A pivotal point of view separates those who struggle financially from those who live in financial peace. Shifting your financial paradigm to a healthier point of view can make a vast difference in how you grow and maintain wealth. The now famous quote from Rich Dad Poor Dad, by Robert Kiyosaki says, “Poor people work for money, rich people have money work for them.” This audacious concept shows us that attitude and deliberate decisions about money, more than circumstance, influence our wealth. Regardless of your education or current financial status, you can use this simple shift in your outlook to propel your success.
When it comes to money, most people play it safe. They are directed by fear, not passion. When you make financial decisions motivated by fear and greed, you’ll end up perpetuating those feelings, and therefore never reach a place of peace. Even when you make more money, you’ll spend more money.
But Kiyosaki’s philosophy isn’t about curbing emotional spending so much as taking what you learn about money (which may be nothing) in school one step further. Knowing the logistics of money allows you to make more deliberate spending decisions that offer you higher returns in the end. This concept implies that getting a good education and a good job are important, but not the means to success—they are just the beginning of the journey. Your money can work for you by putting emotions aside, using your imagination, and making thought-out, deliberate financial decisions.
Paradigm Adjustments
“The pattern of get up, go to work, pay bills, get up, go to work, pay bills… Offer them more money, and they continue the cycle by also increasing their spending. This is what I call the Rat Race.” –Rich Dad
Let’s look at a few radical paradigm shifts that will get you started down a new road:
“I obtained a good education and good job. I work hard, so now I need a raise.” FALSE: A good education and job are just the beginning, if you continue to make more money without implementing a smart financial strategy you will just continue to spend more money—hence the rat race.
“If I just had a better job I would have more money for the rest of my life.” FALSE: Ask yourself, “Will this job be the best solution to permanently calm my fear?” Any job is a short term solution to a long term problem.
“All I need to do is put some money aside in a 401(k) and watch it grow.” FALSE: A retirement account is one way of growing money (and a volatile one). Real assets put money in your pocket right now and in the future.
Financial Literacy
You shouldn’t be asking yourself how to get rich quicker. The real key to building lasting wealth is financial literacy—to know the difference between an asset and a liability. Your focus is not just on how to make more money, but how to spend money. Here are some “tip of the iceberg” tips to get you started:
- Learn all you can about finance and tax law—become financially literate.
- Evaluate the way you spend money and the methods you use to fund expenditures (credit cards).
- Consider some things you would call assets as liabilities. For example, when you include property tax, insurance, maintenance, and utilities a house may be a liability in disguise.
- Look for income-producing assets. Invest in real, tangible assets that produce income.
- Become your own banker by using The Perpetual Wealth Strategy (we can show you how).
We want to help you learn even more about financial literacy and building wealth. The wealth strategy we recommend allows you to build wealth and still have access to cash—with certainty, liquidity, and control. The first step to take 2 minutes to sign up for a FREE, extensive eCourse called Infinite 101®. You’ll receive access to video tutorials, articles, and podcasts. It literally costs you nothing to become educated on this ideal financial strategy and start changing your wealth paradigm!
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