Friday, July 2, 2021

RICH DAD, POOR DAD

I have read the first Chapter of Robert Kiyosaki's "Rich Dad Poor Dad" since the book arrived today.

This book was viral in Japan as well and a lot of influencers (I mean sort of financial YouTubers) referred to this author so frequently, and also some of my acquaintances as well so personally interested in it.

The reason why the protagonist (Robert) had two different fathers are because the poor dad is his biological father and the latter is his friend's daddy who is rich. (It is not because his parent divorced and married again LOL)

Robert's dad was poor or at least financially stuck because even though he was highly paid and highly educated, he didn't have any education and literacy on the finance. 

On the other hand, the rich dad aka Mike's dad was rich because he was literate on money.

There were slight difference between those dads, and it is difference of attitude towards money.

Majority of people (or middle class / poor class) cannot get much money because they are working for money, and haunted by fear and greed. It means they are really conservative and never tries to invest (pay money to earn) such that they save money, then since the bank (FRB or any other nations including Japan) sets its interest rate usually minus so hosting your cash in bank account means your asset decreases in the long run, thanks to the inflation.

Rich people let money earn for them, while poor people work for money.

Of course in real world scenario we need to earn money since no one wants to be bankrupt but the thing is majority of people never try to learn or act to change the current situation.

The point Robert and his friends, 9 years old were prominent was because they tried to act, made their own business.

Initially their try was really stupid counterfeit dime from lead, but later they made another try to collect comics and opened cartoon library earned almost 9 dollars per week.

I think there are a lot to learn from this episode. If you are financially poor it is because you have attitude to blame your current situation such as the workplace or your boss, who does not pay you well, and you cannot change others while you can change yourself.

Tax as well, since poor/middle class people are exploited more since they have few knowledge about how to save taxes, while rich people end up with paying less taxes because they know how to hack the legal bindings.

Probably this is also applicable to the situation in Japan.

This is capitalism rule so as long as you don't know the rule you cannot win financially, ends up being exploited a lot with government or the other private companies. 

If you demonize money and assume earning money is evil, or you say 'i am not interested in money' then you cannot be rich.

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In the real world scenario this is also applicable to me, in my case I drew cartoons for decades, made rap/beats for decades, while the main source of income was programmer.

As of now, I earn chiefly as an engineer, hired as regular employee.

The thing I regret was I had strong negative attitude towards stock/blockchain investment, and even though in several startups suggested the stock options, I was really doubtful about it since it is not the visible income so far. It was not the cashflow such that I declined the offer.

But now I highly regret that attitude because the reality was the people I worked with knew much better on capitalism and how this investment works, and they were much much more literate than me on finance and they already acted investing.

I was far behind them.

Recently I encountered with several books and influencers and some of their advice was sort of wakeup call for me, and I decided to invest. Now I created portfolio and maintaining it.

Also I tried to physically sell my cartoons by joining comic market held in Aomi and I learned tons of things, and it was much useful than reading through the entire MBA books since it was the compound of  my actions and feedbacks.

Yeah, something like that

I highly recommend you to read this book.




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