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Today I am going to share with you 5 personal finance tips that really changed my life, and could do the same for you!
There are tons of financial books out there claiming to be the best, but almost all of them are either too complex to follow, or just don’t make any sense at all.
I had read so many personal finance books before coming across this one very book that finally spoke to me!
Some were extremely technical, and couldn’t be understood by most financial students, let alone the average person on the street. And others would give you advice which was total and utter nonsense.
5 Outstanding Personal Finance Tips
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I think Robert Kiyosaki was the first financial author that I actually understood 100%, and really enjoyed from the beginning to the end.
Yes, there are a few who don’t quite agree with him or aren’t his biggest fans, and that’s perfectly fine.
But for me, all of his content really did hit home, as he seemed to have made financial education so easy and simple that literally anyone can follow his advice!
The first book of his I ever came across was his original work, called Rich Dad Poor Dad.
I remember reading it as a 20 year old, and it really changed the way I saw money and personal finance completely!
At that age, I had this dream of becoming a corporate worker, and eventually being CEO of some big financial company.
Don’t ask me why, but that was my dream!
But this book, Rich Dad Poor Dad, just made so much sense! Robert’s basic way of getting a point across is pure genius, and I was immediately hooked.
Thereafter, I went on to read the rest of his published books and have ever since followed him on his blog and various social media accounts.
I have learn’t many things from Robert Kiyosaki, but today I have summed up some of the most important lessons he has taught me!
So below are 5 of the most important personal finance tips I have taken from Mr Kiyosaki over the years of reading his books.
I am sure many of you will agree with most of these!
They are simple, make sense and should be taught at every single school on Earth!
Lesson #1: Rich People Don’t Work For Money
I don’t mean rich people don’t work at all, if that’s what you are thinking.
No, what the lesson here talks about is that rich people seem to create systems and businesses where they get the money to work for them.
Making investments, starting companies etc where they don’t have to earn a monthly paycheck.
Working month to month and receiving a wage at the end of that month is something which Rich Dad Poor Dad advises against. It’s not the way to financial freedom.
Lesson #2: Buy Assets, Not Liabilities
Assets are incoming producing products or things. A house in which you reside, a car which you drive or a fancy television is NOT an asset. These fall into the liabilities column, unfortunately.
Robert Kiyosaki hits hard on this point in all of his books.
People need to know the difference between assets and liabilities, and aim to buy assets.
Aquiring assets can lead to financial security and eventually financial freedom.
Know the difference, and focus on assets!
Lesson #3: Learn & Teach Financial Literacy
Once you have a bit of income coming your way, you got to make sure you are financially literate. By this, he means that we need to know what to do with money once we start making it.
Schools really just teach us how to make money, but rarely give us any good advice on what to do with it in order to make sure it grows and stays away from others.
It’s important to understand the concept of money, and how it can work for your benefit.
Lesson #4: Don’t Rely On A Job For Financial Security
One thing Robert says is “financial struggle is often directly the result of people working all their life for someone else. Many people will have nothing at the end of their working days.”
Many people don’t like statements like these, but they are very true!
Obviously we all have to start somewhere, and working a job is the normal route. But our goal should be to get out of that job and take control of our financial future by ourselves.
Spending money on income-generating assets and businesses should be a priority.
Rich Dad always talks about not relying on a job for financial security.
And I TOTALLY agree with him!
Lesson #5: Work To Learn, Don’t Work For Money
Robert talks a lot about not taking dead end jobs just for the money.
He emphasises on taking jobs and going into work where you can continue learning valuable skills.
Skills like the ability to sell, to communicate, to manage etc. These are skills which set you apart when it comes to creating your own business.
Even Warren Buffet, the world’s biggest investor, said that learning to sell is the most important factor to his success!
If we want to achieve a certain level of financial freedom, we need to make sure we stay away from all the traps society seems to easily catch most people with!
Have the goal of moving from employee to business owner.
Have a plan.
And work hard toward accomplishing whatever your plan is!
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