Financial Affluence Podcast
Episode #003 – Financial Lessons from Two Dads – “Rich Dad Poor Dad” by Robert Kiyosaki
On this episode of the Financial Affluence Podcast, we explore the timeless financial wisdom from Robert Kiyosaki’s iconic book, Rich Dad Poor Dad. Through the lens of Kiyosaki's two father figures, we uncover key lessons on financial literacy, asset building, and the distinction between earned income and passive income.
This episode is packed with insights on how to achieve financial independence and harness the power of corporations and smart investments.
If you'd like to get your own copy of Rich Dad Poor Dad, click the link here: Rich Dad Poor Dad: What the Rich Teach Their Kids About Money That the Poor and Middle Class Do Not!
#FinancialFreedom, #RichDadPoorDad, #RobertKiyosaki, #WealthBuilding, #PassiveIncome, #FinancialLiteracy, #InvestmentStrategy, #EntrepreneurMindset, #MoneyMatters,
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- Broadcast on:
- 21 Sep 2024
- Audio Format:
- other
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We leverage industry focus insights with the collective technical resources of our firm to elevate your performance. Uncover opportunity and move upward at MossAtoms.com. Financial affluence podcast. Listen your way to riches. [MUSIC PLAYING] All right, ready to dive into a book that always gets people talking. Rich Dad, poor dad, it's a classic for a reason. It really is, even if you haven't actually read it, you've probably heard about it. People tend to either love it or hate it, you know? Yeah, everyone's got an opinion, which is why we're doing this deep dive. To break down the big ideas, especially for those who haven't gotten around to reading it yet. Love it. I'm all about making these financial concepts actually make sense in real life, so I'm excited to dig in. So Rich Dad, poor dad, it's all about the lessons. Robert Kiyosaki says he learned from two kind of father things in his life. His own dad, the poor dad, educated but struggled financially. And then his friend's dad, the rich dad, who built wealth through business and investing. And what Kiyosaki argues kind of ironically is that traditional education, it doesn't actually teach you that much about building wealth. He's all about financial literacy, right? Like thinking about money in a whole new way. And that leads us to one of the most quoted lines from the book. The rich don't work for money. They have their money work for them. But what does that actually look like in practice? And that's what we're here to figure out. And honestly, it's a concept that can change how you see more than just your bank account, you know? For sure. OK, so let's unpack one of the biggest takeaways from Rich Dad, poor dad. The difference between assets and liabilities. Sounds simple enough, but Kiyosaki really flips the script on this one. He does. It's like this. An asset puts money on your pocket and a liability. That takes money, O-U-T, simple but powerful. Right. It is. And this is where it's interesting, because he kind of challenges this huge assumption about, well, one of the biggest purchases most people make. Their house. Exactly. Yeah, we're basically taught to think of our home as this appreciating asset, right? But Kiyosaki, he throws a curve ball. He says for a lot of people, their house, it's actually a liability. OK, no, wait a minute. Explain that one. Well, think about it. Mortgage payments every month, property taxes, insurance. And don't even get me started on maintenance costs, am I right? Always something. Always. All of that, it's money flowing O-U-T of your pocket every single month, not making you money, costing you money. So my cozy little house, using Kiyosaki's definitions, it's not the financial superstar I always thought it was. Not necessarily. It could be an asset, eventually, if you're strategic. But the key is cash flow. Are you putting more I-N or taking more O-U-T consistently? That's the question. OK, so how do we start to shift our thinking then? If my house isn't this automatic wealth builder, what is? That's where Rich Dad Poor Dad gets really interesting. He wants us to build a system where, like that quote we mentioned, our money is doing the heavy lifting, not trading your hours for a paycheck, but building income-generating assets. So how do we actually build that system? How do we get to the point where our money is working for us? That's where this whole mind-your-own business thing comes in, another one of Kiyosaki's big ideas. And it can feel a little backwards at first, honestly. Yeah, when I first read that chapter, I was thinking, wait, isn't a good job the goal? Like, isn't that what we're all working towards? It's what we're told, right? But Kiyosaki challenges that. He uses this great example, Ray Crocrock, you know, McDonald's. Oh, right, I remember this. Someone asked