YAISHWARYAJ: {Awareness} Rich Dad, Poor Dad || Book Review

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Book Review: Rich Dad, Poor Dad - Continue..

Once Mughal Emperor Akbar asked his advisor, Beerbal: Is faith more powerful or a saint (peer) is more powerful? Beerbal replied: Faith is more powerful than anything else. Akbar asked for the proof. Beerbal told him that he would respond to him in due course of time.

Beerbal got a dead donkey buried at one place and constructed a shrine over it. Beerbal also placed two people as guardian of shrine who kept on sitting at shrine and worshiping like it was a big saint's monument. People started flocking and seeing that a new shrine is in town, started praying, giving alms etc. One day, Queen got news that there is a shrine where if you ask something, you are granted your prayer. She asked the king Akbar to accompany him to the shrine. The King asked Beerbal to take them to shrine. After a few weeks, Beerbal took them to shrine and there were hundreds of people, asking for all sorts of things from shrine and the saint. At that time Beerbal told Akbar: Here you go with the proof. If people believe a donkey to be a saint, that donkey will become a saint. Beerbal got the dead donkey out of shrine to prove his point. This is a fable / a tale to depict that power of believes is above all.

If you believe you can or you believe you can't, you are right!

If people believe they can change their cash flow quadrant, they can, if they believe they cannot change their cash flow quadrant, they cannot!

Hope you would have read first three steps (if not, read the below email)..

Here are last four steps:

4. DECIDE WHAT KIND OF INVESTOR YOU WANT TO BE?

There are three types of investors: One who seeks problems, one who seeks answers and the last ones who know 'nothing'. Which kind of investor are you?

Do you want to be one who knows nothing? Do you have questions like: What do you recommend I invest in? Do you think I should buy real estate? Which mutual funds are good? Most of employees and self employed people fall in this category of investors i.e. who seek answers.

Now, the fast track investors: They seek problems. They look for problems caused by those who are in financial trouble. Lesson: Start small and learn to solve problems. Skills related to Business and investing need to be learnt.

Action points: Attend financial sessions and seminars to learn more. Meet with business brokers to see what kind of businesses are for sale in your area. Attend business opportunity conventions. Subscribe to business news papers and magazines. Learn about business and more important; try to act…..

5. SEEK MENTORS

Action points: Seek mentors. WHO YOU SPEND YOUR TIME WITH IS YOUR FUTURE. Learn from successful business persons.

a. Write down names of six people you spend most of your time (all your family members count as one). Take a look into those names. That is your future…… Six people with whom you spend the most time with are your future…..
b. Now, write down, from which quadrant are they earning their income? E, B, S or I?
c. Last, what kind of investors are those people?
d. Think!

6. MAKE DISAPPOINTMENT YOUR STRENGTH

EXPECT TO BE DISAPPOINTED. This means: Prepare yourself for unexpected results as well. Prepare yourself emotionally so that you can remain calm and cool in all type of situations.

Action points: Make mistakes. Put little money aside monthly and finally, TAKE ACTION. Just do it.

7. POWER OF FAITH

Words you speak are mirror of yourself. Listen to your own language. 'I am not good at remembering names'. 'I can't do this'. 'I am always' like this'.

BE AWARE OF THE WORDS YOU SPEAK. Words are reflection of your thoughts. If you say: My spouse is never going to understand this or my boss is never going to understand this, in fact, you are using your spouse or your boss as an excuse. Actually, you need better communication skills……

Action point: Believe in yourself and start today….

---------- Forwarded message ----------

Book Review: Rich Dad, Poor Dad

Once, there was a man who kept on praying: Oh God, please help me to win lottery this time. I beg you, please help me win this time. Finally, God listened to him and sent an angel.

The angel told the man:

God is willing to help you, you will win lottery. However, there is one condition.

The man asks the angel: What is that condition? I will fulfil all the conditions.

Angel says:
Please, buy the ticket of the lottery first!

'PEOPLE WANTS TO GO TO HEAVEN BUT VERY FEW WANT TO BUY A TICKET' (Anonymus).

'The simplest way to double your money is to take out a hundred rupee note, stretch it fully, pick it from one side and put that side on the other side of the note. Now its 'double'. Put it back in your pocked, folded, doubled….'

The book 'Rich Dad, Poor Dad' by Robert Kiyosaki does not offer any quick fix solution. It provides with a seven step guide towards changing cash flow quadrant i.e. from moving towards better cash flows (out of which you will find three described below today)

1. MIND YOUR OWN BUSINESS

First step: Where Am I NOW?; Where are we standing on our financial front?
Fill out your own personal financial statement.

Second step: Set Financial Goals
Where would I see myself in next 12 months in terms of my savings? What is my goal in next twelve months?
- I want to decrease my debts by _____________________
- I want to increase my cash flows by ___________________
What is my financial goal in next 3 years?

2. TAKE CONTROL OF CASH FLOWS

Golden rule of personal finance: ALWAYS PAY YOURSELF FIRST

At times, more money makes people poor. Why? They get more debt with every pay raise!!!

Majority of people do not prepare their own financial statements of future. Set aside a set percentage from each paycheck or from any other payment you receive from other sources. Deposit that money into an investment saving account. Once your money is in investment saving account, don't take it out till you are ready to INVEST it. Another thing: Focus on reducing your personal debt.

3. KNOW THE DIFFERENCE BETWEEN RISK AND RISKY

People say: Investing is risky. However, investing is not risky, being uneducated is risky.

THE DIRECTION OF CASH FLOWS IS EVERY THING.. If your assets put money in your pocket, you will become rich. But if you rely on traditional definition of asset, you will not have enough assets to pay your liabilities.

ACTION POINT: Can you commit only three to five hours of your time, once a week, to educate yourself on finance? How? By reading business papers, listening to educational cassettes on investing and financial education and reading magazines / newsletters on personal finance?