Marcel Legros - Play the Game of Life

I just finished reading “Rich Dad, Poor Dad” by Robert T. Kiyosaki and I highly recommend it to anyone interested in creating wealth to achieve financial independence. It’s very accessible and entertaining as well as informative.

Like most people, I have struggled with saving enough money at the end of every month to meet my retirement goals. I want to be wealthy and free from the bonds of employment but I had no idea how people do it. Rich Dad, Poor Dad will not teach you what to invest in but rather, how to change your preconceptions that keep you stuck in the daily rat race. It motivates you to explore your potential.

Here are a few key ideas presented in the book:

• The rich protect their money from taxes by containing their assets within a corporation. A corporation isn’t a building with employees - just a legal document that shelters your money from the taxman.
• The rich understand cash flow and work to increase their assets and limit their liabilities.
• Your home is not an asset, it’s your greatest liability. The middle class and the poor think that luxuries are assets while they are actually liabilities. Anything that earns you money is an asset, while anything that costs you money is a liability - even if the liability appreciates in value.
• Pay yourself first and your creditors last, even when you are short on cash. Bills and taxes are paid last, not first.
• You cannot become independently wealthy with low-risk diversified investments. A better approach is a focused effort on higher risk investments and educate yourself to understand what you are investing in. Education reduces your risk. Don’t let someone else tell you not to invest in something, especially if that person has never tried it.
• The middle class and the poor teach their children to work for money while the rich teach their children to make money work for you. Don’t work for a company - own the company.
• Financial education is required to be be successful. The current education system discourages financial literacy and creativity. Invest heavily in your financial education. Read books, take courses, and try new ideas. Your creative intelligence is your greatest financial asset.
• Surround yourself with people successful at what you want to learn. Contribute to the success of others and it will be returned to you tenfold.
• Mind your own business. Your work is not necessarily your business - don’t confuse the two.

The ideas contained in “Rich Dad, Poor Dad” are great motivators to begin a lifelong journey towards financial success. Getting good grades and a career with a great company will not ensure financial success. To become rich, you must invest in your education of how money works, think creatively, and take action.