an income statement for people who own liabilities rather than assets.

Robert gets asked similar questions all the time: How can I start? What can I do to make millions like you?

His answer: If you want to be rich, spend your life building your asset column. If you want to be middle class or poor, spend your life buying liabilities that you think are assets.

One main takeaway is the notion that money does not solve all problems. Learning this over the years, I would agree.

If you don’t have the skills to manage money well, even if you make more money, you will see the same problems. Just on a bigger scale.

Robert explained the general cycle of cashflow for young, newly-weds or graduates. A couple might move in together and instead of building assets, they use their income to pay for their rising expenses.

Income goes up, but so do their financial obligations.

There begins the cycle of the “rat race”. This drove home the importance of financial literacy and why having a strong foundation of money-management is crucial to success.

Personal Reflections

Main takeaway for me personally was Robert’s view on being a homeowner.

Rob explained 3 ways a homeowner is an employee:

  1. You work for the company. You’re adding the the success and riches of the business owner. Even if you work harder, your earning is capped.
  2. You work for the government. Your income is taxed heavily depending on your income threshold. Most of the working year and income go to tax before you even see the money.
  3. You work for the bank. Once you’ve paid tax, you generally need to pay for your mortgage and/or credit-card debt.

Within the last few years, property has been an interesting topic of conversation between my boyfriend and me.

This view of a “homeowner being an employee” is not the same logic I’ve been exposed to. I’ve heard about cars being a liability – that makes sense. I always thought owning property would be a good way to ‘build wealth’ as so many other people have done this before me.

As I read further on, Rob mentions that his goal isn’t to stop people from buying property, but he is saying to invest wisely and choose homes that will generate enough income for you.

Financial survivability.

Wealth isn’t about all the material things you can buy, but it is measured by how long you can survive for if you stopped working at your job today.

Can I survive a month or a year if I stopped working? My answer is a resounding no.

However, it is just the beginning of my learning and this makes me very excited to see how financial literacy could change the course of my life.

After reading this chapter, I felt quite frantic to acquire income-generating assets. I forget to remind myself that this takes time.

It may take a year or three – or even longer – to find myself at this level of wealth. Patience will be essential – something I am trying to work on a lot!

As long as I am doing one task each day to get closer to my goals, I will achieve them.

Action I have taken & future plans*.

At the moment, I have begun investing in Raiz (investment app) and am planning to purchase stock in social media.

I have officially gotten approved for a second job, so I am hoping this will begin my journey to building my asset column.

It’s all so exciting!

My dream is to have assets pay for all expenses each month so any income I do receive, will be pure profit to go towards this blog, to re-invest or transferred to a personal savings account.

*My goals may change and I’m okay with that. We can always prepare for the best and worst moments in life but until it happens, or unless we take action, we won’t know how the future will be.

On to the third Lesson!

Have you read Lesson 2 yet? What did you resonate with most? What did you find challenging?

Read Rich Dad Poor Dad now and change your mindset!

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Image by Valentina Conde.

Rich Dad Poor Dad | Lesson 1: The Rich Don’t Work For Money

Rich Dad Poor Dad | Lesson 1: The Rich Don’t Work For Money

Hey everyone! My brother gave me this infamous book to read, so I wanted to document my thoughts, feelings and actions each chapter.

Since the beginning of the year (2019), life has felt a little lack-lustre. I needed a new focus. Something that would level-up my thinking. This book is exactly that!

If you’re interested in some golden nuggets of advice, join me on this journey of learning!

Chapter Summary.

As you might imagine, the first chapter covers the beginning of Robert Kiyosaki’s journey to financial education and freedom.

It follows Rob and Mike’s journey (Rob’s childhood best friend) getting a job from Mike’s dad in exchange to learn how to make money. They earned 10 cents an hour. Later, they worked without pay.

Throughout the chapter, Robert examines his rich dad’s thoughts about work and money versus his poor dad’s thoughts toward work and money. I found this particularly fascinating. I’ve grown passionate about mindset and how powerful our minds can be when it comes to overcoming life’s barriers.

Fear & Greed.

Rich Dad emphasised the fact that we must be honest with how we feel if we were to change our thinking. He mentioned that all people are ruled by two emotions: fear and greed.

