Reading Review: Rich Dad Poor Dad – Robert T. Kiyosaki
Posted on Feb 28th, 2023
This months book was geared towards adjusting my habits with monetary plans into a new, healthier, direction. I read it for the first time last year, and it was part of what adjusted my mindset behind what my skills are worth. Rich Dad Poor Dad doesn’t offer the information in the usual way; instead of sticking to ‘reducing expenses,’ sure it’s important in today’s day and age, it focuses on making your money ‘work for you.’
The main focus of the book is to adjust ones mindset about finance. For lack of a nicer way to point it out, the focus is on a simple difference between what the rich do with their money, and what the poor do. That isn’t to class anyone as poor, or rich, mind you – it just puts it into prespective in an understandable way. Instead of focusing on ‘what you can afford‘ it helps describe the idea behind working out ‘how you can afford it.’
For example it shared the idea that everyone lives with, ‘I will never be rich,’ when you live with that every day you will make it it stay for the rest of your life. It helped Mr Kiyosaki as a 9 year old to learn how to use money in a better way: make your money work for you.
There are hundreds of ways you can do this. It could be investing in whatever you need to make something that can earn you more money, like a laptop that can handle the hardware needs of your game development project, or perhaps equipment needed to create bars of soap to sell. Your investment can be used to make things which bring more income.
With that being mentioned, you can invest the extra income you have monthly in a manner that’s easy for you to access. Consider your bank account as an adult is primarily a Cheque account with fees every month, you should find a second Savings account which grows with interest with no fees. Some offer instant access, but some share it will take up to a month to draw money out of them. The point is to save as an investment, that is save your money in a way that grows. The different banks offer different interest rates, but find one that will fit your ease of access, like my bank offers around 6% per annum with instant access on a Savings alongside a Cheque. The money I save month to month can go into that account, I can use it in emergencies, but it will bring passive income.
The other thing that is obvious from mentioning investments, find what fits best for your investments for your future. In South Africa you can have a Retirement Annuity (RA) which you contribute into monthly, at the end of a tax year the contributed amount gets paid back to you. Sure, you can use it to go on a holiday, buy something big, whatever you feel like; just consider how it can grow first. Open another investment which can pay you monthly, such as a dividend stock, or a Real Estate Investment Trust (REIT). It wont give you money in an instant, but it brings more income. Yes, you will manage your tax payment for the passive income you receive. It only needs a small amount of patience. Then at tax year end your RA’s payment back to you will hopefully cover the additional taxes if you weren’t precise with the tax you’ve already paid.
There are hundreds of ways you can earn passive income, you can use these methods to pay for holidays, buy something big, and so on. Just look at money in a slightly different way, make it work for you instead of wasting it.
With that being shared, just go and read Rich Dad, Poor Dad. It is a wonderful way to take a look at money in a somewhat different way. Many people shy away from it because they figure it takes money to start out. Sure, it does in some cases, but there are always options.
You own an ancient third hand computer? You can still create a computer game, you can still use it to write your own novel, you can still use it to run a website where you sell your crocheted little animals.
For the technical suggestions, to keep my mind comfy I have to stay active. Sure, it comes, and goes, between the many acts on a regular basis, it’s just great since in the future they will grow into sourses of passive income for me for starters.
- My YouTube channel: https://www.youtube.com/@edg3_za – a Minecraft based relaxing method which might lead to more income when I get more subscribers
- My first novel: Accidental Distances, it feels grand to have my own novel over 100k words; it will release when I finish reparing my spelling and grammar enough
- My game’s name will be decided eventually, as of now it’s rebuilding the ancient classic I made and released on the Windows Phone store, SokoBomber, in a much better way. If my game ideas grow enough, again, and grow their own interest, I could publish them on the stores.
Sure, these 3 items use my laptop. It helps me keep my mind calm by always having a different project to move to. Swapping between project after I get home from work has kept my evenings relaxed, sure it slows them down a touch at time, but it will lead to passive income for me one day. Rich Dad Poor Dad can help you swap to the better mindset that money can work for you; it will help you understand the frivoulous things you waste money on, and build a better income, in a different light.