Money is knowledge to me means that the more knowledge that a person has the more money that person has a chance to make by letting their money work for them. I recently attended on of Robert's real estate seminars. The knowledge that I obtained was astounding. By obtaining that knowledge I now have the opportunity to go out and make more money through my knowledge that I have obtained.
on a short in stock market how does one understand how to obtain the knowledge that a stock will most likely go down, how do you learn this, I understand what you did how do you know and do consistently and know when it won't be doing it anymore
Well, if I took the time to read a few pages a day at borders while I sip on some complimentary water from Starbucks, reading a Financial Literacy book, such as rich dad poor dad. How much money did I invest? If I go to the public Library with my library card and borrow educational financial business, how money works books! how much money did I invest? If I am surfing on the internet like everyone else, but instead surfing up on financial empowerment and education...How much would that costs? Like everything else we learned growing up, it's kind of a backwards figure of speech. So I feel, think and know. Money isn't Knowledge, but yes to a certain extent. If you want to learn from seminars and bust your brain one time with total information that you may walk away not understanding unless you do your diligent homework's. Then for most part buying countless books, traveling and attending seminars. Money can be knowledge. Remember Money just makes you more of who you are. Are you resourceful or unresourceful? That is the difference, Ooops I mean question.
For me, this new rule means, "Money is the result of Knowledge being acted upon." Many people have a great deal of knowledge but without action accomplish little. Knowledge + Action = Achievement, be it money or anything else they are striving for.
Of course after acquiring the Money you are then able to gain more Knowledge through travel, more expensive seminars and having access to people at higher levels with more expansive ideas which helps to elevate you and keep your brain cells jumping. At that point, Money is Knowledge because it makes available experiences otherwise unattainable.
At fifty years ago, the world is industral age, when employee retired can provide by Company. Why were they provide by Company? Because legal were not complete. When if you retired at 65, until 110 years old, the company must be provide on 45 years to you. Until, the government started to DC. The means you can take on contribution on retire. In Hong Kong etc, the employee retired, they were provide by company on before 1997. But after 1997, the employee can take contribution on retire. In fact, I worked in restaurant, the company not contributed on MPF, the MPF means like 401K plans.
In information age, most of the company cut staff to automatic. e.g. the HSBC Bank are automatic bank. means e-banking. Now, I put cheque, money need to ATM, automatic bank, e-banking only. And I achieved B quadrant is Blog only, because my Blog add system, e.g. different language, links, Friend Lists. Today, became B quadrant is lower cost, because we use internet explorer, they were not time, space on limit.
Money is knowledge. More like money is the result of applied knowledge. The knowledge of cause and effect. It is the basic law of physics. The more knowledge you have on a subject the more cause and effect scenarios you know. The more scenarios you know the better the chance that one of them will repeat. Because thats what history does, it repeats itself.
Yes the names change but the underlying events stay the same. It is this repetition of history that makes the rich richer and the poor poorer. The only way to understand these causes and effects is to understand the history of the subject.
There are only 2 ways to learn about history. The first is to read a book. The second is to create history by doing. Take a pole of how many Americans read a non-fiction book this month and how many went to the gym and you will quickly understand why America is where it is today.
I agree that knowledge is vital, but as you have pointed out it is most important to be able to find new information and to be able to adapt and use this new information. We must all learn to think critically and independently in order to utilize new information and technology.
People who make large sums of money in markets have the best and most complete educations, experience that comes from years of work in their specialized field working with others who mentor them. They also have information flows that aren't available to us common folk. How does someone match that - because these are the main people we share the market with.
A totally different thought - if knowledge is the answer, why is cheating, fraud, theft, lying so much a part of the financial world?
Also, if the curriculum is to be changed to add financial topics, who will teach it? It took our computer illiterate teaching profession 20 years to otain a basic undertanding of computers. How long will these financially challenged people need to educate themselves in financial matters?
Well in my family now and for long time we think that "Knowledge is Power" an wen yuo are in that posicion everythin can chage and I´am not saying in a bad meaning but when i star studing the forms of Robert my power chaeng and I´am meaking a very much improubing in my bussines and my investments that why noe i can´t stop of lernin about money and financial sataff
I received absolutely no financial education, and realize now how important it is to have one. There are many people like me, who also probably don't know how to get that education. I think a great addition to this chapter would be some suggestions for that. Maybe a list of books, or classes to attend (are there good ones that teach the truth?).
I would like to turn that around and say "creative knowledge is money".
As much as I have learned from Robert and will continue striving to learn about how money works in this quickly changing world, I think we all need to be careful about latching on to one guru and doing as they do. We need to diversify our education base and personalize what we learn so that we can best serve ourselves and our own local community (think global, act local).
I highly respect Robert (his books have literally saved me from emotional and financial dispair), but we need to use his, and others like him, wisdom as a diving board to look inward and find what is best for us personally and locally.
The point I am trying to make is we all can't follow the same path to happiness and wealth. We have to decide for ourselves individually what exactly each of those means to us and not look down upon or be jealous of the next individual who wants more or less than we do. Sometimes this means doing a soul searching reality check when these emotions arise in us.
In order for each of us to find our path, I think a well diversified education in creative thinking in respect to our financial education would go a long way.
I´m not an English native speaker... so please forgive any mistake; agree with the concept, even more, mine is a very similar story to yours (roots only -hopefully as for now-) and though some laugh at me when I explain to them why I think you´re right or tell them how, slowly, step by step, following your concepts... things are beggining to change in my life... I believe it´s all true. Does anyone need more judgment facts than those on the news today???
