GUIDE To Financial Freedom- Robert Kiyosaki

Anybody who reads finance related books is familiar with Rich Dad and Poor Dad famed Robert Kiyosaki. I decided to read his other books hence I picked this book.

The book contains the usual wisdom to deal with our finances.

The words of wisdom from the book are:

  • “You can never have true freedom without financial freedom.” He would go on to say, “Freedom may be free, but it has a price.”
  • Vietnamese monk, Thich Naht Hahn: “The path is the goal.” In other words, finding your path in life is your goal in life. Your path is not your profession, how much money you make, your title, or your successes and failures.
  • Finding your path means finding out what you were put here on this earth to do. What is your life’s purpose? Why were you given this gift called life? And what is the gift you give back to life?
  • She earns little, it does not mean she has to be a poor
  • Cashflow Quadrant (E->S->B->I)consists of
  • E for employee, S for small business or self-employed
    B for big business and I for investor.
  • One of the quotes credited to Ford goes: “Thinking is the hardest work there is. That is why so few people engage in it.”
  • Ultimately, it’s not how much money you make that matters, but how much money you keep, and how long that money works for you.
  • A Hollywood celebrity once said: “It’s not return on the investment that I worry about. It’s the return of the investment.”
  • The difference between a gambler and an investor is simple. For a gambler, investing is a game of chance. For an investor, investing is a game of skill.
  • I think the reason most fail in the first five years is due to lack of experience and lack of capital. The reason the one survivor often fails in the second five years isn’t due to lack of capital, but lack of energy.
  • “Success is a poor teacher,” rich dad always said. “We learn the most about ourselves when we fail, so don’t be afraid of failing. Failing is part of the process of success. You can’t have success without failure.”
  • Money is an idea that is more clearly seen with your mind.
  • “Investing is not risky. Being uneducated is risky.”
  • “Your profit is made when you buy, not when you sell.”
  • An E works for the system. An S is the system. A B creates, owns, and controls the system. An I invests money into the system.
  • John Updike said: “The founding fathers, in their wisdom, decided that children were an unnatural strain on their parents. So they provided jails called school, equipped with tortures called education.”
  • Galileo said: “You cannot teach a person anything. You can only help him find it within himself.”
  • If you do what everyone else does, you’ll wind up having what everyone else has.
  • To improve your marriage, you don’t need to change your partner. It is better to change yourself first. “Don’t work on the other person. Work on your thoughts about that other person.”
  • Emotional Intelligence A big part of being a human being is being human. And being human means having emotions. We all feel fear, sadness, anger, love, hate, disappointment, joy, happiness, and other emotions. What makes us individuals is how we handle those emotions.
  • “You can always quit. So why quit now?”
  • Economies change, but history repeats.
  • In my opinion, people simply fail to realize that they are in this large global game, a virtual casino in the sky, but no one ever told them that they are important players in the game. The game is called “Who Is Indebted to Whom?”
  • “If your neighbor loses his job, it’s a recession. If you lose your job, it’s a depression.”
  • As Eric Hoffer once said: “In times of change, learners inherit the earth, while the learned find themselves beautifully equipped to deal with a world that no longer exists.”
  • The Seven Steps to Finding Your Financial Fast Track are:
  • STEP 1: IT’S TIME TO MIND YOUR OWN BUSINESS
    • Fill out your own personal financial statement.
    • Set financial goals. Set a long-term financial goal for where you want to be in five years, and a smaller, short-term financial goal for where you want to be in one year.
  • STEP 2: TAKE CONTROL OF YOUR CASH FLOW People who cannot control their cash flow work for those who can.
  • STEP 3: KNOW THE DIFFERENCE BETWEEN RISK AND RISKY Business and investing are not risky, but being under-educated is.
  • STEP 4: DECIDE WHAT KIND OF INVESTOR YOU WANT TO BE
    • Type A: Investors who seek problems.
    • Type B: Investors who seek answers.
    • Type C: Investors who seek an “expert” to tell them what to do.
  • STEP 5: SEEK MENTORS
  • STEP 6: MAKE DISAPPOINTMENT YOUR STRENGTH
    Inside every disappointment lies a priceless gem of wisdom.
  • Expect to be disappointed.
  • Rich dad often said, “Only fools expect everything to go the way they want.
  • Expecting to be disappointed does not mean being passive or a defeated loser. Expecting to be disappointed is a way of mentally and emotionally preparing yourself to be ready for surprises that you may not want. By being emotionally prepared, you can be calm and dignified when things do not go your way.
  • When you are calm, you think better.”
  • STEP 7: THE POWER OF FAITH
    The only person who determines the thoughts you choose to believe about yourself, is you.

The book discusses our emotional intelligence to deal with our finances. It is worth reading once.