Whether you have money or not, we all want more. There is more out there. Always. Money in unlimited, and it’s a matter of tapping into it. Wanting more. Finding out how to get more. Working towards getting more for purely the want of getting more money is an ambition entrepreneur dedicate their lives to. Sound simple! It is. There are a few things you need to be aware of first and then there’s really nothing holding you back. But there’s one thing for certain, and all rich people agree – the business of money education starts at home.
When it comes to money, what skills parents teach their children at home about money management and financial situations, has a strong impact on their future. In particular, long-term outcomes of how rich and successful the children will be as adults, depends on their awareness and attitudes towards money passed on from their parents.
Intrigued to know what happens when the healthy money attitudes taught and practiced by a rich dad is passed onto his kids?
Stick around and find out exactly what top skills rich dads teach their kids and why. Also find out why the poor stay poor.
1 – BEING CURIOUS ABOUT MONEY
Ever heard of Robert Kiyosaki? He’s a rich and successful money-making genius because he listened and learned at a very crucial time in his life – at the delicate age of nine. He asked the right questions to two very important people in his life at the time. One gave him the right answers, the other didn’t.
These two people were his dad, and his best friend Mike’s dad. Robert was so curious about money that he bombarded his dad with questions day in and day out. His dad had answers, but not the answers Robert was looking for. Robert wasn’t satisfied with what his dad offered because they reflected an attitude towards money that is adopted by the poor.
Robert grew up in a household that was by no means poor and attended a public school with rich kids. His dad was academically clever and earned a sizable income. And that’s where the red flag appeared for Robert. Robert was confused. His dad earned lots of money, but what was he doing with it?
Robert’s dad believed that if you studied hard at school, nailed a great job, worked hard for life, your income will get you everything you needed.
…But – Robert wanted more.
He realized that working hard and earning money to pay bills, going for holidays, buying clothes and so on is a sure way straight into the Poor trap. Earning money and spending to that limit meant that eventually you’ll be spending beyond your means. And to prove Robert right, eventually that’s exactly what happened to his dad.
One way or another, everyday living gets more expensive, there’s inflation and then the unexpected surprises of something requiring money that wasn’t accounted for.
Now more than ever Robert needed the right answers, he wanted his future to be very different and he has to start learning those skills from now.
And this is how Robert Kiyosaki did…
His dad did pass on one major piece of good advice that would change Robert’s life forever. He told his son that he should ask his best friend’s dad about money because after all he’s an entrepreneur.
Robert didn’t even know what that was and decided to find out.
Mike’s dad is rich. And it took quite a bit of convincing on Robert’s behalf for Mike’s dad to take him under his wing and teach him everything he knows about getting and staying rich. Robert being curious about money was the deciding factor that won Mike’s dad over. Curiosity and the insatiable desire for money, Mike’s dad knew Robert was thinking ahead and ready for the long road to becoming very wealthy. Since the money seed was planted, all Mike’s dad had to do was teach Robert the skills he himself was practicing every day to earn his own bags of riches.
Robert calls Mike’s dad, Rich Dad. Robert calls his own dad Poor Dad. He wrote a book about it, and this is why.
Robert realized that developing a realistic appreciation of the value of money was the key to becoming rich and successful. And that in itself, was the kickstart to a future in which money was going to work for him, and not the dead-end trap of him working lifelong for money like his dad did.
Let’s learn from Robert’s experience, and continue with the top skills rich dads teach their kids.
2 – HOW TO USE MONEY RIGHT
Money education isn’t taught in schools, but rather from home. Being positive about money isn’t the right attitude because when it comes to money, there are right ways and wrong ways to go about being rich and successful.
Rich dads teach their kids about the fact that money comes in and money goes out – which comes with a huge eye opener. There are big differences to where the money is coming in from and what the money is going out for.
If money is coming in from salary, then the outgoings will be quite predictable as the spending’s are the same each month without surprises added of course. This is where the Poor struggle to survive and live and play. If they end up spending more than they are earning to ‘keep up with the Joneses’, they end up in debt. Looking rich here is not being rich, but quite the opposite. Is that new car really necessary? Do you really need that brand name purse for 20,000 dollars? Or that new computer, phone and so on?
Rich dads teach their kids about assets and liabilities. Assets bring in cash-flow without dedicating the time to earn a certain amount of dollars per hour. Liabilities are things that cost money and take it away. So, you’re asking, So What? How can this awareness make a difference?
An entrepreneur starting out may be on a salary but puts some aside for a rainy day.
He goes without that flashy car, those fancy clothes, and the new techy devices. But that rainy day occurs sometime the following year, and he buys assets to begin a serious cash-flow. So now he has an income and a cash-flow and is being careful with how his money is spent. His cash-flow generates its own path to making more money – a handsome snowball effect while he sleeps so to speak.
So, using money right has a huge impact on where you’ll end up year after year. Either getting into further debt or generating a way to buffer your liabilities and set up ways to expand the depth of your money earning capacity without lifting a finger.
3 – WORK HARD FOR THE FUTURE
Working hard in the right direction, doesn’t mean that your stuck on a hamster wheel of work- earn money-spend-work-earn money- spend forever and get nowhere fast. Working hard for the future means things will be different and offer you more options.
