Friday, 27 March 2015

Day-2: Having The Big House , Car and Income Was Not Enough

Today is Day-2 in my study of the book Rich Dad Poor Dad by Robert Kiyosaki.

On page 1 I can relate to what Sharon Lechter says about financial literacy.  When I was growing up as a teenager in India my dear mother pushed us to study hard as it was the only thing she felt was between having a job and being broke in the 70's.

My parents spent so much of their life's earnings on educating their 7 children giving them the very best of education there was around making us engineers, accountants and administrators. Yet as I was growing up I felt there had to be a better way.

I saw both mum and dad working very hard to just put us through school first and then college. What hurt me most as a 11 year old was to see mum take up a job so we could keep on studying at a private school. Having a large family back then was not easy for my father to bring up 7 children just on one wage. Due to this huge finacial burden they never really had a great life. They were so much like the Poor Dad that Robert talks about in his book - Rich Dad Poor Dad.

Yes we did have the big house and a company car on loan from dad's company as long as dad worked for them. But as Sharon says in the book both parents were now working so hard to sustain the lifestyle they had provided us.

They wanted to give us the best education so we could make it in the real world. They felt education was the key to us succeeding in this world. But what Mum & Dad did not know back then as we were growing up the world had started to change. Just like Sharon says what worked for my grandparents was not going to work for us the grandchildren any more. We needed to adapt and fast if we could make it big into the 21st century.

I remember back then mum used to keep an account sheet of all her daily expenses in an A4 sized book. Recently in 2015, 40 years later I visited my parents home in Bangalore, India from Brisbane Australia. It was for the sad event of my father funeral. What surprised me most was mum still followed those strict accounting practices of 1974.

But what is most astonishing is the fact that mum and dad though they paid off their home found it very hard to manage financially in their old age. They still lived each day saving their last penny.

This brings me back to my story about financial literacy. Today the world is changing so fast. We see people around us who have not gone on to college and many not even school yet they are extremely successful.

So why is this so?

The way to success has changed today as compared to the 1940's and 1970's. Today its about giving value to people and contributing more to society. If we can do just that we will be successful.

Following the old principles will not get you the jobs you go after. Just look around at the college students around you in Brisbane in Queensland Australia. Many of them find they cant find the jobs for their chosen career path when then finish university in Brisbane.

What we must do is look at what success leave behind. In other words follow successful people.

Stay tuned for the next episode of my learning of Rich Dad Poor Dad as I go through the book by Robert Kiyosaki.

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Claude Fullinfaw

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