My father was an Industrial, had very good moments - I can say he did in the 70´s most of what I´ve read from you... but he failed not teaching me...and I failed not trying to learn...(may be that´s because old Japanese say "Children grow(learn) looking at dad´s back, while he´s working...) , my mother sent us 4 to school and taught us to prepare to have a good job... she has always said borrowing money is risky, said we should learn to live within our incomes(paychecks). I can´t blame her... (as far as I know -at least old Japanese were taught to feel pride for their jobs first of all-, may be we can ask Mr. Tom Cruise...) my father lost almost everything at the end of the 90´s...he used to say he was in business mainly because he liked that...(never said "for money"), but the truth is on both sides... I feel... he loved business and needed money, also, obvious...(but sounds "dirty" to say so...)
I left home when 19, but, as the elder son...was called back when 27 to take over the company (or should I say... "the remaining problems of the company" )...Because I was programmed to Work... and hard.. 16 to 20 hours 365 days...(might sound strange,but as a "good Japanese son"...I´m PROUD my personal record is 56 hours straight... -the Last Samurai?-)..Somehow we survived, but I didn´t realize I was not doing good until I found your book(s) and then is when I realized my father was right...he was doing quite well, but he couldn´t switch to the next Age...(I´m not saying I have...neither)...Information, good information. A new approach to Assets and Liabilities, not getting into the bubble..
I agree with your approach to the problem, we must learn about money, because in my country (at least at the school I went to... none of REAL LIFE was taught)but wouldn´t it be better to say that KNOWLEDGE IS MONEY...? because... Money is knowledge... sounds to me as "If you have money, you can have knowledge..." which I feel isn´t what you are trying to say...Again I´m not an English Native Speaker so I can be completely wrong...
One point that I think is better to say now than later, is that sometimes learning "hurts" and anyone intending to get financial independence should be aware of that, as babies do...try...fall...(cry if needed) but finally stand up and carry on...!!!! the goal is there but we need to keep our ego away...I think we can fail (who hasn´t)...failing by itself is not "bad"... what is bad is attaching our fails to others !!! or not assuming our own responsabilities or having others to solve them...
Before I read you, I didn´t know who Mr. Buffet is...! Bears and Bulls were nothing more than two animals to me (too much Animal Planet)...I was a complete ignorant, doing business...trying to learn as fast as possible, trying to read the Disney World´s tourist guidebook while driving towards Orlando.
While reading your books, there has been an common theme that you do not need money to make money. In this chapter you really wrote it out in bold ink. What that means to me is that concept is still your reality. I know it is true, yet the hard part is making that my reality.
I still believe it is true, and I am working hard to make that my reality!
In a lot of ways, I think we have just forgotten the basics. I live in the Middle East and often go to the gold "souk" - the gold market downtown.
There are always old Bedouin women there, slapping down chunks of 18K-20K bracelets and rings to sell when prices go up.
I became interested in gold a long time ago when I heard a story on the radio about similar gold markets in India. When gold was down, they bought. When it went up, they sold. That level of "involvement" might have seemed base to people like my parents who always hired financial advisors to manage their stocks. That process of actively "managing" money, while perfectly logical, got blindsided somehow by propoganda-the market returns 8% annually, stay in for the long haul, etc.
But today of course I can see the wisdom in what these women have known for centuries. If knowledge is money, many of us have forgotten how to use that knowlege - some of which is fairly primitive. People don't understand why I love going down there to see the market, and ask why we don't go instead to upscale places where the more stylized jewelry is, or where diamonds are sold.
I totally agree Robert. I was walking in the forest this morning, thinking: For me, this New Rule means that Knowledge is pure information and intelligence used in the right direction for my benefit and for others. Knowledge creates money and everything in our human way of living. Greetings, DA
I like the new concept. Money is where all the power lies in America. Despite other peoples opinion, if you don't have money in today's world then you don't exist. I would like some information on that stock technique that you mind mention of. I think that is a good idea.
If i read any positive news about any company that has strong financial statement, i would love to invest in it like next day or next minute because i know i would have higher return from that investment.
It is a broad statement to say teachers are not paid well in western society. In Canada, teachers are paid quite well. For example, my sister in law has eight years experience, teaches grade three students and gets paid $80k per year. If she taught older students, or was head of a department at a high school, she would be paid even more. Not bad for a job that gives four months holidays per year.
I would counter that underfunding of education is unique to the USA in the western world.
With the understanding of how money works one can create their own wealth. When you acknowledge your own weaknesses you can change your future and the future of your children. Knowing how the rich think will allow you to work on your own thoughts so that you can see things the way they do. Research the practices of successful businesses to better your own business.
These practices will increase your knowledge which in return will increase your money. That is what "Money is Knowledge" means to me.
In 1967 as a senior I opted to take a small class outside the college track. It was taught by an elderly teacher and it was all about using insurance, yes, how to balance a check book, but also how to form a small business. It was for those who might want to have a small manicure shop or begin a carpentry business. It was strictly E and S. It was a new world to me, none of it had ever come across my radar before. Unfortunately there were only five in the class. I don't know if it was ever offered again but the teacher was excellent. She was also very concerned that a lot of us were graduating financially unarmed. She was the last teacher, until I read { Rich Dad, Poor Dad} and I began to re-explore the entire concept of money, who gave me anything approaching a financial education. Even in college, only in my history courses did I begin to question what was going on. I had a teacher who encouraged us to go back and read primary sources instead of a canned version in an approved textbook. It opened my mind which is what reading your book is also doing.
