The RICH DAD POOR DAD Secret: This Year Learn The Art of Inventing Money & Begin Building Wealth Everywhere with Robert Kiyosaki's KnowHow | Part 4

How to be Rich - The Rich Invent Money

Learnings from the book Rich Dad Poor Dad. A great foundation book for beginning to improve your financial intelligence

Self-doubt is a part of human personality. But it need not be permanent. Man can learn to overcome his self-doubt. This can happen only if he is equipped with the Right Knowledge and his Confidence to persist and see things through. This can only come through practice. To start with, one needs to practice being bold in small things. This way the body and mind will be programmed to behave with boldness.

The learning in this chapter is about getting educated. But it has to be an education of a different kind. It's not academic knowledge full of destination and formulas. It is about knowledge that will make you do things and help you become rich.

Sit with a writing pad and pen. You will require to take notes as you read the learnings.

Let's Begin...

The RICH DAD POOR DAD Secret: This Year Learn The Art of Inventing Money & Begin Building Wealth Everywhere with Robert Kiyosaki's KnowHow

LEARNINGS FROM: THE RICH INVENT MONEY

1. The one thing that holds us back is some degree of self-doubt. 

How do we overcome this doubt? 

The best way is to face it. This can be done by asking questions to self - 

What is it that is making me doubt what I want to do? 

Is this doubt reasonable? 

How can I remove this doubt? 

What preparation do I need to do so that I can go ahead to do what I want to achieve without any doubt?

The Greatest Distractors of Personal Genius are SELF DOUBT and FEAR.

Remember, in the real world it's not the SMART that gets ahead but the BOLD. So learn to be BOLD, not SMART.

2. This is the era of information. The person who has the most timely information owns the wealth. The problem is that the information flies all around the world at the speed of light.

3. Sticking to Old Ideas is the biggest Liability of Hard Working individuals.

4. When you are facing a financial crunch, the questions you ask will decide if you can come out of this crunch. The questions like -

A] Now what can I do?

B] how many different financial options can I come out with to get out of this rut?

C] Can I create New and Various Financial Options to earn more money?

D] Financial Intelligence is simply having more options. If the opportunities aren't coming my way, what else can I do to improve my financial position?

5. This is what is FINANCIAL INTELLIGENCE -- It is not much about what happens but how many different financial solutions can you think of to turn a lemon into millions. It is how creative you are in solving financial problems.

6. Each person can be an individual who creates his own luck. You take whatever happens and make it better. 

7. Know how to use LUCK - Labour Under Correct Knowledge!

8. Remember, just like money Luck can also be created.

9. The Poor and Middle Class work for Money, the Rich Make Money.

10. The more real you think Money is the Harder you will work for it. If you can grasp the idea that money is not real, you will grow richer faster.

11. The single most powerful ASSET we all have is our MIND.

12. An Untrained Mind can create extreme poverty that lasts lifetimes by teaching it to their coming generation.

13. In Information Age money is increasing exponentially. A few individuals are getting ridiculously rich from nothing but an idea or an agreement.

14. Financial Intelligence is made up of 4 main technical skills --

a} Financial Literacy

b} Investment Strategies

c} The Market Supply

d} The Law

15. The problem with SECURE INVESTMENT is that they are often sanitized. That is, they are made so safe that the gains are less.

16. The Greater your Financial Intelligence the easier it is to tell whether a deal is good or bad.

17. When it comes to Finance, what is Gambling? -- If you are just throwing money into a deal and praying that is Gambling! If you really know what you are doing then that is not gambling.

18. When someone says, "...you can't do that..." What they really mean is, "...I can't do that...so you also can't do it"

19. Great opportunities are not seen by the eyes, they are seen by the mind.

20. Most people never get wealthy simply because they are not trained financially to recognize opportunities right in front of them.

21. Always remember to have fun. This is only a GAME. Sometimes you WIN sometimes you LEARN, which poor and middle-class call FAIL.

22. We learn by making mistakes.

23. People who avoid failure also avoid success.

24. There are two kinds of INVESTORS --

A> Most common type are people who buy a packaged investment like Mutual Fund, FD, stock etc.

B> Second type are investors who create Investments. These are the people who ensembles the deal.

If you want to be the second type of Investor then you need to develop 3 main skills. These skills are in addition to those required to become financially intelligent -

a) How to find an opportunity that everyone has missed.

b) How to Raise Money. Investing is not buying, it's more a case of knowing.

c) How to organize Smart People. When you need advice make sure you choose your advisor wisely.

25. What you KNOW is your Greatest WEALTH, what you DON'T KNOW is your Greatest RISK!

In Conclusion

These were some of the learnings for the chapter "The Rich Invent Money".

It may hurt the ego of a few people, but if you want to be rich sometimes you need to stop your ego from interfering in the process of becoming rich. 

One thing you need to focus on is - hire people or be in the company of people more intelligent than you. Get out of your comfort zone. You need not to feel depressed because someone is more intelligent than you. Just join them. Be a part of that group, learn to capitalize on their knowledge.

Remember, an intelligent individual builds on his knowledge using whatever resources he can lay his hands on. This way he increases his power of creating wealth.

Have You Read the Previous 3 Parts?

Read the 1st Part Here: ACTIONABLE - The Rich Don't Work for Money

Read the 2nd Part Here: ACTIONABLE- Why Teach Financial Literacy?

Read the 3rd Part Here: LEARNINGS - Mind Your Own Business.

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