Mind your own business

Ok, you may have all heard of the book Rich Dad Poor Dad, if not, it is the tale of Robert Kiyosaki's father figures in his life and how he learnt that following the prescribed rules doesn’t help you grow wealth. 

It is one of those books that feels cliche, it has been around for so long, and gets touted as a must read. But on some level it feels too simple, too easy..  But, the reality is, in 2020 I think we can look at these basic ideas and celebrate them.  Because at Property Lab, we know growing wealth can be that easy.

The premise

“I had two fathers, a rich one and a poor one,” writes the author, Robert Kiyosaki. Although well educated, his biological father (poor dad) struggled financially whilst his best friend’s father, whom Kiyosaki refers to as ‘rich dad,’ dropped out of middle school but eventually became a millionaire. The book Rich Dad Poor Dad (1997) examines the perspectives of both his father’s as well as how they helped shape his thoughts regarding money, investing and life in general."

 

  • One dad followed the rules - university, good job, get married, get a mortgage, pay it off and retire mortgage free.
  • The other dad. Those rules keep you trapped.  Get an investment property, get tenants to pay the mortgage, pay down enough to get another, now use the money from investment 2 to pay down investment 1 faster, rinse and repeat until you have passive income to live the life you want.

Here is the thing, they are both great options.  I never read the book and thought Dad 1 was doing anything wrong.  Most people in Australia live some variation of this life.  It is the expected path, and millions of people live full and satisfying lives following this path.

Dad 2 did things differently.  He questioned the popular narrative and found a formula that worked extremely well.  It wasn’t the prescribed socially acceptable way to live a life, but it worked for him and allowed for him to live a life that was bigger than the average person's life.

At property Lab, we don’t judge people and their life choices.  We aren’t here to get a million Australians to become millionaires. We are here to help people understand that there are many ways to grow their wealth through property investment and if we can help you, we would love to.

In our last blog post we talked about mindset. We believe that this is the number one reason why people become millionaires.  It is about breaking the social conditioning and expectations that are trained into us, and how we perceive our reality.  Now, again, we aren’t trying to convert anyone or encouraging people to take the red pill for investment. Rather, we are here to nurture, support and help the people around us, who are curious, want to learn or yearn to grow their wealth beyond the expectations of society.

Rich Dad Poor Dad covers off the different mindsets.

In the book there are 6 Rules that he covers off.

  • The Rich Don’t Work For Money
  • Financial Literacy is Key
  • Invest in Businesses!
  • Understand Taxes & The Power of Corporations
  • The Rich Invent Money
  • Work To Learn, not for money

There are 10 major insights

#1: Know the difference between an Asset and a Liability, and Buy Assets!

#2: Don’t invest in Liabilities that you think are Assets

#3: Develop A Wealthy Mindset

#4: Make Money Work For You

#5: Be Driven by Passion, not by Fear & Greed

#6: Increase your Financial IQ

#7: Mind your own Business…

#8: Leverage the Power of Corporations

#9: Buy luxuries last…

#10: Value Learning over Money

If you want to chat about the book, and have great insights to share let us know.  If you have read the book and got stuck on how to implement the plan, we can help you.  After all knowledge is powerful when you have a team of experts on your side ready to help.

You can buy the book here

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