Rich Dad Poor Dad | Lesson 3: Mind Your Own Business.

Rich Dad Poor Dad | Lesson 3: Mind Your Own Business.

Chapter Summary

In the previous chapter, I learned the importance of how money works. The third chapter focused on applying this knowledge in the real world. Furthermore, Rob emphasised interesting but often ignored advice: keep your day job and mind your business.

Robert explained the difference between a profession and one’s business. A profession is where you work for someone else and make them rich and a business is where you make the money work for you. Income that is generated with little or no effort AKA your assets.

Financial struggle is often the result of people working all their lives for someone else.

R. Kiyosaki

Not everyone can start a business. However, everyone can begin learning financial intelligence to make money work for them.

Robert reiterates once again the problem with focusing on our income column.

“I need a raise.”

“I’m going to work overtime.”

“Soon, I’ll start training so I can get a better job.”

These are common phrases Rob tends to hear. This sort of action can make you financially secure if you are investing in income-generating assets.

Some never ‘take the risk’ for fear of losing it all, so the pay check goes into a long-term savings account or to a broker who takes his fee after all is said and done.

Net worth.

Robert goes on to mention net worth. He cringes whenever people mention net worth because any assets that are sold, are taxed for any gains. Therefore, the government takes its share and in the end, their ‘net worth’ is worth less than one may think.

So, what’s the solution?

Keep expenses low, reduce liabilities and diligently build a base of solid assets.

According to Rob, real assets are as follows:

  • A business that does not require your presence
  • Stocks
  • Bonds
  • Royalties from intellectual property such as music, scripts and patents
  • Anything else that has value, produces income, appreciates and has a ready market

If you would like to read more, you can purchase the book here.

By growing your asset column, you can use that cashflow to pay for your expenses.

Instead of slaving away at a job all week and wait to get paid, why not have automatic cash-flow from income-generating assets?

What’s your profession? What’s your business? The two are not necessarily the same.

Remember the infamous phrase?

Make your money work for you.

Personal Reflections

This chapter was quite short compared to the last two. However, it was straight to the point which I did appreciate.

Something I have started to notice is that Rob often criticises schools for teaching children how to contribute to society and not how to increase their asset column.

I do agree with Rob’s statements to an extent, however, I have to say that having basic skills in literacy and maths is not a crime. Neither is a child who learns and enjoys art, history or drama.

On the other hand, it would be a great addition to education if new generations learned from our mistakes and focused on assets instead of liabilities.

It has occurred to me now that not many people find interest in assets. Some truly enjoy going to a job, knowing what to expect and getting paid for an honest days work.

I don’t have a problem with that. I suppose this book and the ideas that Robert teaches are for those who crave freedom from ‘the desk’ and those who want to do what their really passionate about.

If you want financial freedom then follow the points in this book — I’m sure you’ll find a few valuable useful lessons!

As I continue reading, I don’t really see myself starting a business (unless it is within the mental health sector) in which case, cannot be a presence-free business.

Since I’ve begun investing in Raiz, I do see myself investing into stocks and later in life, investing into start-ups.

Today, I actually signed up for another income stream: Fiverr. As I already write for this blog, I figured why not write for websites, individuals and organisations who are like-minded?

Final Notes

My current action plan is – starting from ‘zero’ – to build my asset column. To generate more income, I have begun driving for Uber Eats, invested into Raiz (stocks) and started offering my services as a mental health writer to combine my passion for mental health with writing!

The hype within me is beginning to die down but I am still curious as ever to read more about Robert’s life, case studies and his financial accomplishments.

I’ve always been eager to learn, improve or master a skill, thought or idea. Reading this book has been one of the best decisions in my life so far.

On to the next lesson!

Read: Rich Dad Poor Dad – Increase your financial intelligence!

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Don’t Get Spooked By Your Emotions.

Don’t Get Spooked By Your Emotions.

Happy halloween!

Over the next few weeks, I am going to have a new theme each week based on the international holiday or awareness campaign.

Today, I wanted to discuss how we can take charge of our emotional health.

Throughout my life, people have asked how I’ve gone through the things I have.

Well, now you’ll know! I share some thoughts and strategies on acknowledging our emotions and using them for good.

If you’ve been on a journey to heal from trauma, you are not alone.

Taking charge of our emotional state means we become responsible for our own happiness. It may seem daunting, but I promise, it is so worth it!

Acknowledge the good and the bad.

Like most things, there must be balance. Remembering the good and bad times help us practice cognitive flexibility: the ability to switch between thinking about two different concepts, and to think about multiple concepts simultaneously.

No matter what we go through, we can acknowledge the pain yet remain motivated, inspired and hopeful.

When circumstances change abruptly, you’re likely to feel numb, rage, sadness or even despair. We must also remember that abrupt, positive changes can happen too!

