A friend of mine, Hani introduced me this book. She shared to me that one of her learning from the book was “A coin has three sides, heads, tails and the edge. Intelligent people stay on edge and look at both sides”
In other words, always look at both perspectives and take action which is beneficial to oneself and the other. For example, being an “A” student does not necessarily mean the student is smarter. An “A” means you won and beat your classmate. This was caused by the way the education system was set up which focuses on competition rather than cooperation. Looking at a different perspective which can benefit both sides, the “A” could help the other student to excel as a team. This promotes the value of trust which is worth more than grad “A”.
After listening to her sharing, I was like, I just go to get this book! I bought it from Bookurve. The punchline of the Second Chance is ” For your money, your life and our world.” It is a very attractive statement, especially when we have a hard time to talk about money among our friends and even family.
Let us be real here, money will affect our way of living that is very much a given situation. Money gives us more options to do things with our life. So we need to learn to accept the facts that money is important and we need to learn to embrace the topic about money.
What is the book about?
In one sentence, the book is about a second chance for you, your money, and your life. In other words, is a way to come back in your financial setback in your life. The book has three main parts. They are the Past, the Present and finally the Future! I am going to pick one key lesson from each main part of the book to add value to you. Here we go!
My three key lessons from the book
The Past: Giving people things for free often keeps them poor.
Giving things too much for free encourages the “entitlement mentality” that destroy initiative and personal responsibility. The Entitlement mentality is a state of mind in which a person comes to believe that privileges are instead rights and that they are to be expected as a matter of course. It makes them thinks that they do not need to work as everything on earth are given to you. Over a period of time, they became complacent. They begin to think everything is given to them and not earn. This is when they are in their comfort zone and reinforcing the poor mentality.
My thought? The problem is not giving free stuff. The problem is the ” Entitlement Mentality”. Unfortunately, giving too much free stuff will nurture the entitlement mentality in an individual. We need to stop the entitlement mentality. If you want something, all you need to do is work and earn it. That is why when you buy things, you will tend to take good care of it. Why? It is because of your hard earn money you earn the right to own it. If you got it for free, you will not have the sense of responsibility and ownership to take good care of it.
Question to ponder, what can I do to eliminate entitlement mentality?
The Present: In the information age, the invisible resources are intellectual property.
Robert stated they are four ages of humanity. They are Hunter-Gatherer Age, Agrarian Age, Industrial Age and finally the Information Age. We are now in the Information Age. There are invisible resources which are known as the Internet. We can look at internet similar to real estate or land. How are you going to build a house on the cyberland? How can we make money from the cyberland? Mark Zuckerberg is smart. He builds his cyber land which is known as FACEBOOK to connect people globally. That is his intellectual property that he builds on the land.
My thought? This is indeed this is a good wake up call of Second Chance. I’m currently working as an engineer in an oil and gas company. I belong to the industrial age and as time pass, the age will end! The new age is the Information Age and it is still booming. The question is, are we prepared when the Industrial Age end? This part of the book gave me the drive to start this website, build my on a cyber property through Instagram, Facebook, and of course WordPress blog.
Question to ponder, how can I utilize the internet to build my cyberland?
The Future: Language is the key differentiator between those who lived at the highest levels from those that lived at the lower level.
The language that Robert talks about is the language of commerce. In a simple term, a language of money. Unfortunately, these languages were not taught in school. Robert shared his experience between his rich dad and poor dad. Both spoke English, but they did not speak the same language. He shared the basic language of money. They are Asset and Liabilities.
Asset put money in your pockets.
Liabilities take money from your pockets.
Another vocabulary that Robert shared that is very important is cash flow and capital gains. The poor and middle class invest for capital gains. They buy, hold, and pray that prices go will go up and sell it. The problem is they have no control over whether the prices go up or down. We see very little cash flow here. A true asset produces cash flow. Product and services produce money.
My thought? The key nugget here is to learn the language of money and the ability to identify them throughout our daily life. I have to agree that the language of money was not taught in school. We have to learn once we move into the working world. The key vocabularies are asset, liabilities, cash flow and capital gain. These words are about controllability in your financial space. My “AHA!!” moment is the cash flow. Building cash flow is about selling product that will help people or provide excellent service to help people to reach their desired goal. This is something an actionable work that can be done to achieve the financial freedom that we long for.
Question to ponder, how can I use my passion to provide service to people?
Final Thoughts: Second Chance by Robert Kiyosaki.
If you want to gain knowledge on financial education. This is a book to read! Great information that will help you to redeem your financial journey towards a better life and freedom. Here is the hard talk, the knowledge you gained from the book will not mean anything until you try and make an educated decision. Overall, a highly recommended book to get your financial journey on track.