While I agree the catch phrase 'money is knowledge' needs some explaining, it should be noted that knowledge is the deciding factor. Although will and discipline are also key, these might be related to self-knowledge. Also, people naturally have will and discipline to differing degrees, (although admittedly very low in many cases for the general population) but since knowledge, especially financial knowledge is not naturally occurring and may be completely absent it bears the emphasis.
We all know this is not a how-to book, and Robert does give a context pointing to the information age. And of course, if we want to be more specific there is a difference between information and knowledge, too.
And while I (and I think Gatto) would also agree that spending more on our educational (or schooling) system is not the key, when a thinking person has enough information it can lead them to seek out the right knowledge - if they are not biased in their view. It's a good point that if being an informed person made you rich the Poor Dad would be the rich one, although I think a lack of self knowledge prevents one from examining the beliefs regarding money and that can be a big block. Clearly there are many well educated, better informed people than those that follow Roberts work. But in spite of being more intelligent and well read, if they are not open to these ideas then we know something they don't. Frankly knowledge has to do with the truth, whereas information without understanding and an appreciation of its importance is ultimately of limited value.
CHAPTER 2
The chapter starts out with the idea that financial education should start in the schools. It also begins with the way the children are taught and the reasons the educational system has failed to teach our children how to think. I have read John Gatto's books and based on my own observations, I think he is right on. Anyone who is frustrated about why our schools are failing should also read "Less Than Words Can Say", by Richard Mitchell.
One of my local schools had a project to bring some financial knowledge to 11 to 15 year old students. I conducted one of the classes. It was based on an outline that I let my 12 year old and a 30 year old, self made business man look at. They both said their eyes were shutting before they finished the first page. Fortunately, I was allowed to throw the outline away and do what I wanted. The point is, the school would bring their same old failed formulas to teaching finance. As it stands now, the education system would only succeed in nailing shut the coffin on the children's interest in financial matters.
The LAST thing we need is more of the same kind of "education" on any subject but Obama is pushing for just that. What we need is LESS money spent on education by eliminating the bureaucracy from the system, having a system of "Right to Teach and Learn" not hampered by the enormous layers of bureaucracy, teachers unions and corporate interests. I could go on and on but there is more I want to write about the chapter. The best thing Obama could do, but it would only be a good start, is eliminate the Department of Education.
More to follow on chapter 2. Thanks Robert.
Is not a correct concept. Look at people who win the lottery, are they suddenly smart? No, by the basic fact that they are playing the lottery, the odds are that they will be broke again soon.
Spending money on our current educational system is also a losing idea. It is similar to giving the government money to do anything. The likely hood is that, regardless of what we spend on public education there will be little to no change in the outcome. You make valid points about government spending and socialism then accept the unfettered spending of $1,000,000,000,000 by the government just because there is some money for schools?
Robert you talk about shorting a stock. Well first off, you have to have the money in your account to cover at least half the shares you borrowed. Secondly you not only need the knowledge, but more importantly, you need the discipline to follow your trading system. You need the discipline to accept draw downs on your account. You need the discipline to exit when your system dictates.
To by a piece if real estate you need money. Even if you find a property you can buy with no money down, you need the discipline to find that property.
You need the will to take action. You need the knowledge to apply and the discipline to do the action correctly.
Equating money to knowledge is fraudulent. In that case your poor dad would be rich.
I will agree that we should fight the old adage that time is money. That, at its heart is trading your time for someone else's dollar.
Maybe you should also examine the use of the work money. I think, what people should be pursuing is not money but wealth.
I know you need a short phrase to highlight your idea, but this has to many flaws. Having money does not bring you knowledge. Having knowledge does not lead to having money. Even having financial knowledge does not lead to having money, though it may lead to you keeping a bit more.
It is a conceptual idea. Knowledge is always powerful as long as it is the right knowledge and based on ethical principles. Money is knowledge. This tells me that all we need is to know the rules by educating ourselves of what the rules of money are and then and only then can we take appropriate action. Creating money out of nothing can also possibly be considered a spiritual concept. Tapping into the vast resources given to us by our creator allows us to tap into a vast reservoir of knowledge via the subconscious mind and then translating this into thought and then into action in order to become financially successful and finacially literate is powerful. Teaching people that this information is availble and how to tap into it is crucial. It all starts with a thought, then an intent & then with action it becomes a reality.
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yes! Money is knowledge .... and it is an old financial method.
Hi! Robert, I read a book before that I even consider it as one of my treasures. the name of the book is " Richest Man in Babylon " it teaches how to keep money, to set aside a portion of it, for ourselves and not to spend it right away. and it is what our Social Security System and other Insurance Company are doing. the second thing I learn from it ( and it is based on a setting during the Agrarian Period. ) is to acquire Land, Herds, Crops Plantation, and other means that can bring money to your homes or to your pockets, and the last is; according to the Author during a public forum, the requierements to become a successful businessman is your; Youth, Knowledge, Passions, and Dreams. so, Money is Knowledge was used already by our forefathers a thousand years ago, and until now it is still apllicasble and effective. : )
Since I was a child, I was told to save my money for a rainy day. No one ever bothered to tell me what that meant. It would rain, and I'd run to the arcade or movies with my "rainy day fund".
