If you were stop working, image this to yourself.
How long can you survive on your remaining savings?
what I just asked you was a definition of wealth.
Here is a man named Robert Kiyosaki,
an American investor, businessman,
author, motivational speaker and financial commentator
who became well-known in the recent years
who has an estimated net worth of 80 million dollars!
Wanna know something interesting?
He wasn’t raised in a wealthy background.
In fact his family was like most people
who work but didn’t have the best financial education
and often times struggled with money.
So then how did Robert become rich today?
Let’s take a look as he explains in one of his bestsellers called
Rich Dad Poor Dad
Robert Kiyosaki was born in Hilo Hawaii in April 1947
in 1957 at age nine years old,
little Robert was attending the same public school
where the rich people sent their children,
for his town had lots of doctors, business owners, and bankers
Robert saw that the rich kids would separate themselves from him,
for his family wasn’t able to afford
the newest collections of toys and bikes like them.
So one day Robert asked his father
who had a PhD and completed multiple universities with excellent degrees,
Unfortunately, his dad didn’t know the right answer
because he was a rich himself,
so he responded with,
“Stay in school, get good grades so you could find a safe and secured job.”
His real dad is what he’ll be referred as poor dad.
He wasn’t poor at that time, in fact, he was making a lot of money,
but in the end, this man’s financial life takes a turn for the worse.
Now little Robert has a friend named Mike
and which Mike’s father would be referred as rich dad,
who started mentoring Robert and his son Mike about how to really become rich.
At this point in time, rich dad wasn’t really rich yet
but soon became to be one of the wealthiest men in Hawaii.
So then, what did rich dad teach Robert?
Rich dad poured a strong financial foundation into these kids minds
of many important principles.
To start off, the first lesson you need to know
is you must know the difference between an asset and a liability
and that you need to buy assets.
If you want to be rich
this is all you really need to know and understand the most!
You see, the rich acquire assets
and the poor and middle class acquire liabilities
but sometimes they think they are assets.
The primary cause of financial struggle is simply not knowing
the difference between an asset and a liability.
You don’t even know what an asset or liability is don’t you?
An asset is something that puts money in my pocket.
A liability is something that takes money out of my pocket.
let’s try cash flow pattern of a normal individual.
收入 支出 资产 负债
This person right here earns his income from a job
and as expenses are things like food, clothes, entertainment, and transportation.
他的的开销包括食物 衣服 娱乐和交通
Unfortunately he doesn’t have assets
but sure does have liabilities that constantly takes money out of his pocket
because things like mortgages, taxes credit cards, loans and believe it or not the house.
比如抵押 税务 信用卡 贷款甚至房子
Now let’s take a look at
how the cash flow pattern really work for the rich
Instead of looking to earn more money from their normal job
as the only source of income,
they buy and own assets that brings money into their pockets
as a form of passive income.
Passive income is something that earns money that doesn’t require you to trade your time for it,
so in other words you would be earning money even as you’re sleeping.
Examples of assets are businesses that doesn’t require your presence:
stocks bonds, mutual funds, income generating real estate,
股票 债券 共同基金 产生收入的房地产
royalties, notes, and anything else that has value that produces income.
As mentioned before, poor dad was making quite a lot of money from his job
but his expenses seemed to always keep up with his income,
never allowing him to invest in assets.
As a result his liabilities such as his mortgages and credit card debts
grew greater over time
and this is the fault of having income equals expense
and assets is less than liabilities
and sadly this is what drove poor dad into debt
even after he passed away.
On the other hand,
rich dad’s personal financial statement reflects the result of a life
dedicated to investing and minimizing liabilities
so he has income that is greater than the expense
because of assets is greater than liabilities.
This is practically why the rich are getting richer!
Their assets generate more than enough income to cover expenses
with the balance reinvested into the asset column.
The asset column continues to grow and therefore the income grows with it.
You see, both dads worked hard,
but they have opposing attitudes and thoughts.
One dad recommended study hard
so you can find a good company to work for.
The other recommended study hard
so you can find a good company to buy.
One dad said the reason I’m not rich is because I have kids.
The other said the reason I must be rich is because I have you kids.
富爸爸说 我必须要变富有 因为我要养你们
One said when it comes to money play it safe and don’t take risk.
The other said learn to manage your risk.
One said I can’t afford that.
The other said how can I afford that?
Although both men had tremendous respect for education and learning
they disagreed on what they thought was important to learn.
Robert learned from rich dad that
the truth about the general population,
their lives are run forever by two emotions, fear and greed,
that keeps you stuck in a pattern of get up, go to work, pay bill. Get up, go to work, and pay bills.
因此陷入起床 工作 付账的无限循环
Fear has them in this trap of working, earning money, working, earning money
and hoping fear will go away of not having money.
Instead of confronting the fear they react emotionally instead of using their heads.
The other emotion which is desire, some call it greed,
is a second reason why people also work for money.
They desire money for the joy that they think it could buy.
But the joy that the money brings is often short-lived
and soon needs more money for more joy,
more pleasure, more comfort, and more security.
You see that same fear and desire is
what makes a lot of people be so fanatical
about going to school for a better chance of a high paying job,
but don’t be discouraged an education and a job are important,
but it won’t exactly handle that fear.
To handle that fear,
you need to learn the power of money, not be afraid of it.
Unfortunately most schools don’t teach about this
and if you don’t learn it, you’ll become a slave to money.
Ignorance of money can cause so much greed and so much fear that
can lead you into life’s biggest trap of constantly working.
Rich Dad said
Examples of emotional thinking are like I need to get another job!
I deserve a raise! I want this job because it is secured!
Instead of clearly thinking like is there something I’m missing here?
This is our reality for most people your profession is your income.
The rich, your assets is your income.
Apply these lessons to your life
for if I were to ask you about the definition of your wealth
if you would stop working today, how long can you survive?
You might laugh at me and say
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If you were stop working, image this to yourself.