While at my psychologist appointment, I mentioned a situation that frustrated me, but I also mentioned the positive side too. Good and bad exist simultaneously.

Train your mind to see both.

Healing isn’t linear and life isn’t always predictable, but having the ability to acknowledge and accept the good times with the bad can give us hope for the future!

Notice how people (characters in your favourite movies/shows), colleagues, friends and family interact.

Have you ever people-watched? When we’re having a coffee at our favourite cafe, at a restaurant with family or whilst shopping – we’ve all done this to an extent.

Seeing how others express their emotion whether it is joy or pain, can help us navigate our own.

Do you know someone who you gravitate towards? The person who seems happy? Or someone who always seems to be encouraging? Or someone who is matter-of-fact and productive?

Ask how they came to be the way they are. Do they listen to podcasts? Do they surround themselves with people full of wisdom?

Since beginning my path in mental health and learning more every year, the best way was to surround myself with people on the same or similar journey. People who have surpassed “growing pains” or starting their career. People who are more experienced than I am. I study their behaviour by watching their interviews, reading their articles and looking at summaries of research.

You don’t have to be a sociologist to notice behaviour. We already do it, subconsciously.

If you want to learn how to navigate emotions with intent, empathy and understanding, look around you.

There are lessons everywhere.

Otherwise, there are many self-help books out there like this one. Even discussing your curiosity with friends or family who are like-minded can spark a whole lot of learning for everyone!

Don’t let the darkness scare you.

For me, negative thoughts come and go. It can depend on my current circumstances, a bad day or a heavy conversation. When I know I will or have experienced something hurtful, overwhelming or even harmful, I expect what comes next: the darkness.

Life is a mixed bag.

We grieve for lost loved ones, we navigate illness, we may end up in a car accident or we may lose a good job.

No matter what it is, expect what comes next. Whether it is pain, hard-work, healthier habits or editing an old resume – step into the unknown.

You will be okay.

If you’re afraid of the unknown – that’s okay! We all are. It is part of the human condition.

We can plan until our heart’s content but that still doesn’t guarantee what our future will look like.

Regardless, organising ourselves for the worst-case scenario means we can think three steps ahead. Not many people do this. Do what others aren’t!

Remember that when life becomes unbearable next time, you have a track record of STRENGTH to carry you through.

There is always hope, as long as you believe in it!

Learn through books, mental health magazines, videos, podcasts or online communities.

Often, I found it difficult to talk about my mental struggles with those around me. There were a few people but sometimes I was so overwhelmed – I couldn’t possibly put this pain on another (a false belief I told myself back then). I know now, people are willing to listen.

I found comfort in reading, writing and creating art to express myself.

To this day, this is a huge cathartic process for me. I’m forever grateful for such an outlet.

I’ve read multiple books on mental health, self-improvement, emotional intelligence and of course, lots of non-fiction! You can learn all you want but remember to enjoy yourself too!

Eventually, I found videos on self-development and podcasts on positivity and attitude.

It was only a matter of time before my tangible self-help tools became digital — welcome to the age of Instagram, YouTube, Spotify, Snapchat and Tumblr!

These days, there are thousands of online forums or group pages tackling difficult life experiences including mental illness, domestic violence, finances, decluttering and organisation.

If there is something you would like to learn more about, I bet that it is out there!

If it isn’t out there yet — start a group, an informational blog or Facebook page!

Talk to someone.

I mention this often in my blog posts. Not only did this help me through my teenage years and continues in adulthood, but it taught me that I don’t have to be afraid of what I’m feeling.

There is no shame in being honest about how you feel!

Find someone in your friendship group or a mental health professional that you can trust.

You can learn a thing or two just by starting a conversation.

It can be really comforting when you’re able to open up to someone and feel heard.

Receiving advice or even encouragement from loved ones can go a long way too. Don’t close yourself off.

I know it can feel unbearable to express ourselves – especially when we’re really hurting – but it is so important that we do.

I have included a list of organisations below that are here to help if you are in need.

Have realistic expectations.

You know yourself the best. Once you start delving into the realm of self-development, it can be challenging to navigate when roadblocks come up. Set realistic expectations for yourself.

If you’re reading a book, don’t force yourself to stay up late just to finish it. Take your time, digest the information and get enough sleep.

If you noticed a certain behavioural trait of yours (e.g. talking over someone else), don’t expect it to go away overnight.

Change takes time.

Try to live mindfully: notice how you feel with small changes.

Remember that everyone makes mistakes.

Everyone has had moments where they’ve said the wrong thing, intentionally or unintentionally.

It’s not about being perfect. It’s about becoming aware of your emotions and being aware of how you fit into this world.

I hope you found these tips helpful!

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Image by Jack.

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!

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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?