11 Diego Jumagdao September 14, 2019

12- Charity Business Finance

PETA: Rich Dad Poor Dad

1. Robert Kiyosaki was born from a middle class family in Hawaii. Like most young boys,
he had a dream. For him and his best friend Mike, their dream was to get rich. He would
always ask his father how to achieve this dream and the usual answer he would get was
to study hard in order to find a secure job for a company. However, through Robert’s
quest in becoming a rich person, he eventually found himself in the hands of his best
friend’s dad. Now, he has two fatherly figures in his life. He called his own dad who was
highly educated and prioritized studying books as his “poor dad”. He called his best
friend’s dad, who wasn’t as highly educated as his own dad, but was financially literate
and always stressed a strong financial foundation for him and Mike as his “rich dad”.
Both fathers always stressed the importance of education and working hard to achieve
your goals. However, both have completely different outlooks and perspectives when it
comes to money. For example, poor dad believes that in order to get rich, Robert needs
to work for a good company in order to get a stable income. In simpler terms, poor dad
believes in working for money. On the other hand, rich dad believes that in order to get
rich, Robert should study hard in order to buy a company of his own. To summarize, rich
dad believes in money working for you. Both dads believe in studying and working hard
but their ideals and beliefs about money are polar opposites. Another important lesson is
to not let fear and desire be our drive or our fuel in making money. Making money will
not make the fear of losing money go away. Furthermore, making money shouldn’t be
done if our primary goal is to spend it on our unhealthy desires and not for investment.
These are some of the many lessons that Robert learned from his rich dad. Eventually,
when he reached a certain age, Robert decided that in order to get successful, he
needed to follow his rich dad. Throughout the rest of his life, he has learned many new
things that has helped him in his journey to become a rich person. Eventually, he
succeeded and now he decided to impart the lessons that he learned from his rich dad
to his readers.

2. Personally, the greatest lesson in business for me was learning how to differentiate an
asset from a liability. Assets are investments that generates income to your pockets.
Meanwhile, a liability is an investment that takes money out of your pockets. When you
apply this in business, you begin to realize some things and scale the concept down to a
level that is appropriate to business. For example, businesses invest on other
businesses as well. In general, a smart business move would be to invest on a company
that would certainly generate income for you. For sure, no one would invest on a
business that would bring further loss in your income. Also, in the operations of a
business, there are people you hire based on what they can bring to your company, and
 how well they could drive the company in the direction where the board of directors want
the institution to move towards. In easier words, a smart company hires people who are
“assets” and not “liabilities”. You need people who could bring something to the table
and can be actually beneficial to the company. This lesson can also be applicable in life.
“Assets”, can be considered as loved ones, friends, or activities that can help us in our
process of self-improvement and our journey in life. “Liabilities” on the other hand are
people who bring us down. Sometimes, these liabilities could also be the people that we
least expect. If we ourselves see that we remain stagnant in the company of a person, or
we see that we are wasting our time on a useless activity, then these things are
considered to be our liabilities. We need to invest in more assets in our life and remove
liabilities from our lives. As people, we should always be moving forward. If we feel that
something or somebody is dangerous and unhealthy to be with and slows us down, then
we need to cut them off.

3. Passive Income is income that is generated without having to go to work. You could be
sleeping on your bed at 3:00 AM and still make money. This is where you make money
work for you. Passive income comes from your investments and assets that you have
built up throughout the years. Obviously, people don’t start out earning passive income.
They work hard and make smart decisions throughout their careers. These people’s
assets are greater than their liabilities. Because of this, their income become higher than
their expenses. All of these start from investing in assets that would generate income for
you and avoiding investing in liabilities that would result in cash moving out of your
pocket. The investments that people with passive income have had built up over time
and now they are earning money even without working. Examples of people with passive
income are successful business owners and smart investors.