Our school system is built to teach people a lot of knowledge in various fields, but among them there is no finance.Ĭhildren are not taught about things like saving or investing, and as a result are ignorant about topics like compound interest. It is unfortunate that we grow up without this education. What they lack is financial knowledge, including concepts like accounting, investing, etc. But in reality, the world is full of very talented people who are still poor. Personal and social well-being are both important, but we are not sufficiently educated in finance.Ī lot of people think that to become rich just having talent is enough. Knowing these things will definitely help you make more informed decisions. It's about building a better understanding of finance, about things like investments or risks. That's why fear and greed keep us from becoming richer. The fear of losing will keep you from investing in stocks or bonds, because they carry a fairly high risk, even though they can bring you wealth.Īt the same time, greed will cause you to pour money into improving your lifestyle, like buying a bigger house – perhaps a much safer choice than buying stocks. If you are a person who neglects financial management, this is when emotions will take over. You can invest in stocks or bonds, which can make you more money, or you can buy a house or a car for yourself. People who don't care about financial management are especially susceptible to these emotions in decision making.įor example, you just got a promotion and a raise. If you don't have them, you carry the fear of never having enough of them. If you have money, you will be able to buy everything you want. When it comes to money, everyone - rich or not - has two emotions: fear and desire. Fear and greed can cause people to make bad decisions. It is the fear of not meeting that expectation that keeps us from getting out of the rat race and becoming rich. Result? We can avoid poverty, but we cannot get richer at all. However, it is your boss who becomes rich from your hard work.Īnd yet, we still believe and follow the "mantra" above because of the fear of not meeting the expectations that are instilled in us from birth. The truth is that you can study hard, get into a good school and then graduate with a bachelor's degree and have a well-paying job. Today, that no longer guarantees you a rich and financially stable life. It looks like you'll get a job after graduation, work for a company for the rest of your career, and retire with a monthly pension. We still live by this view, even though it is very outdated. That's because most people's lives carry a fear of social disapproval.įor example, people always have a "mantra" like this: "Go to school, study hard, get a job". At the same time, we also see it as something we really hate. We often talk about “rat race” as something we are all a part of. It means that you do all the work, while someone else - the government, the tax collectors, or your boss - gets more out of it than you. Some people will say it is "an unending habit of working but for others, not for myself". Most of us have heard the term “rat race”, but if asked, how would we define them? Fear of social disapproval prevents us from escaping poverty and getting rich. His book Rich Dad, Poor Dad has sold more than 26 million copies worldwide. Robert T.Kiyosaki is an investor and businessman with an estimated fortune of over $80 million. Those who have a passion for the field of investment.Those who want to escape a life of poverty.The author's great success in his investment career and early retirement at the age of 47 are the best proof of what he said. The author says that the things he teaches in this New York Times bestseller are things we will never learn in society and are things the upper classes pass on to their children to maintain prosperity. Rich Dad, Poor Dad (1997) combines autobiography and personal advice to outline the steps you need to take to become financially independent and wealthy. Rich Dad, Poor Dad (1997), Robert T.Kiyosaki - Book Summary
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