The fear of being without money is the force that gets us up in the morning and go to work. Then greed comes every time we get paid: we imagine all the things that money can buy. The pattern then continues.

If we can admit to ourselves how we really feel, we can then stop reacting emotionally and start to think logically. We can ‘free ourselves’ from this trap.

Mindset.

Something that stood out to me, was rich dad’s sentiments about why people think the way they think: because that’s all they know!

Parents pass down their knowledge from their own parents and so goes the cycle. It’s important to reflect on that for a moment. What values were you given as a child? Do you agree with them still or were there a few you discarded?

Similarly, those who go to school, are taught how to be a good worker, not how to manage money well.

Whether it’s our parents or society, we all have a different perspective about work ethic and finance.

“Being broke is temporary. Being poor is eternal.”

First, be aware of how you relate to money.

Change your perspective from fear, to opportunity.

Fear is an instinctual emotion to enable us to survive. Once we override this fear, our potential becomes endless.

Personal Reflections.

My view of money is similar to the majority. Scarcity and fear was a common theme growing up as a kid. Whether it was financial, educational, physical or emotional — I would be afraid.

I was taking on a blueprint for how I saw the world and myself from my family and from society.

From 22 years old onwards, I have been breaking these barriers and overcoming fears in all aspects of life.

I’ve been chipping away slowly. We can’t always jump in the deep-end. We must first learn to swim. That’s my approach at least!

My impression of this chapter was that a lot of people continue in this “rat race” of life and never question why they do the things they do. I could definitely relate to this as there was a portion of my life from 18 to around 22 years old where I was financially careless.

Even now as a 25 year old, I don’t always make wise decisions when it comes to finances. However, I’ve come leaps and bounds from my 18 year old self; I no longer spend money mindlessly.

Rich dad offered jobs to Rob and Mike to teach them a lesson. I resonated with this as I have been blinded by this ‘race to get paid more and more’.
Back then, this way of thinking paid for my necessities: rent, food and car expenses.

As I read each page, and each nugget of wisdom Rich Dad shared, I realised that I still have Poor Dad thoughts: afraid of not having ‘enough’ in case of an emergency. Thinking about jobs that will pay more money.

This year, this pressure to ‘earn’ became unbearable. Although it motivated me to find a volunteering role and that lead to a full-time contract, I was still operating from a place of deep fear.

On the other hand, as the year has progressed, I have started thrifting, flipping online and cutting down expenses so I can keep more than I spend.

After all, it’s not what you make, it’s what you keep.

Fear and greed are emotions I’ll always have. What matters most, is how I respond.

The rich don’t work for money. The rich have money work for them.

Rich Dad

I’ve heard this quote throughout my life and had no idea what it meant. I didn’t care to know as a kid.

Now, as an adult and with experience in the way of thinking as Poor Dad, the lessons in the book make sense.

I always thought I was ‘too dumb‘ to learn a bout investment. My strengths are in art and writing, not in evaluating risks!

However, after completing this first chapter, I think there’ll be a lot of valuable information I will be able to action in no time!

Final notes.

Each chapter has a “Study Session” at the end. Answering the prompts helped me sift through my thoughts.

Surprisingly, I’d answered several of these questions in the last few years.

It was validating to know that the videos, articles and podcasts I’ve been listening to aligns with this “abundant” way of thinking.

I have a long way to go but I am confident this book will continue to help me break down my fear of money. If you’re interested in this book, I’ve included a link below! [Note: Affiliate Link]

On to the next chapter!

Have you read this book yet? If so, which lesson did you resonate with most? What did you find challenging?

Read Rich Dad Poor Dad now and change your money mindset!

Stay connected for updates, quotes and general life-happenings on FacebookInstagramDepop and Twitter!
Do you have curious questions? Tumblr is my new Q&A platform!

Why Working 2 Days a Week Has Increased Productivity.

Why Working 2 Days a Week Has Increased Productivity.

1. It motivates me to earn more.

Although going down to two days a week was initially a shock to my mind and body, I am so grateful because it has driven to earn more in unconventional ways.

It has been quite difficult to let go of the “safety net” of a 9-5 job, but it has been equally thrilling to try new things and push my comfort zone further.

Over the last 5 months, I started selling furniture and clothing on Marketplace.