I find myself angry when I think about my wasted "fortune". I have been working since I was 11 and always would trade a day of work for play just to have the money my friends could easily get from their parents. I grew up in a single parent household and my mother was far from educated in the ways of money. If someone, anyone would have took a few moments out to teach me how money worked, I am certain I would have made a small fortune by the time I went to college.
This is why I am eagerly trying to educate myself through this book and many others. I have spent 20 years in school and have never had a class that taught me how money works. I look forward to feeding my brain with this knowledge so I don't make the same mistake with my children. I want to be able to pass this knowledge to them, because I can't count on the schools to do it.
The more I read your books, the better I am understanding what you are trying to get across to us.
Money is Knowledge. You made $35k from borrowing from the market and cashing in your returns. Wow!!
It isn't about "having" $'s, it is about the "knowledge" of what to do and how to do it. I do get now that it is much riskier to be ignorant.
Until reading what you had to say about academic, professional, and financial education - I was thinking that in our society today, being a professional is not where success is. I now stand corrected and I very much appreciate it. You do not have to be a CPA, DR., lawyer, etc., to be a professional. You need the "knowledge" of the industry that you choose to gain your cashflow from. We need academics and financial to know "how" to handle the cashflow.
That is extremely freeing concept if you think about it. I guess in order to beat the system, what we have to do is obtain knowledge that once used will produce financial results, that will get us closer to financial independence. Catch is, it has to be correct knowledge and applied at the time when windows of opportunities exists. That’s why I’m reading this book.
This is very true. I invest my money into VUL's and I keep myself updated with information. So far, right now, I consider this time as the Great Sale since the Great Depression, where everything is a bargain. My agent told me that I am just only one of two, who keeps on investing on the equities fund, while the rest of the people save their money into the conservative funds. The others save, because of fear of the present global crisis. And one day, when or if the crisis ends, I am projecting to receive twice my principal amount on top of the principal amount. The difference between the others and I is only one word: Information, ergo, Knowledge.
I agree with you, knowledge is very important in this rapidly changing information age. But it should be new updated knowledge not obsolete knowledge in order to make money. (For example the US dollar was a strong currency in a certain period, but now it is a gloomy currency heading to disaster.)
My understanding of this rule is that knowledge applied correctly can lead to profit. So far, though, I have always needed to invest some of my own funds (for example 10% in the case of property) ... I eagerly await the next chapter/s. The possibility of making money with no initial investment is fascinating.
This point reminds me of that Buckminster Fuller quote: "Don't fight forces, use them." Of course, the intelligent way of using forces is to understand how they work, and position yourself where you may benefit from their action, rather than just trying to acquire a lot of one type (perhaps by repeating one type of activity - what we call a job) directly and then use it exclusively. Someone in a nearby city recently robbed a person at gunpoint for ten dollars, now that is certainly very little return with a poor use of and limited view of force. The reality is there are all kinds of forces in the world that may be used, we just have to think outside the box to see how they might be used.
As much as I value your contributions to the financially uniformed; I have to say that I do not subscribe to that rule. I think that "Idea" is not an effective one because the "MIND" is the source of knowledge, power, money, etc. Money has no power, period. People's ideas, info, etc. about money give money the illusional power that the mind is responsible.
Strictly speaking, knowledge is money but money is not necessarily knowledge. After all, someone who has a lot of money but no knowledge ABOUT money may just spend it, the only knowledge it may buy is one very expensive lesson learned the hard way. Even if you used money to increase your knowledge, that is only as good as the quality of the information. Before you become knowledgeable the type of education you buy into is only as good as your knowledge at that time - which is perhaps based on little more than reputation and popular opinion.
Furthermore, although it makes the most sense to become knowledgeable about money itself in the long run, even other types of knowledge can make you money. The thing is the nature of knowledge (or understanding) make it more valuable than anything we have a limited supply of, and can help us increase those other things like money or time. (for example, a longer life span, or freeing up time from work so you can do other things you actually want to do) The fact that profit is made from other peoples time and money should tell us something about what is more important and more valuable. So even the old saying "time is money" really doesn't compare when you're talking about knowledge.
The issue is that many people see and view riches as evil. Indeed many wrongly quote the bible and say that money is the root of evil, whereas the bible says 'love of money is the root of evil'. Again people think that to be poor is blessed.
Honestly I agree with you. Money is knowledge and knowledge is power. However I just want to add that like anything in life money is valuable to the extent people give it value.
In the final analysis, I hope we all learn and learn fast
I really believe that money can be use for good and well as evil. I agree with money is knowledge because it how to use it make you rich. As scrooge McDuck would said, "As my dad would say, Work smarter not harder" to make money. I truly believe that if I know how money work and have it work for me then I will have financial security via financial freedom. So we have to think smarter when you how to use money and must leave human emotion to it. We must also have educational system that also deal with money matter. So end Knowledge is money and freedom.
I would say that this notion is correct, but I would also state emphatically that ACTION on knowledge is actually more important. That one knows how to short a stock, or build a website, or whatever, does not necessarily translate into that person taking the actions necessary to create wealth. I admit in my own case this has sometimes been true (due to fear of loss), and I know of others that have effectively confined themselves to a life of subsistence rather than a life of abundance because of fear.
One must have knowledge, but one must have the courage to ACT on that knowledge before it gains any value.
