Rich Mindset VS Poor Mindset
In this blog, you will learn about Rich Mindset VS Poor Mindset. Here are some important lessons are taken from all the books written by Robert T. Kiyosaki (author of “Rich Dad Poor Dad” the world’s best financial education book).
List of books
- Rich Dad Poor Dad
- Rich Dad Before You Quit Your Job
- Why “A” Students Work For “C” Students
- Rich Dad Cashflow Quadrant
- Rich Dad Financial IQ
- Unfair Advantage
If an average Indian middle class somehow saves 50% of his salary and keeps repeating this process for many years. Then it will take 5 crore years for him to accumulate as much wealth as Gautam Adani.
In reality, it is not possible, because no one's life is so long, nor can we save for such a long time with discipline. But still, many people do not make any special savings in their life, they do not have any special discipline nor do they have any college degree but then also they create good wealth in their lifetime. Elon Musk and Gautam Adani both are college dropouts.
It means a person can create this wealth because these people showed us by making this wealth in real life but if you follow the procedure which has been told in the school or in the family then you can never be rich and the proof is in front of you because 50% of the world's lower class have less wealth than what Elon Musk and Gautam Adani have. So if you want to achieve financial freedom and build your wealth then this blog will be useful for you.
Disconnect Your Money With Your time
Employee
90% of the world's population falls into this category. This category is very hardworking. They wake up at 8 AM daily to go to the office and complete their boss's orders but unfortunately, this 90% of people have only 5% of the world's total wealth.
Most people are in this category because we are prepared for this category from childhood by default. These people have only one source of income and that is their salary therefore their main goal is job security. Therefore it is very difficult for them to become rich. These people sell their time for money.
In starting their salary is very less and their desires are very much, therefore, they take a lot of debt in starting only. Nassim Nicholas has said that
"The World's Three Biggest Addictions Are Drugs, Carbohydrates, And Monthly Salary”.
Self-Employed
These categories include doctors, lawyers, and owners of small shops. These people also earn money by exchanging their time but they don't have any boss sitting on their heads and instructing them. These people have created their jobs, that's why they are called self-employed.
This is the left side of the quadrant and according to the author, it is very difficult to become rich in this quadrant.
Business Owners
Their main motive is to earn money by hiring skillful people in their company. They know how to delegate their work to someone else. If they don't have money to start a business then they start a business by taking loans or they start a business with a very small amount.
They have to do a lot of hard work and take a lot of risks in starting but these sacrifices are for the short term unless they have set up their system, process, policy, and business. Once these things are set up their employees work for them and make them rich.
Investors
These are those smart people who do research and invest in other people's companies and get passive income.
This is the right side of the quadrant. Poor, Middle Class, and Rich all have 24 hours in a day, what matters is how they are using their time. So use your time efficiently, learn new skills and disconnect your money with your time.
Think Different
Therefore a child, from childhood to his 20s runs before one thing and that is marks. In short, our education system teaches us that to become successful in life we have to get good marks and become “A” students. But according to the author this thinking is not correct because if you look at the definition of the word success then it states “the accomplishment of an aim or purpose”.
According to our education system
Getting good marks till your 20s is a success, then getting a good job is a success, and then having a big house and big car is a success.
Many people score good marks but are they all successful?
They get good marks in a particular subject and therefore they don't have enough knowledge in other fields and hence they are not able to think out of the box.
Most “A” students don't have good financial knowledge, therefore, they take loans like home loans, car loans, etc, and get into a debt trap. And at the age of retirement, all they have is regrets, missed opportunities, and some savings.
Therefore to become successful in life we need to know what we are making our AIM and our Purpose in life.
Rich Are Getting Richer, Poor Are Getting Poorer
Sometimes or the other we must have heard that the rich are getting richer and the poor are getting poorer.
Let me explain to you the real reason behind this. Let us assume 2 characters, Rahul and Ram
- Rahul earns 1 lakh per month but he invests 50% of his salary in stocks and real estate and spends the rest 50% on his daily needs. He drives an old car, uses a 2-year-old phone, and lives a normal life.
- Ram also earns 1 lakh per month but he spends all his income on fulfilling his desires. He drives a new car, uses the latest model of phone, and buys branded clothes, and because of all his desires, he uses all of his money and sometimes takes credit card loans to fulLfil his desires.
After 10-20 Years
Rahul will be financially free and will enjoy his life
Ram will be in huge debt and will not be able to enjoy his life because he has become the slave of his desires.
“Rich People Stay Rich By Acting Poor, And Poor People Stay Poor By Acting Rich”
Rich people get richer by living a simple and ordinary life. They value their free time and passion.
Poor people get poorer because they try to look rich. They don't value their time and their passions are shopping and spending money.
Conclusion
Surround yourself with good people, but if your friends are not interested in investing, you can follow investing accounts on social media or read final finance-related.
List Of Books That You Can Read In Beginning
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