Many of us may understand the benefits of savings, however, we may not know how to create or manage our money. There is a range of books that cover personal finance, from Napoleon’s ‘Think and Grow Rich’ to Thomas J. Stanley’s ‘The Millionaire Next Door’. One of the best-selling personal finance books ‘Rich Dad, Poor Dad’ by Robert T. Kiyosaki helps to open up your mind on how to improve your financial knowledge.
- It teaches you to understand that you have a choice in life
We often fail to realise that we have the ultimate ability to choose how we live, how we earn our income and how we spend it. In this day and age, there are a plethora of ways to generate income. Instead of staying at a job we don’t like for the sake of paying bills, ‘Rich Dad, Poor Dad’ encourages us to explore more options on how to make money in order to escape from the rat race.
- It teaches you that mastering your emotions is necessary when dealing with money
“Learn to use your emotions to think, not think with your emotions”
Although mastering your emotions can be a tough one, it is possible. In ‘Rich Dad, Poor Dad’ Roberts rich dad states that the two emotions that trap most people in life are fear and desire. Fear and desire can certainly affect an individual’s thought process leading them to make decisions that aren’t rational.
By choosing your thoughts you can confront fear, weaknesses and any other emotions you may experience. You can also begin to think of different solutions to your financial difficulties, rather than allowing your emotions to control you and your monetary situation.
- It teaches you that learning doesn’t end when you leave school
When you leave compulsory education most people believe that education is done. Whilst you may be done with education, there is no end to learning. If you want to gain more income or make money work for you, then it starts with learning. Whilst money is needed in order to function in today’s society, the only way to gain more income is to gain more financial knowledge.
“Money without financial intelligence is money soon gone”
Let’s take those who win the lottery who are poor and then gain millions become suddenly rich and then revert to being poor again; without financial knowledge, their money is gone in a blink of the eye. Building wealth takes time and understanding, take the time to understand money and how it can work for you.
This post was written by Freda