We all have a longing for a chance at a better life, so we struggle to get our lives on track as fast as we can. Education is therefore deemed as the best route to that success. But according to Robert Kiyosaki, author ~ Rich Dad Poor Dad, he asserts that, " the only only thing missing from our education, is not how to make, but how to spend money. " Rarely are we thought how to use our monies in a profitable way, leaving us in struggling to escape the 'rat race', as he calls it.



Basically, in order to create wealth, we should have a knowledge of how money works, knowing what to do with it after you make it ~ this he calls "Financial aptitude.". For those who haven't come across this masterpiece, we shall share a few priceless insights from the book.



Many people are stuck where they are today ~ not because they don't make money, but because they do not know how to multiply money. Money in itself, possesses no value, it is the value we place on it that makes it an important part of our lives. In reality ~ we desire money cause of the perceived freedom it can afford us. Freedom to make deliberate decisions about how we want to live our lives, so we chase it, when it is supposed to be attracted.



However, the real problem stems from the poor decisions we make after having earned money. When gotten, it should be multiplied by strategically investing it ~ this in turn yields returns that can enable us live the life we desire. Here, we will endeavor to share some exceptional truths laid in this book for insight on how to multiply your money.



" The poor and middle class work for money," Robert says, but what differentiates the rich from the poor is that; "The rich have money work for them.". That is ~ they know how to spend money wisely by investing it on things that possess value. Learning what to do with money is apparently as important as learning how to make money.



It is often said that the poor spend money trying to look rich by buying things they do not need, impressing people they don't know. In this case, one has to be able to exercise discipline in how you part with your hard earned cash, its purpose(money) is to be sent on an errand to make you more money.. In other words, multiplying your cash before going for luxury goods and services. But for most the opposite is always the case.



The solution Robert Kiyosaki says, lies in one rule: "you must know the difference between an Asset and a Liability, and buy only Assets.", it is rule number one, and the only rule.



Assets put money in your pocket, while a Liability is something that takes money out of your pocket. If you want to be rich, spend your life buying assets.. if you want to be poor, spend your life buying liabilities.



With the craze of the social media era, more people crave for social belonging by spending money on expensive gadgets, and brands that stand above their worth [ your net worth is your total sum of liquid assets - your expenditure]. In lay man terms, how much you earn subtracted by the amount you spend, whatever is left is your financial worth. In order to become rich, we must learn to increase our assets (things that put more money in our pockets), and reduce our liabilities (those that take money out of pockets). This is the basic rule of investing. But many often associate investing with huge sums of money ~ it is not necessarily so. Investing in simple terms means placing your money on things that yield profit; with the right information, and analysis, people can invest their cash wisely for increasing their monetary value before spending on luxurious goods cause you're better suited to acquiring them at that moment in time.



Also knowing when to make quick and sound decisions is an integral part of getting rich.. Good decision making enables one weigh the options available to us, gauging which ones favour us in the long run. We should always endeavor to make decisions based on their long term consequences, as that will determine how we live the rest of our lives ~either as rich individuals or poor ones.

Hope this was insightful.

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easier said than done...

[quote author=MrBrownJay1 post=92434245]easier said than done...
As with all great achievements ~ requires discipline and practice.