“Rich Dad’s Guide to Investing” is the third book in Robert Kiyosaki’s Rich Dad Series, after “Rich Dad Poor Dad” and “Rich Dad’s Cashflow Quadrant”. More than the books before it, this book completely blew my mind. His concepts on business, income, cash flow, and becoming rich are over the top, in a good way. He left my mind completely blown. I already understood that rich people don’t buy liabilities. They buy assets that produce cashflow, and then they buy liabilities with that cash flow. Basically, rich people buy stocks and real estate, and when those investments pay them, they then buy cars and boats. However, he completed blew my mind when he stated that the ultimate goal is to create assets, not buy them. Those assets being businesses. With that, let’s get into my 5 takeaways:
1) Only 3 out of 100 people in America are Rich. It seems completely ridiculous, however, I slowly know this to be true. It is not lack of money that makes people poor, it is a poor mindset.
2) “The more security you need, the more scarcity there is in your life”. This means that the more you live in fear, the more fearful you will need to be. If you are scared to learn new skills, then you will put yourself in a position that you will need new skills. Living a life of fear is a self-fulfilling prophecy.
3) “Because the idea that it takes money to make money is one of the worst ideas that there is, especially if a person wants more money”. The author is adamant that being able to create wealth is a mental attritubute. Espeically in today’s internet age or information age. Do not let lack of money stop you from obtaining great wealth.
4) “Investing is a plan- often a dull, boring, and almost mechanical process of getting rich” In order to get rich, you need a very standardized plan. No get-rich-quick schemes or games. Invest regularly, manage your expenses, and always look for new investment opportunities.
5) Convert ordinary earned income into portfolio income and passive income. When you work a job or receive money from a business, first invest in assets. Those assets will in turn pay you dividends and rental income. That secondary income is what you use to live your life. The more assets that you have that pay you money, the less you will have to work.
This book was magically. It truly changed my whole thought process of what I want to do after the Marine Corps. Before, I believed that I wanted to join the civilian workforce, but now I am seriously considering opening a business. To create an asset that buy more assets is now a dream of mine. If you have big dreams of wealth, this book is for you!
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Disclosure: I am not a financial advisor or money manager, and any knowledge is given as guidance and not direct actionable investment advice. Please research any investment vehicles that are being considered. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.
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