“Retire Young Retire Rich” is a blueprint on how to mentally prepare for your journey to becoming rich. It is not so much an in-depth step by step guide on how to become rich, as much as it is a mental exercise on how to expand your way of thinking. If you do not expand your context then you will not be able to handle the content. The author, Robert Kiyosaki, takes a deep dive into both of these words throughout the book. He also shares some very personal stories of his struggles on his way to becoming rich. I really connected to the Author throughout the book because I too am on a journey to becoming rich. I already have everything I want in life, so for me, it is more a challenge than a “want” to be rich. So my context is different from the authors, but I also understand why he was the way he was. He was made to be an entrepreneur from a young age. For him, it is building a business or starve. I know that I want a little more security, so my gains may not be as great as his. But I also know that anything I achieve in the business world is on top of my successful family and military career. So it will be an amazing journey for me and Kris. With that, let’s dive into my 5 takeaways.
1) In the real world 5% of the population is rich because the other 95% do not take action. I can understand this statement. In order to be rich, you need to work for yourself, for free, and on your off time. Most people will never do this.
2) After you are financially independent and you retire, take a year off. He took a year off and completely dropped all activities he was working on. During this time he made major strides in his self-awareness and awareness of nature. I plan on being financially independent at age 48, and now I am considering taking a year off as well.
3) Using debt to buy assets is a faster way to retire than saving. Debt, of course, is a double-edged sword, but if wielded correctly, you can use it to fund your retirement. It is faster to borrow a million dollars than to save a million dollars.
4) “In the broad definition of the word, the word leverage simply means the ability to do more with less”. Leverage can be anything that helps you get ahead in life. My wife and I use the leverage of owning a nice, big house to rent out rooms. That extra $1600 a month has propelled us to the fast lane in savings and investing. Next, we will use leverage to place a manufactured home on our property to earn even more rental income.
5)” The worst advice you can give your child is to go to school in order to get a high paying job”. I took this one to heart. For so many years, I believed this was the best way to raise my child. I was teaching him to be a good employee and work hard for earned income. The better way is to teach him how to make money out of thin air. How to create business income. With that income, he can buy assets that make passive income. It is truly a different way of thinking.
This book definitely expanded my thoughts to envision a life with no financial worries. Also, he talks about a world of no risk and how to create money from thin air. These ideas are hard to imagine, but I am starting to see that this world exists. In order to get to this world, you have to try, and you will make mistakes, however, you grow. I want to go to this new world, and I want to take my children to this new world as well.
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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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