Money is knowledge to me means that the more knowledge that a person has the more money that person has a chance to make by letting their money work for them. I recently attended on of Robert's real estate seminars. The knowledge that I obtained was astounding. By obtaining that knowledge I now have the opportunity to go out and make more money through my knowledge that I have obtained.
on a short in stock market how does one understand how to obtain the knowledge that a stock will most likely go down, how do you learn this, I understand what you did how do you know and do consistently and know when it won't be doing it anymore
Well, if I took the time to read a few pages a day at borders while I sip on some complimentary water from Starbucks, reading a Financial Literacy book, such as rich dad poor dad. How much money did I invest? If I go to the public Library with my library card and borrow educational financial business, how money works books! how much money did I invest? If I am surfing on the internet like everyone else, but instead surfing up on financial empowerment and education...How much would that costs? Like everything else we learned growing up, it's kind of a backwards figure of speech. So I feel, think and know. Money isn't Knowledge, but yes to a certain extent. If you want to learn from seminars and bust your brain one time with total information that you may walk away not understanding unless you do your diligent homework's. Then for most part buying countless books, traveling and attending seminars. Money can be knowledge. Remember Money just makes you more of who you are. Are you resourceful or unresourceful? That is the difference, Ooops I mean question.
For me, this new rule means, "Money is the result of Knowledge being acted upon." Many people have a great deal of knowledge but without action accomplish little. Knowledge + Action = Achievement, be it money or anything else they are striving for.
Of course after acquiring the Money you are then able to gain more Knowledge through travel, more expensive seminars and having access to people at higher levels with more expansive ideas which helps to elevate you and keep your brain cells jumping. At that point, Money is Knowledge because it makes available experiences otherwise unattainable.
At fifty years ago, the world is industral age, when employee retired can provide by Company. Why were they provide by Company? Because legal were not complete. When if you retired at 65, until 110 years old, the company must be provide on 45 years to you. Until, the government started to DC. The means you can take on contribution on retire. In Hong Kong etc, the employee retired, they were provide by company on before 1997. But after 1997, the employee can take contribution on retire. In fact, I worked in restaurant, the company not contributed on MPF, the MPF means like 401K plans.
In information age, most of the company cut staff to automatic. e.g. the HSBC Bank are automatic bank. means e-banking. Now, I put cheque, money need to ATM, automatic bank, e-banking only. And I achieved B quadrant is Blog only, because my Blog add system, e.g. different language, links, Friend Lists. Today, became B quadrant is lower cost, because we use internet explorer, they were not time, space on limit.
My Blog:
http://jessekevinsammak.mysinablog.com
Money is knowledge. More like money is the result of applied knowledge. The knowledge of cause and effect. It is the basic law of physics. The more knowledge you have on a subject the more cause and effect scenarios you know. The more scenarios you know the better the chance that one of them will repeat. Because thats what history does, it repeats itself.
Yes the names change but the underlying events stay the same. It is this repetition of history that makes the rich richer and the poor poorer. The only way to understand these causes and effects is to understand the history of the subject.
There are only 2 ways to learn about history. The first is to read a book. The second is to create history by doing. Take a pole of how many Americans read a non-fiction book this month and how many went to the gym and you will quickly understand why America is where it is today.
I agree that knowledge is vital, but as you have pointed out it is most important to be able to find new information and to be able to adapt and use this new information. We must all learn to think critically and independently in order to utilize new information and technology.
A couple of observations:
People who make large sums of money in markets have the best and most complete educations, experience that comes from years of work in their specialized field working with others who mentor them. They also have information flows that aren't available to us common folk. How does someone match that - because these are the main people we share the market with.
A totally different thought - if knowledge is the answer, why is cheating, fraud, theft, lying so much a part of the financial world?
Also, if the curriculum is to be changed to add financial topics, who will teach it? It took our computer illiterate teaching profession 20 years to otain a basic undertanding of computers. How long will these financially challenged people need to educate themselves in financial matters?
Well in my family now and for long time we think that "Knowledge is Power" an wen yuo are in that posicion everythin can chage and I´am not saying in a bad meaning but when i star studing the forms of Robert my power chaeng and I´am meaking a very much improubing in my bussines and my investments that why noe i can´t stop of lernin about money and financial sataff
I received absolutely no financial education, and realize now how important it is to have one. There are many people like me, who also probably don't know how to get that education. I think a great addition to this chapter would be some suggestions for that. Maybe a list of books, or classes to attend (are there good ones that teach the truth?).
I would like to turn that around and say "creative knowledge is money".
As much as I have learned from Robert and will continue striving to learn about how money works in this quickly changing world, I think we all need to be careful about latching on to one guru and doing as they do. We need to diversify our education base and personalize what we learn so that we can best serve ourselves and our own local community (think global, act local).
I highly respect Robert (his books have literally saved me from emotional and financial dispair), but we need to use his, and others like him, wisdom as a diving board to look inward and find what is best for us personally and locally.
The point I am trying to make is we all can't follow the same path to happiness and wealth. We have to decide for ourselves individually what exactly each of those means to us and not look down upon or be jealous of the next individual who wants more or less than we do. Sometimes this means doing a soul searching reality check when these emotions arise in us.
In order for each of us to find our path, I think a well diversified education in creative thinking in respect to our financial education would go a long way.
Dear Mr. Kiyosaki:
I´m not an English native speaker... so please forgive any mistake; agree with the concept, even more, mine is a very similar story to yours (roots only -hopefully as for now-) and though some laugh at me when I explain to them why I think you´re right or tell them how, slowly, step by step, following your concepts... things are beggining to change in my life... I believe it´s all true. Does anyone need more judgment facts than those on the news today???