Crocrock, what business are you in? Yeah. Everyone's expecting him to say hamburgers. Exactly, but he says real estate. Such a good way to look at it. Yeah. He wasn't just slinging burgers. He was building this empire of assets, those restaurant locations. Exactly. He understood the real money wasn't just the product. It was owning the thing that supported the business. And that's actually where Kiyosaki introduces the cash flow quadrant. Oh, right, the cash flow quadrant. That thing always looked kind of intimidating to me if I'm being honest. Yeah, it can be a lot at first glance. But it's super helpful once you break it down. It's basically a quadrant, right? Four sections, E, S, B, and I. Each one, a different way to earn money, but more importantly, a different mindset about it. OK, so walk me through it. What do the letters stand for? So E is employee, someone who works for somebody else. Pretty straightforward. S is self-employed, could be freelancers, contractors, small business owners. They own their job, but they're still trading their time for money directly. So if we're talking about our money working, E and S aren't quite there yet. Exactly. That's where B and I come in. B is business owners deeper. This is someone who's actually created a system that makes money, even if they're not doing every little task in it. So their money's working, even when they're not. What about I? I is investor. This is where Kiyosaki believes real wealth is built. These folks make their money work by putting it into assets, whether it's stocks, real estate, or businesses themselves. OK, so cash flow quadrant, it's about understanding these different ways we can earn and the mindset that go along with each. But how do we go from just knowing this to spotting those rich debt opportunities? That's where it gets exciting. Kiyosaki talks about how the rich don't work for money, they invent it. He truly believes money is an idea tool. The key is your financial intelligence to see what others miss. By financial intelligence, you mean? Think of it like your money smarts, understanding how it works, making savvy decisions, and spotting those opportunities that lead to real wealth. He tells this great story about some real estate deals he did in Phoenix. Market was down, he was able to buy low. Then boom, market bounces back, he sells high. Huge profits. Right, it wasn't just like he knew the market, how to negotiate, when to take a calculated risk. Exactly, and that's what building your financial intelligence is all about, the knowledge, and the guts to make those moves. So we're talking about the cash flow quadrant, building our money smarts. But that's got to be easier said than done, right? Oh, absolutely. Kiyosaki'd be the first to tell you, changing how you think about money, taking control like this. Not always easy. He actually talks about five big obstacles that can get in the way for people. OK, lay them on me. What are we up against? Fear, cynicism, laziness, bad habits, good old arrogance. Honestly, we've all probably struggled with one of these at some point, even without realizing it. No doubt. That fear factor, especially with money, it can be paralyzing, right? Afraid to make the wrong move so you just don't do anything, which might be the riskiest move of all in the end. I remember that story Kiyosaki tells about his rich dad, and remember the Alamo. Such a good one. And it's not even about winning every single time. It's more how you handle getting knocked down, because it's going to happen, investing, life, same deal. Exactly. It's about getting back up, learning from it, making a better decision next time. Like they say, the only real failure is giving up, right? Exactly. And rich dad, poor dad, that whole book, it's about giving you the tools to take control of your finances. It's not some get rich quick thing. It's a call to action. Change your mindset, build your own path. So where does that leave our listener then? What's the one thing we want them to walk away from this deep dive thinking about? This whole thing's been about giving you a taste, right? Of rich dad, poor dad, the ideas in it. But the real learning comes when you start to use those ideas in your own life. Exactly. The book's a starting point. It's up to each of us to keep that education going. Not about memorizing one right answer, but building those money smarts, learning as you go, and adapting. And there are so many ways to do that. If you haven't already, definitely grab a copy of the book, get the full story. Qusaki's also got other resources like that cache of flow game we mentioned. Fun way to put things into practice. Totally. And even beyond Qusaki, there are endless books, podcasts, you name it, all about leveling up your financial literacy. Find what clicks for you and never stop learning. That's the key. 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