"Rich Dad’s Guide to Becoming Rich Without Cutting up on Your Credit Cards" Book Review
If someone is reading the Rich Dad series expecting to find a magic wand that will make you rich quickly, then they have miserably gone wrong.
This book sure is a guide to becoming rich, but by following a process, a process which is tried and tested. Those who are willing to pay the price to get rich go on to become rich.
Are You Ready to Pay the Price?
Robert says everybody wants to become rich in one way or the other. However, most of them don’t want to pay the price to become rich. There are several ways to become rich, but it all comes at a price. Each of us must pay the price in a way deemed necessary.
Most people simply don’t like the answers they hear when they ask for the price to pay. It’s the price tag that comes with the answers they don’t like.
It’s like an athlete who wants to become a Champion but does not want to put in the necessary hours of practice and self-discipline. That’s the price you pay to become a Champion.
Some lessons Robert learned from Rich Dad from the book will leave you thinking hard.
The price does not always have to be MONEY.
The price is different for different people.
Some pay the price for security but lose their freedom. Some pay the price for freedom and lose security.
You simply pay double the price if you need both security and freedom.
People who don’t pay the price for both don’t get what they paid for.
The Price You Pay for Various Things in Life
If you are someone who has read any of Robert’s books before this one, you would feel you are reading something similar. Even though his books revolve around money, finance, and getting rich, he dwells on the price you pay to become rich.
All of us want to be rich but are not ready to pay the price. Robert talks about why it is important to realize that everything comes with a price and that becoming rich is no different. He says Newton’s law of reaction applies to every aspect and is universal.
For every action in nature, there is an equal and opposite reaction.
1) Price of a mistake – You might make mistakes in life, but mistakes are not the end of it. A person who makes the best of a bad situation/mistake goes on to take corrective measures rather than just sit and lament over it. The price of mistakes is paid off when you work towards correcting the mistakes.
2) Price of education – You can only invest time and money. He explains that education plays a major role in shaping an individual and probably his future. Education may just not have to be limited to academics.
He talks about the lag time in the industry in terms of education and construction, which are the longest. The lag time for the aerospace industry is 2 years, 1 year in the computer industry, and 50 years when it comes to education.
It is this lag time that you pay for when you rely only on academic education to chase your dreams. New ideas in the education industry take ages to find acceptance and get conceptualized.
What you learn is important in the information age, and how fast you learn is important.
Robert lists 3 fundamental types of education that are required for minimal security in the information age. All three types of education are vital in life.
Academic – Education that teaches you to read, write and do arithmetic.
Professional – Education that teaches you the skills to work for money
Financial – Education that teaches you to make money and work hard for you.
3) Price of cutting your credit cards – People normally decide to cut their credit cards because they get on a binge-spending spree. A spending spree that piles up debts on their credit cards.
Kiyosaki explains all that you need to do is not go to extremes when it comes to cards. You don’t spend more than you can afford to pay; it’s as simple as that. Easier said than done, and that’s exactly the price you pay. Price of restraining and not having to cut your credit cards.
The Best Things in Life are Free
In his sharp-witted ways, Robert explains this concept with his own story. He says if you want to get richer, buy a new car but borrow to buy the car. He liked the classic Porsche and the first one that was built in 1989 (Porsche no.1).
He had set his eyes on it and looked Kim’s way. Kim knew right away he liked it and said, well then, find an asset that can pay for your liability.
The best things in life come free when you know the difference between good debt and bad debt to make the right choices. He goes on to dwell on embracing inner happiness over material happiness.
Even though everyone has access to inner happiness, not many people find it. He explains this concept with some important aspects, which let you to a stage where the best things in life are indeed free.
Importance of standard of living.
Importance of good debt and bad debt.
Importance of financial literacy.
Importance of cash flow from investments.
Importance of money working for you.
Be Advised by Ones Who Have Been There and Done That
Robert explains all it takes is that one leap of faith, and you start building that passive stream of income.
Once you realize how it pays off, you go on to repeat the process over and over again. That’s what so many people who took Rich Dad’s advice on making money work for you did.
Rich Dad's advice, if you want to get out of the rat race, then you have to start learning about the different types of income, earned, portfolio, and passive.
You don’t want to miss this book if you want to become rich and not compromise on inner happiness as well. Robert explains with several examples that all forms of success come at a price, a price that you must realize that you have to pay.
Get your copy of the book if you want to read more about the pieces of advice Rich Dad gave on the importance of good debt and bad debt.
(Amazon paid link)
Guest Post - Written by Mr. Lal Bajaj, Bangalore
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