My father was an Industrial, had very good moments - I can say he did in the 70´s most of what I´ve read from you... but he failed not teaching me...and I failed not trying to learn...(may be that´s because old Japanese say "Children grow(learn) looking at dad´s back, while he´s working...) , my mother sent us 4 to school and taught us to prepare to have a good job... she has always said borrowing money is risky, said we should learn to live within our incomes(paychecks). I can´t blame her... (as far as I know -at least old Japanese were taught to feel pride for their jobs first of all-, may be we can ask Mr. Tom Cruise...) my father lost almost everything at the end of the 90´s...he used to say he was in business mainly because he liked that...(never said "for money"), but the truth is on both sides... I feel... he loved business and needed money, also, obvious...(but sounds "dirty" to say so...)
I left home when 19, but, as the elder son...was called back when 27 to take over the company (or should I say... "the remaining problems of the company" )...Because I was programmed to Work... and hard.. 16 to 20 hours 365 days...(might sound strange,but as a "good Japanese son"...I´m PROUD my personal record is 56 hours straight... -the Last Samurai?-)..Somehow we survived, but I didn´t realize I was not doing good until I found your book(s) and then is when I realized my father was right...he was doing quite well, but he couldn´t switch to the next Age...(I´m not saying I have...neither)...Information, good information. A new approach to Assets and Liabilities, not getting into the bubble..
I agree with your approach to the problem, we must learn about money, because in my country (at least at the school I went to... none of REAL LIFE was taught)but wouldn´t it be better to say that KNOWLEDGE IS MONEY...? because... Money is knowledge... sounds to me as "If you have money, you can have knowledge..." which I feel isn´t what you are trying to say...Again I´m not an English Native Speaker so I can be completely wrong...
One point that I think is better to say now than later, is that sometimes learning "hurts" and anyone intending to get financial independence should be aware of that, as babies do...try...fall...(cry if needed) but finally stand up and carry on...!!!! the goal is there but we need to keep our ego away...I think we can fail (who hasn´t)...failing by itself is not "bad"... what is bad is attaching our fails to others !!! or not assuming our own responsabilities or having others to solve them...
Before I read you, I didn´t know who Mr. Buffet is...! Bears and Bulls were nothing more than two animals to me (too much Animal Planet)...I was a complete ignorant, doing business...trying to learn as fast as possible, trying to read the Disney World´s tourist guidebook while driving towards Orlando.
Thank you very much for your time and books..!!!
While reading your books, there has been an common theme that you do not need money to make money. In this chapter you really wrote it out in bold ink. What that means to me is that concept is still your reality. I know it is true, yet the hard part is making that my reality.
I still believe it is true, and I am working hard to make that my reality!
In a lot of ways, I think we have just forgotten the basics. I live in the Middle East and often go to the gold "souk" - the gold market downtown.
There are always old Bedouin women there, slapping down chunks of 18K-20K bracelets and rings to sell when prices go up.
I became interested in gold a long time ago when I heard a story on the radio about similar gold markets in India. When gold was down, they bought. When it went up, they sold. That level of "involvement" might have seemed base to people like my parents who always hired financial advisors to manage their stocks. That process of actively "managing" money, while perfectly logical, got blindsided somehow by propoganda-the market returns 8% annually, stay in for the long haul, etc.
But today of course I can see the wisdom in what these women have known for centuries. If knowledge is money, many of us have forgotten how to use that knowlege - some of which is fairly primitive. People don't understand why I love going down there to see the market, and ask why we don't go instead to upscale places where the more stylized jewelry is, or where diamonds are sold.
I totally agree Robert. I was walking in the forest this morning, thinking: For me, this New Rule means that Knowledge is pure information and intelligence used in the right direction for my benefit and for others. Knowledge creates money and everything in our human way of living. Greetings, DA
I like the new concept. Money is where all the power lies in America. Despite other peoples opinion, if you don't have money in today's world then you don't exist. I would like some information on that stock technique that you mind mention of. I think that is a good idea.
Money can buy you knowledge-computers, books, seminars, but it can't buy you discipline, motivation, or trust.
If i read any positive news about any company that has strong financial statement, i would love to invest in it like next day or next minute because i know i would have higher return from that investment.
It is a broad statement to say teachers are not paid well in western society. In Canada, teachers are paid quite well. For example, my sister in law has eight years experience, teaches grade three students and gets paid $80k per year. If she taught older students, or was head of a department at a high school, she would be paid even more. Not bad for a job that gives four months holidays per year.
I would counter that underfunding of education is unique to the USA in the western world.
With the understanding of how money works one can create their own wealth. When you acknowledge your own weaknesses you can change your future and the future of your children. Knowing how the rich think will allow you to work on your own thoughts so that you can see things the way they do. Research the practices of successful businesses to better your own business.
These practices will increase your knowledge which in return will increase your money. That is what "Money is Knowledge" means to me.
In 1967 as a senior I opted to take a small class outside the college track. It was taught by an elderly teacher and it was all about using insurance, yes, how to balance a check book, but also how to form a small business. It was for those who might want to have a small manicure shop or begin a carpentry business. It was strictly E and S. It was a new world to me, none of it had ever come across my radar before. Unfortunately there were only five in the class. I don't know if it was ever offered again but the teacher was excellent. She was also very concerned that a lot of us were graduating financially unarmed. She was the last teacher, until I read { Rich Dad, Poor Dad} and I began to re-explore the entire concept of money, who gave me anything approaching a financial education. Even in college, only in my history courses did I begin to question what was going on. I had a teacher who encouraged us to go back and read primary sources instead of a canned version in an approved textbook. It opened my mind which is what reading your book is also doing.