The more I sold, the more motivated I was to get the same results.

I decided to focus on a few avenues to achieve these results:

  • Continue selling furniture.
  • Begin a niche of pre-loved petite clothing.
  • Blogging.
  • Apply as an UberEats Driver for flexible income.

Although the above are volatile forms of income, I am working on making these permanent enough to last the 2019-2020 summer before I go back to university.

Now that I work less, it means more time to use the creative side of my brain!

It has been a challenge so far, but I would rather this experience, as it is teaching me a lot about self-discipline and work ethic.

Years ago, not working meant I binge-watched TV shows, movies and YouTube videos.

Now, it is an opportunity to become a better person in all aspects of my personal life and career.

I know that I can live on a bare-minimum income because over the last 7 years, I had to. Earning triple that amount this year taught me that more money doesn’t always mean ‘more wealthy’.

Although I was putting over 50% of my income into savings, a portion was spent on critical medical appointments (understandably, an uncontrollable variable).

Another portion of that was going straight into a travel-credit-card which required debt payments.

Yet another portion would go into retail spending because I love fashion and my restraint was low on account of personal-family crises.

Over half of what I was “saving” went straight to expenses.

This was a hard pill for me to swallow once my contract was amended.

Since I conditioned myself to ‘survive on minimum wage’, it meant I had a long way to go before I could properly manage a higher income. (It probably sounds weird AF, but that’s the truth!)

Now, I can easily break down where my money is going.

Each month, I know:

  • All necessary bills are paid.
  • A portion of income goes into savings (for travel, etc).
  • A portion of income goes into investment (a new experiment).

This knowledge will teach me vigilance once my income increases again.

This gives me the confidence to move forward in my writing and e-commerce business.

Basically, I have the motivation to earn more because I am not relying on a conventional pay-check.

2. New sense of fulfilment.

When I was working 4 days a week, I was already building The Tiny Healer.

30 hours a week was committed to my job. On top of that, the usual commitments needed tending to: dinner, laundry, meal-prep (if any), social life.

Realistically, I could only churn out one article per fortnight or once a month at times.

At least once a month, I would read or listen to a podcast where that person would emphasise, “consistency matters”.

So I tried to write weekly. I wanted to be more consistent.

So, whenever I had spare time (after 5PM or on weekends), I consciously made the decision to draft as many articles as I could.

I also started reading more: before 9AM at work and after dinner at home.

As each week passed, my passion for writing increased. In turn, my productivity increased.

Now that my job requires two days a week, I have more time to do the same tasks but within a flexible range of time.

Doing things that I enjoy = more fulfilment.

I have more flexibility to read blog posts, books (I’m currently reading Rich Dad Poor Dad) and spending time with people that matter.

When I EMBRACE the opportunity I’ve been given, the fulfilment is tenfold. I can sit back in this chair, at this desk I’m writing at and feel true contentment in what I’m doing.

Side note: I’m not perfect. I’m still working on my mindset and habits.

Yes, I have moments of contentment and joy, but there are also many moments of self-doubt and the “Poor Dad Mindset” thinking I should just find a full-time job because ‘it would be easier’ or so most people say. Even myself until very recently.

I’ve known for years that it was possible to make a living out of one’s passion. However, the people that actually do, are few and far between compared to the masses. This was something I didn’t know.

It takes hard work, commitment and patience. I have the hard-work down, but commitment and patience is still a work in progress for me.

For the time being, I can be at peace knowing that at this point in my life, I am fulfilled.

3. Mastering The 3 C’s – Content, Creation, Connection.

Every time I’d read an article or see a graphic about content creation, the consensus was the same: content is king.

Starting The Tiny Healer, I wanted to foster a sense of connection with readers who perhaps had similar experiences or interests in mental health and self-development.

Over the last year, I found that posting once a month did not garner much connection or interest.

Now that I’m working two days a week, I can’t use the excuse that most of my time is spent at a job.

I can take charge of my writing, when I write and when I post.

The last few months in particular, I’ve been using my time to experiment with different ways to create content. Mainly, it has to do with writing and ways to present it differently using Photoshop and Canva.

I often think about:

  • What I’ve told myself in the past.
  • What conversations inspired or hurt me.
  • Who gave me the confidence to continue on with life.

