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!

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!