I do believe that "earning a lot of money is not the key to prosperity. How you handle it is.

" Rich Dad and

Poor Dad taught me two things: these are how important education and financial literacy are. Firstly,
education. I am a firm believer of the cliché saying, “education is the key to success". One of the main
reasons why I go to school is to be successful in life. Successful for me does not only focus on becoming
a flight attendant. It also includes becoming a person who can constantly sustain his living. I want to be
the person who can buy the things that I want in life without any complaint. Secondly, financial literacy.
Education and financial literacy may sound the same but these two terms are of different meaning.
Education is general and financial literacy is specific. Financial literacy should be anchored with
education. It does not mean that if you graduated with a degree, you are financially literate. Commonly,
other people's formula for their savings is income less expenses equals savings. The formula may be
applicable to some but if you really wanted to have constant savings, the best formula is income less
savings equals expenses. Meaning as you get your income, you immediately deduct a certain amount
that is intended for your savings. If you do that constantly, for sure, you will save. Your expenses will be
budgeted as to how much money you have left. The former formula will somehow result in a loss and
you will no longer save. For the reason that, you might exhaust all your income for your expenses. These
include your bills, wants and needs. Compared to the latter formula, if you have already saved, the
residual amount will be used accordingly. You will learn to manage your expenses to the extent that you
will be able to know what the things you will spend your money on or what the things you will not spend
your money on. These situations represent what happened in the Rich Dad Poor Dad story. Both dads
have stable and high earning jobs. Their only difference is their financial literacy. The rich dad is of
course financially literate and the other is somehow literate but not as good as how the rich dad is. The
rich dad knows how to use his money. He uses his money for investments to roll his money and gain
more income. These investments are assets which represent his savings. A savings that he can earn. The
poor dad uses his money to pay his expenses. These expenses are his desires. Sadly results in a loss for
him. The aforementioned situations are actually happening practically. Most of the people now are
enticed with material things. Materials things that are non-value adding. As they receive a certain
amount of money, they immediately buy their wants. This is the truth that I cannot deny. I am also a
person who prioritizes my wants. After reading Rich Dad Poor Dad, I have realized how important to be a
person who knows how to spend money. Things may be easier said than done but I will do my best to
become a person like the Rich Dad.