Revisit Rich Dad Poor Dad – Lesson 3

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Image by mohamed Hassan from Pixabay

The 3rd Lesson from Rich Dad, Poor Dad is to “Mind your own business”. Financial struggle is often directly the result of people working all their lives for someone else. Many people will have nothing at the end of their working days.

Our education system prepares our young people to get good jobs by developing their scholastics skills. Their lives will revolve around their wages which is in the income column. They continue to get higher levels of schooling to enhance their professional abilities. Their professional skills allow them to enter the workforce and work for money.

To become financially secure, a person needs to mind their own business. The key business revolves around the asset column, and not to income column. As stated earlier, the No.1 rule is to know the difference between an asset and a liability and to buy assets. The rich focus on their asset columns while everyone focuses on income statements.

That is why we always hear at work: “I need a raise.” “If only I had a promotion.” “I am going back to school to get the master’s degree so that I can get a higher pay job.” “I am going to work overtime.” “Maybe I can get a 2nd job”.

The primary reason the majority of the poor and the middle class are conservative, you will hear them say, “I cannot afford to take risks” because they do not have the financial foundation. They have to cling to their jobs because they have to play it safe.

When downsizing became the “in” thing to do, millions of workers found their largest so-called asset, their home, was eating them alive. Their asset, called a house, still costs them money every month. Their car, another “asset” was eating them alive. Without job security, they had nothing to fall back on. What they thought were assets could not help them survive in a time of financial crisis.

Start minding your own business. Keep your daytime job, but start buying real assets, not liabilities or personal effects that have no real value once you bring them home. For adults, keep your expenses low, reduce your liabilities and diligently build a base of solid assets. Don’t get trapped into a lifestyle that will not let them get out of debt for most of their working years.

The real assets fall into several categories:
1. Businesses that do not require your presence. You own them but they are managed by other people. If you have to work there, it is not a business, it is your job.
2. Stocks
3. Bonds
4. Mutual funds
5. Income-generating real estates
6. Notes
7. Royalties from intellectual property
8. Anything else that has value, produces income, or appreciates, and has a ready market

I would not encourage anyone to start a company unless they really want to. There are times when people cannot find employment, where starting a company is a solution for them. The odds are against success. So only if you really have the desire to own your own company do I recommend it. Otherwise, keep your daytime job and mind your own business.

When I say mind your own business, I mean to build and keep your asset column strong. Once a dollar goes into it, never let it comes out. Think of it this way, once a dollar goes into your asset column, it becomes your employee. The best thing about money is that it works 24 hours a day and can work for generations.

Keep your daytime job, be a great hard-working employee, but keep building that asset column.

You can refer back to Rich Dad Poor Dad lesson 2 here and lesson 1 here.

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  1. Revisit Rich Dad Poor Dad – Lesson 5 | JC Project Freedom
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