Rich dads teach their kids about working hard for the future to increase cash-flow, alleviate stress by easily obtaining what they need and want, and activate opportunities to accomplish even more money-making ideas and success. Money makes money.
So, a bit of hard slog in the right direction in the beginning, will pay off with beneficial and calculated rewards to propel you even further ahead.
4 – KNOW THE DIFFERENCE BETWEEN BEING AN EMPLOYEE AND AN ENTREPRENEUR
I bet you never before thought that there is a big difference between working for money and money working for you?
Rich dads teach their kids the difference between being an employee and an entrepreneur. Right now, you’re thinking that earning money is great, but now that realization has hit hard, makes you think that you’re a slave to working for that money. So, where are you going to end up?
Entrepreneurs find ways to learn from what other rich and successful people are doing and use these newfound ways to harness wealth in their own businesses. Basically, entrepreneurs admit they don’t know everything, and hunger for more real-life working experience solutions and practices – the necessary skills to make it big.
In addition, an entrepreneur will find ways to make money to pay for his outgoings and or if he decides he wants something and looks to find ways to pay for it without having the excuse he can’t afford it. Therefore, his bank account balance is not affected in any detrimental way.
Which one do you prefer? Playing it Poor-safe and work for money? Or let money work for you, while you spend time finding other ways to make money and join the Rich Club?
5 – RISK VS ROTTEN IDEA
It’s one thing to have a great idea to spin money, but it’s another to understand the risks involved aswell.
Rich dads teach their kids the difference between a risk and a rotten idea. A risk in this case is a calculated one, and it may be to find something to solve people’s problems. If you have a sort after solution, and make people pay for it, you’ll always make money.
So, helping people can make money and genuinely solve their problems, line your pockets and help you achieve other money making ambitions.
6 – PASSION VS CHORE
Money isn’t only for the shallow and thin-skinned. A true passion to make lots of money and understanding the right way to go about it is what separates this from an ordinary chore of life.
Rich dads teach their kids the difference between passion for money and a chore, which is working for money, day in and day out.
If you have a passion for money, be consistent, work at it every day and every night if you have to. A chore-orientated venture to make money will set you up for disaster. There’s no love in a chore, so it’s passion that’s the motivator to keep you patient and focused while you work hard for a few years to set yourself up for your rich future?
7 – MAKE THE RIGHT CONNECTIONS
Before you can start building your dream team, meeting the right connections is that tedious but oh so important step to steady financial success.
Rich dads teach their kids to make the right connections wherever and whenever possible. Be aware, you just never know when your next break will be – turn over every rock.
The importance of exposing yourself and socializing in whatever capacity suits where you are at, is a giant step in the right direction to understand wealth in connected terms. No matter if it’s serving neighbors at your lemonade stand or running a marathon, make the most out of everything you do.
8 – BUILD A TEAM.
Two heads are better than one. Want to know why?
Rich dads teach their kids to build a team, not only for support, but to expose themselves to other true and tried ways of dealing with money making issues and their subsequent solutions.
It’s a great way to practice your skills and teach every other person in the team as well. Every problem can be solved, and everyone will learn something new. It’s a win-win situation.
9 – KEEP GOING IN DIFFERENT DIRECTIONS.
Ever heard, don’t keep all your eggs in one basket? Yes…many income earners obtain their financial freedom via one method only. But is being safe the best way forward? If you want to stay Poor, go right ahead.
Rich dads teach their kids to keep going no matter what and choose various ways to make their cash- flow. Robert Kiyosaki has various business ventures plus he admits his second love is real estate.
Earn, buy and buy and buy and Earn, buy and buy and buy must be his only motto.
Overall if something’s working for you keep going. Start up something else, take that risk backed by research and do more. You’re in the business to make money, and the pot is limitless so find other pots of gold.
10 – DON’T GIVE UP
Don’t give up is something we all hear from time to time, no matter if it’s the tenth unsuccessful blind date to tying your shoelaces. We all get it – Don’t Give Up – or do we?
Rich dads teach their kids to never give up, no matter how many times they may fail, there’s just as many successes as well.
Robert Kiyosaki has admitted that things for him haven’t always gone to plan and has failed miserably. But…regardless of those outcomes, he learns new things from them, and successes are unearthed, and millions suddenly appear in his bank statements.
Jump over the hurdles, get up if you’ve been kicked down, keep running past the finish line.
There’s no end to sight to making money.
There’s more out there, but we’ll stop here for today. As Robert Kiyosaki reminds us many times that there are thousands of ways to make money, but sticking to the basics makes it easier, and keeping an open mind keeps you ready for whatever’s next in the rich and successful realm of rich skills for life.
Entrepreneurs aren’t greedy when it comes to sharing their skills and experience. They know all too well that admitting to not knowing everything and seeking help from those who know, will land them in a better position to keep them earning money, in various ways, successfully.
Therefore, with always something more to learn, every day is a lesson – real life lesson that can make a difference to your financial world.
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Credits: Script Writer: Agata Zema Voice: Lee Sy Video: Glaiza Agbayan