Why The Average Person Will Never Be Rich

Why The Average Person Will Never Be Rich

Lucky are those people who are born rich or whose forefathers have left a lot of wealth for them. Sadly, such isn’t the fate of almost everyone in this world. The average people are born with very limited asset and they can never become rich. 

Robert Kiyosaki is a financial teacher, who in his famous book “Rich Dad, Poor Dad” explains the financial secrets that the rich people are aware of. However, the average people do not know about the secrets of the rich people. If you too fall under the category of average people, you will not be able to become rich. Get to know the secrets of the rich people so that you can attain financial security.

Lessons learnt from the book – How can this change your future?

The book “Rich Dad, Poor Dad” focuses on the education and financial advice that Kiyosaki got from his rich dad. His rich father attained success in making a multi-million dollar empire from having almost nothing withhis financial judgment and imaginative power. This book consists of six important lessonswhich Kiyosaki has presented for attaining success. These six lessons are as follows:

1.     It is important to have financial knowledge

2.     The rich people do not work for the sake of earning money

3.     It is the rich people who has invented money

4.     Set up your own business instead of working in a company

5.     You must get to know about tax

6.     You should work for the purpose of learning than for money

All these lessons together combine Kiyosaki’s rich dad’s teachings with the experiences he has gathered in his own life. 

The book also describes how rich do not work for money, but they compel money to work for them. The rich possess more assets than the responsibilities they need to perform. Kiyosaki signifies the importance of distinguishing between asset and responsibility. He says if you want to be rich, you must have heavy assets and know how to balance your expenses. He further explains that according to most people, earning a high salary will make them rich, however in reality, it isn’t like that. Higher income may lead to high expense, tax and thus, fall into the debt trap.

Rat race – What is this all about? 

Did your parents tell you to study hard when you were a child? Well, they must have done sothat you can take up higher education and get a suitable job. This is actually a way to secure your future and make you financially responsible person. Accepting this was all you could do when you were a child. Most organization have employees who complain either about their boss or their remuneration. The option to quit such a job is much more worse. If you switch over to a different job, you can get high package but you never know how your seniors are going to be in the new company.

According to Kiyosaki, you’ll be dependent upon your pay package and employer for your entire life. When you take out a mortgage for responsibility increases since you’ll have to pay it off on time. Being an average person, you can’t afford home purchase, your reto take risks with your assets. You may have saved your retirement money in mutual funds for security reasons. Since you are working hard to keep up with interest and inflation, you’ll hardly get time to find some other kind of investment. He further says that you work from January to mid-May for paying the tax. Now, if you can save sufficient money for your retirement, you’ve really done well. This is what rat race is all about. 

According to Robert Kiyosaki, for most people, fear is the main influence for their economic life. People are shaped by their attitude to money and their attitude to money is shaped by their fear. If they can change their attitude to risk and wealth, they can start thinking, acting and living like the rich people. The people need to be financially intelligent for this. The book, “Rich Dad, Poor Dad” has described various concepts. So, if your financial condition isn’t strong at all and you really want to improve it, you should buy this book and must read it for sure.