Most importantly:

  • What is the message I want to convey every time I post? What value does this add to someone’s life?

This is a skill that needs a lot of work and harnessing, but in time, I know I’ll find a way that feels most natural.

We are all a work in progress.

Even if we reach one goal, we will soon grow restless and want to find something new to look forward to — that’s okay!

Embrace life’s changes.

Even though this new-found time has allowed me to explore my passion for creativity, my main focus is to write as I feel inspired and hopefully add value to those who happen to read my content.

At the end of the day, one life inspired is time well-spent.

What has helped you increase productivity? Was it having less time to work on your passion or did more time push you further?

4 Things to Consider When Looking for a Counsellor.

4 Things to Consider When Looking for a Counsellor.

Before I started my journey, I didn’t know where to begin. I only knew that I needed help. In this post, I’ll be listing several things to consider when looking for a counsellor. In case you or someone you love is seeking guidance, I hope this post will help.

Please note that when I mention counsellor, I’m referring to both a clinical psychologist and a diploma-certified counsellor in Australia.

1. Qualifications.

In my experience, knowing that the professional you’re going to be seeing has the qualifications to practice is a high priority.

Check their LinkedIn profile or even their business website if they have one. It could help with nerves once you know where the counsellor got their accreditation and organisations they’ve practiced at over the years.

You may be able to find client reviews too, which can be really helpful.

Websites and profiles can also clarify a list of industries and expertise the counsellor is passionate about including: working in hospitals, in a clinic helping people with eating disorders or in private-practice helping clients overcome depression, manage PTSD, family counselling and so forth.

Does their qualification and experience line up with what you’ve been struggling with? Do you think they could help you manage what you’re going through? If yes, that’s great! If you’re unsure, you can send an enquiry, call them or keep looking for other counsellors in the area.

2. Fees & affordability

Our mental health is important of course, but so is affordability.

Let’s not pretend this isn’t a topic to discuss. When I was looking for a professional to see, no one would mention or bring up the cost. At the time, I don’t think people around me knew or considered it to be a hindering factor.

Sometimes the counsellor’s website will have a fee section. In the instances where there is no mention, don’t be afraid to reach out either through email or phone to enquire. I know, enquiring can be daunting, but if you don’t ask, you will never know!

You may be able to find ball-park figures in Australian-based forums or on government/health/psychological websites.

Can appointments be factored in your budget? If not, are there ways to strategically shift your finances to put your mental health first and not break the bank? Would the Medicare rebate assist you at all?

I am a huge believer of compromise and doing my best to make the “impossible” work. So yes, I am biased in this way of thinking, but I do believe in the human ability to balance responsibilities for a healthier, happier life!

Once you have found a counsellor that is within your budget, you can look at other factors like where they’re located to prepare for a consultation.

3. Accessibility.

Is there a car park? Is the distance a hindering factor for your budget? Do they have wheelchair access? Can you take public transport if you don’t have a car? Is getting to-and-from the practice safe and sustainable long-term if sessions continued? Another thing to think about, is when their next available session is – if it is in 2 weeks, would that be viable? If it is in 3 months, will you need to consider other options before then?

Take all of these questions into consideration. If you have any other queries and can’t find the answer online, give the practice a call, send a text message (if their mobile number is provided) or email the counsellor directly for clarification.

Now that you know the counsellor, what their fees are and where they’re located, it’s time to attend your first consult!

4. Are you comfortable?

Now that you have made a decision to attend a consultation, are you comfortable sitting in the room? Do you feel heard? How does the dynamic make you feel when you talk?

Note: A 21 year old female was having her first consult with a male psychologist. During the consult, she explained how childhood abuse from her father affected her in adulthood. The psychologist listened and enquired whether him being a male psychologist might hinder progress and perhaps cause discomfort (considering the therapist-client relationship).

It is the responsibility of a mental health professional to have the best interests in mind for each person.

It is also important for us to be mindful of our own role in noticing how we feel during and after a counselling session and take action if things aren’t working.

Happiness can be found even in the darkest of times, if one only remembers to turn on the light.

Albus Dumbledore

A lot of people tend to talk about how important looking after our mental-health is, but not many people talk about the small steps it takes before you begin healing.

