In the book Rich Dad Poor Dad Lesson 6 – Work to Learn – Don’t Work For Money. The chapter started with an interview between Robert Kiyosaki and a young reporter. He advised the reporter to learn about sales and the reporter got offended and quoted,” I have a master’s degree in English Literature. Why would I go to school to learn to be a salesperson? I am a professional.” This sounds familiar to me because I have a friend who always tell me that he is a Professional Engineer. In his conversation, he will repeat that he holds a Professional Engineer title at least thrice.
The world is filled with smart, talented, educated and gifted people. We meet them every day. They are all around us. Great talent is not enough. I know doctors who struggle financially. Some are too busy and do not have the financial aptitude to manage their wealth. I know one who put his cash in the bank and will not invest in anything. Maybe he knows about what inflation is doing to his cash but he just cannot bother about it.
They are one skill away from great wealth. Financial intelligence is a synergy of accounting, investing, marketing and law. Combine those four technical skills and making money with money is easier. When it comes to money, the only skill most people know is to work hard.
In school and in the workplace, the popular opinion is the idea of “specialization”. That is, in order to make more money or get promoted, you need to “specialize”. That is why medical doctors immediately begin to seek a specialty. The same is true for accountants, architects, lawyers, pilots and others.
In the book, job security meant everything to educated dad. Learning meant everything to rich dad. It is best to go broke before 30, you will have time to recover. My mentor told me before it is better to lose money when you have a million than when you have tens of it. The quantum will be different. You can bounce back faster with time and experience.
There is an old cliché that goes “Job is an acronym for Just Over Broke” (equivalent to the Chinese way of saying “工字不出头” because “打工的手一停口也停了”) because school does not teach financial intelligence. School is meant to create professional or workers for the society. In short, create jobs or employment for millions of people. Hence, they work and they pay bills.
The net result is that most workers never get ahead. They do what they have been taught to do. They get a secure job. Most workers focus on working for pay and benefits that reward them in the short term but this is often disastrous in the long run.
Young people should seek work for what they will learn, more than what they will earn. Look down the road at what skills they want to acquire before choosing a specific profession and before getting trapped in the Rat Race.
A lot of people look forward to their pay raise every year, and every year they are disappointed. So they will go back to school to earn more qualifications to get another raise, it would be another disappointment. Workers work hard enough not to be fired, and owners pay just enough so that workers won’t quit.
Thinking from a business owner point of view (I have worked with plenty of Small Medium Enterprise), how can the owner give you 20% increment every year? The cost of employee under SG&A or administration cost cannot increase because it is against their objective of profit maximization by means of increasing revenue and reducing cost. Unless, you help to bring in 10x of your salary which is a strong justification to be compensated accordingly.
Everyday at work, ask yourself this, “Where is this daily activity taking you?” Just like the hamster on the wheels, we need to look at where our hard work is taking us. What does the future hold? If you need to make ends meet, by all means – fine, but you need to plan for the exit strategy and what’s next.
In Rich Dad Poor Dad’s book, he mentioned instead of working for money and security, he suggest to take up a second job that will teach a second skill, he recommend joining a network marketing company, if you want to learn sales skills. The decent ones have excellent training programs that help people get over their fear of failure and rejection, which are the main reasons people are unsuccessful. Education is more valuable than money, in the long run.
Life is like going to the gym, the most painful part is deciding to go. Once you get past that, it is easy. If you are unwilling to work to learn something new, aim to become highly specialized within your field. Just need to understand that the more specialized you become, the more you are trapped and dependent on the specialty.
In his book, it mentioned that in the past, it was bad to jump from company to company. Today, it is considered smart. Since people will jump from company to company, rather than seek greater specialization, why not seek to “learn” more than to “earn”. In the short term, it may earn you less. In the long term, it will pay off in large dividends. For me, I am a pioneer in moving around companies because during my time, people tend to stick to a job for at least 3-5 years whereas I will do 2-3 years for each stint. However, I jump to earn which I think is a personal mistake. I should have jump out of the role to learn other skills but earn lesser in the short term. This can be seen in my career trajectory path, I have peers who already arrived at director level whereas I am still a manager.
The main management skills needed for success are:
1. The management of cash flow
2. The management of systems (including yourself and time with family)
3. The management of people
The most important specialized skills are sales and understanding marketing. It is the ability to sell – therefore to communicate to another human being. This is the base skill of personal success. It is communication skills such a writing, speaking and negotiating that are crucial to a life of success.
Read here for Rich Dad Poor Dad lesson 1
Read here for Rich Dad Poor Dad lesson 2
Read here for Rich Dad Poor Dad lesson 3
Read here for Rich Dad Poor Dad lesson 4
Read here for Rich Dad Poor Dad lesson 5