While I agree the catch phrase 'money is knowledge' needs some explaining, it should be noted that knowledge is the deciding factor. Although will and discipline are also key, these might be related to self-knowledge. Also, people naturally have will and discipline to differing degrees, (although admittedly very low in many cases for the general population) but since knowledge, especially financial knowledge is not naturally occurring and may be completely absent it bears the emphasis.
We all know this is not a how-to book, and Robert does give a context pointing to the information age. And of course, if we want to be more specific there is a difference between information and knowledge, too.
And while I (and I think Gatto) would also agree that spending more on our educational (or schooling) system is not the key, when a thinking person has enough information it can lead them to seek out the right knowledge - if they are not biased in their view. It's a good point that if being an informed person made you rich the Poor Dad would be the rich one, although I think a lack of self knowledge prevents one from examining the beliefs regarding money and that can be a big block. Clearly there are many well educated, better informed people than those that follow Roberts work. But in spite of being more intelligent and well read, if they are not open to these ideas then we know something they don't. Frankly knowledge has to do with the truth, whereas information without understanding and an appreciation of its importance is ultimately of limited value.
CHAPTER 2
The chapter starts out with the idea that financial education should start in the schools. It also begins with the way the children are taught and the reasons the educational system has failed to teach our children how to think. I have read John Gatto's books and based on my own observations, I think he is right on. Anyone who is frustrated about why our schools are failing should also read "Less Than Words Can Say", by Richard Mitchell.
One of my local schools had a project to bring some financial knowledge to 11 to 15 year old students. I conducted one of the classes. It was based on an outline that I let my 12 year old and a 30 year old, self made business man look at. They both said their eyes were shutting before they finished the first page. Fortunately, I was allowed to throw the outline away and do what I wanted. The point is, the school would bring their same old failed formulas to teaching finance. As it stands now, the education system would only succeed in nailing shut the coffin on the children's interest in financial matters.
The LAST thing we need is more of the same kind of "education" on any subject but Obama is pushing for just that. What we need is LESS money spent on education by eliminating the bureaucracy from the system, having a system of "Right to Teach and Learn" not hampered by the enormous layers of bureaucracy, teachers unions and corporate interests. I could go on and on but there is more I want to write about the chapter. The best thing Obama could do, but it would only be a good start, is eliminate the Department of Education.
More to follow on chapter 2. Thanks Robert.
Is not a correct concept. Look at people who win the lottery, are they suddenly smart? No, by the basic fact that they are playing the lottery, the odds are that they will be broke again soon.
Spending money on our current educational system is also a losing idea. It is similar to giving the government money to do anything. The likely hood is that, regardless of what we spend on public education there will be little to no change in the outcome. You make valid points about government spending and socialism then accept the unfettered spending of $1,000,000,000,000 by the government just because there is some money for schools?
Robert you talk about shorting a stock. Well first off, you have to have the money in your account to cover at least half the shares you borrowed. Secondly you not only need the knowledge, but more importantly, you need the discipline to follow your trading system. You need the discipline to accept draw downs on your account. You need the discipline to exit when your system dictates.
To by a piece if real estate you need money. Even if you find a property you can buy with no money down, you need the discipline to find that property.
You need the will to take action. You need the knowledge to apply and the discipline to do the action correctly.
Equating money to knowledge is fraudulent. In that case your poor dad would be rich.
I will agree that we should fight the old adage that time is money. That, at its heart is trading your time for someone else's dollar.
Maybe you should also examine the use of the work money. I think, what people should be pursuing is not money but wealth.
I know you need a short phrase to highlight your idea, but this has to many flaws. Having money does not bring you knowledge. Having knowledge does not lead to having money. Even having financial knowledge does not lead to having money, though it may lead to you keeping a bit more.
It is a conceptual idea. Knowledge is always powerful as long as it is the right knowledge and based on ethical principles. Money is knowledge. This tells me that all we need is to know the rules by educating ourselves of what the rules of money are and then and only then can we take appropriate action. Creating money out of nothing can also possibly be considered a spiritual concept. Tapping into the vast resources given to us by our creator allows us to tap into a vast reservoir of knowledge via the subconscious mind and then translating this into thought and then into action in order to become financially successful and finacially literate is powerful. Teaching people that this information is availble and how to tap into it is crucial. It all starts with a thought, then an intent & then with action it becomes a reality.
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Hi! Robert, I read a book before that I even consider it as one of my treasures. the name of the book is " Richest Man in Babylon " it teaches how to keep money, to set aside a portion of it, for ourselves and not to spend it right away. and it is what our Social Security System and other Insurance Company are doing. the second thing I learn from it ( and it is based on a setting during the Agrarian Period. ) is to acquire Land, Herds, Crops Plantation, and other means that can bring money to your homes or to your pockets, and the last is; according to the Author during a public forum, the requierements to become a successful businessman is your; Youth, Knowledge, Passions, and Dreams. so, Money is Knowledge was used already by our forefathers a thousand years ago, and until now it is still apllicasble and effective. : )
Money is knowledge means a lot for me, thats why joined
an online University to learn this type of knowledge.
Because I am learned, apply knowledge is power.
And this is one of the knowledge I apply to.
Since I was a child, I was told to save my money for a rainy day. No one ever bothered to tell me what that meant. It would rain, and I'd run to the arcade or movies with my "rainy day fund".
