My family and I were a day or two into our vacation during spring break of my sophomore year of high school. We were all walking towards the pool after lunch. My dad had a book in his hand and told me I should read it. I really didn’t think anything of it, but I’ve always enjoyed reading so I thought why not give it a try. This book was called Rich Dad, Poor Dad by Robert Kiyosaki and it’s the book that pushed me to where am I today. There are a few things from this book that I believe are life-changing for everyone.
“I Can’t Afford This”
We hear people say this simple four-word sentence all the time and don’t think anything of it. This sentence has a way bigger impact than you would ever imagine. Kiyosaki says that this sentence makes your brain stop working and is mental laziness. Once you say, “I can’t”, you have given up all hope of figuring out the problem.
Instead, ask yourself “How can I afford it?” In this sentence your brain will be put to work and you will have to think of a solution to your money problem. Get your brain thinking for long enough and you will find a solution. Be aware of when you use the first sentence and instead ask yourself “How can I afford it?” right after. Get to the point where the words “I can’t” are not even in your vocabulary. This simple tweak to these phrases can change your future forever.
The Importance of Financial Literacy
The importance of knowing two simple words is the difference between you being financially wealthy and having your life controlled by insane amounts of debt. These two words are, asset and liability. An asset puts money into your pocket and a liability takes money out of your pocket. A new car only depreciates the more you drive it where real estate, stocks, or gold can appreciate in value even though they might be pretty old. It really is that simple. Acquire assets and avoid liabilities.
Examples of liabilities: Mortgage, Car Loans, Credit Card Debt, School Loans
Examples of Assets: Real Estate, Stocks, Bonds, Land, Gold
You NEED to study financial literacy just like it’s another college class or even your job. You can have all the money in the world but if you don’t know how to keep it or you spend it on liabilities, you will be bankrupt very soon. If you don’t take the financial side of your life seriously, you need to change that as soon as possible. This is something that I believe has gotten way out of hand and it seems like almost everybody is in crazy amounts of debt. Debt can destroy your life if you don’t take action on it as soon as possible.
I would highly recommend everyone go buy this book right now as it will drastically change your mindset like it did mine. This post doesn’t even hit close to what the book will get into. Go change your mindset about money and change your future.
Do you have assets or liabilities?