Here is a list of organisations that are here to help you:

  • healthengine – Find a psychologist in Australia
  • healthengine – Find a counsellor in Australia
  • blueknot helpline 1300 657 380 – complex trauma
  • beyondblue.org.au 1300 22 4636 – depression/anxiety awareness
  • kidshelpline.com.au 1800 55 1800 – private, confidential counselling
  • lifeline.org.au 13 11 14 – crisis support, suicide prevention
  • qlife.org.au 1800 184 527 – LGBTI support site
  • vvcs.gov.au 1800 011 046 – veteran, war-related support
  • ReachOut – youth mental health and community forums

If you have any questions or thoughts, feel free to visit the above organisations, email me or leave a comment below!

Image by Joshua Ness.

4 Ways To De-stress When Change Occurs.

4 Ways To De-stress When Change Occurs.

Life is a mixed bag. You never know what may happen next, no matter how much you plan ahead. I’ve never hated change, but I still struggle on occasion when something unexpected happens. I become irritable, moody and have unreasonable requests or expectations.

However, over the last 5 years, I’ve spent a lot of time learning and using self-help strategies and techniques. These days, people around me (including strangers) would comment on my calm nature, vibe or energy. Of course, we all experience stress when big changes occur. However, it is possible to manage our reaction to stressful changes with these 4 tips!

1. Read self-help books.

If you enjoy reading, I suggest using that time to dive in to the self-help section! Find a title that stands out to you, ask for recommendations from friends or Google what books have been popular and the most helpful.

A book I would recommend is “The Four Agreements” by Don Miguel Ruiz. This book is basically about four principles that could be immediately applied to your life. Having these in mind have been good reminders to keep me grounded, no matter what change occurs.

An alternative to books is to listen to podcasts or watch YouTube videos.

If you know someone personally who has gone through minor or major life changes, reach out to them and ask what helped them most!

Calming techniques are not one size fits all, it takes time and patience to find what will work for us.

2. Schedule the time to de-stress.

De-stressing allows us to be present. Since stress and change are inevitable occurrences, it’s best to find ways to alleviate stress that works for us. Finding techniques to manage fluctuating emotions can help keep us calm in our mind and body. What helps you de-stress when an unexpected change happens? Even those of us with introverted personality-types (like me) still need community-support to get through tough times.

Examples:

  • Talk to someone. Whether it’s online counselling, face-to-face talk therapy or catching up with a friend, reach out. Having someone listen can lighten the heaviness. Even if it’s just a little bit. It’s still worth it.
  • Be productive. I don’t mean be swamped with work and never feel your feelings. I mean use the time you have to write, build or invent something. This can give us a sense of purpose when things feel chaotic during life changes.
  • Get out of the house. Sometimes we don’t feel like doing anything when we’re overwhelmed with life changes. That’s when I try to fight it. Yes, there are definitely days/a week or so where I will “hibernate” and process my emotions alone. After that time, I push myself to see people, do activities or I ask my boyfriend to come with me for a drive around the neighbourhood.

Find what works for you. These strategies may vary depending on the circumstance, financial ability or simply the way you approach change. That is A-okay.

3. Be patient with yourself and others.

So, you’ve heard the news. The unexpected change is here. What else is there to do? Practice patience. Take it one day at a time. Sometimes it’s all we can do not to break down. And sometimes the break down comes anyway – no matter how hard we try. That’s more than okay – it’s absolutely normal! We all respond to stress differently.

You may find your emotions fluctuate. You’ll have good days and bad days. Or maybe you’ll be easily irritated. That’s okay. When unexpected changes or tragedies occur, we are not in our prime mindset to manage emotions steadily. Be patient with yourself and others.

4. Communicate, communicate, communicate.

If there’s something you don’t understand, ask questions. If someone sounds angry, wait until there’s a free moment and ask to clarify. If it is time to apologise, then apologise. Also remember, other people may not react the way you ‘predict’ or ‘want’. So be open, be patient and communicate clearly to avoid any misunderstandings.

With a good set of de-stressing techniques, actively building our resilience and having a support-group around us, it is possible to adapt to change. Getting lost in a book full of advice, scheduling time to de-stress and having a proactive attitude can help immensely whenever life throws a curve ball at us.

Take a slow, deep breath.

Know that you are loved.

Know that you can get through this.