I find myself angry when I think about my wasted "fortune". I have been working since I was 11 and always would trade a day of work for play just to have the money my friends could easily get from their parents. I grew up in a single parent household and my mother was far from educated in the ways of money. If someone, anyone would have took a few moments out to teach me how money worked, I am certain I would have made a small fortune by the time I went to college.
This is why I am eagerly trying to educate myself through this book and many others. I have spent 20 years in school and have never had a class that taught me how money works. I look forward to feeding my brain with this knowledge so I don't make the same mistake with my children. I want to be able to pass this knowledge to them, because I can't count on the schools to do it.
The more I read your books, the better I am understanding what you are trying to get across to us.
Money is Knowledge. You made $35k from borrowing from the market and cashing in your returns. Wow!!
It isn't about "having" $'s, it is about the "knowledge" of what to do and how to do it. I do get now that it is much riskier to be ignorant.
Until reading what you had to say about academic, professional, and financial education - I was thinking that in our society today, being a professional is not where success is. I now stand corrected and I very much appreciate it. You do not have to be a CPA, DR., lawyer, etc., to be a professional. You need the "knowledge" of the industry that you choose to gain your cashflow from. We need academics and financial to know "how" to handle the cashflow.
Thank you!!!
I agree 100% just would like to add a word "superior" so Money is superior knowledge.
That is extremely freeing concept if you think about it. I guess in order to beat the system, what we have to do is obtain knowledge that once used will produce financial results, that will get us closer to financial independence. Catch is, it has to be correct knowledge and applied at the time when windows of opportunities exists. That’s why I’m reading this book.
This is very true. I invest my money into VUL's and I keep myself updated with information. So far, right now, I consider this time as the Great Sale since the Great Depression, where everything is a bargain. My agent told me that I am just only one of two, who keeps on investing on the equities fund, while the rest of the people save their money into the conservative funds. The others save, because of fear of the present global crisis. And one day, when or if the crisis ends, I am projecting to receive twice my principal amount on top of the principal amount. The difference between the others and I is only one word: Information, ergo, Knowledge.
I agree with you, knowledge is very important in this rapidly changing information age. But it should be new updated knowledge not obsolete knowledge in order to make money. (For example the US dollar was a strong currency in a certain period, but now it is a gloomy currency heading to disaster.)
My understanding of this rule is that knowledge applied correctly can lead to profit. So far, though, I have always needed to invest some of my own funds (for example 10% in the case of property) ... I eagerly await the next chapter/s. The possibility of making money with no initial investment is fascinating.
This point reminds me of that Buckminster Fuller quote: "Don't fight forces, use them." Of course, the intelligent way of using forces is to understand how they work, and position yourself where you may benefit from their action, rather than just trying to acquire a lot of one type (perhaps by repeating one type of activity - what we call a job) directly and then use it exclusively. Someone in a nearby city recently robbed a person at gunpoint for ten dollars, now that is certainly very little return with a poor use of and limited view of force. The reality is there are all kinds of forces in the world that may be used, we just have to think outside the box to see how they might be used.
As much as I value your contributions to the financially uniformed; I have to say that I do not subscribe to that rule. I think that "Idea" is not an effective one because the "MIND" is the source of knowledge, power, money, etc. Money has no power, period. People's ideas, info, etc. about money give money the illusional power that the mind is responsible.
Strictly speaking, knowledge is money but money is not necessarily knowledge. After all, someone who has a lot of money but no knowledge ABOUT money may just spend it, the only knowledge it may buy is one very expensive lesson learned the hard way. Even if you used money to increase your knowledge, that is only as good as the quality of the information. Before you become knowledgeable the type of education you buy into is only as good as your knowledge at that time - which is perhaps based on little more than reputation and popular opinion.
Furthermore, although it makes the most sense to become knowledgeable about money itself in the long run, even other types of knowledge can make you money. The thing is the nature of knowledge (or understanding) make it more valuable than anything we have a limited supply of, and can help us increase those other things like money or time. (for example, a longer life span, or freeing up time from work so you can do other things you actually want to do) The fact that profit is made from other peoples time and money should tell us something about what is more important and more valuable. So even the old saying "time is money" really doesn't compare when you're talking about knowledge.
The issue is that many people see and view riches as evil. Indeed many wrongly quote the bible and say that money is the root of evil, whereas the bible says 'love of money is the root of evil'. Again people think that to be poor is blessed.
Honestly I agree with you. Money is knowledge and knowledge is power. However I just want to add that like anything in life money is valuable to the extent people give it value.
In the final analysis, I hope we all learn and learn fast
I really believe that money can be use for good and well as evil. I agree with money is knowledge because it how to use it make you rich. As scrooge McDuck would said, "As my dad would say, Work smarter not harder" to make money. I truly believe that if I know how money work and have it work for me then I will have financial security via financial freedom. So we have to think smarter when you how to use money and must leave human emotion to it. We must also have educational system that also deal with money matter. So end Knowledge is money and freedom.
I would say that this notion is correct, but I would also state emphatically that ACTION on knowledge is actually more important. That one knows how to short a stock, or build a website, or whatever, does not necessarily translate into that person taking the actions necessary to create wealth. I admit in my own case this has sometimes been true (due to fear of loss), and I know of others that have effectively confined themselves to a life of subsistence rather than a life of abundance because of fear.
One must have knowledge, but one must have the courage to ACT on that knowledge before it gains any value.