Rich Dad Poor Dad | S5 – E11 | Assets vs. Liabilities | Cash-flow Pattern of an Asset

Rich dad believed in the KISS principle—Keep It Simple, Stupid (or Keep It Super Simple)—so he kept it simple for us, and that made our financial foundation strong.

So what causes the confusion? How could something so simple be so screwed up? Why would someone buy an asset that was really a liability? The answer is found in basic education.

We focus on the word “literacy” and not “financial literacy.” What defines something to be an asset or a liability are not words. In fact, if you really want to be confused, look up the words “asset”

Rich Dad Poor Dad

An asset puts money in my pocket. A liability takes money out of my pocket.

and “liability” in the dictionary. I know the definition may sound good to a trained accountant, but for the average person, it makes no sense. But we adults are often too proud to admit that something does not make sense.

To us young boys, rich dad said, “What defines an asset are not words, but numbers. And if you can’t read the numbers, you can’t tell an asset from a hole in the ground.” “In accounting,” rich dad would say, “it’s not the numbers, but what the numbers are telling you. It’s just like words. It’s not the words, but the story the words are telling you.”

“If you want to be rich, you’ve got to read and understand numbers.” If I heard that once, I heard it a thousand times from my rich dad. And I also heard, “The rich acquire assets, and the poor and middle class acquire liabilities.”

Here is how to tell the difference between an asset and a liability. Most accountants and financial professionals do not agree with
the definitions, but these simple drawings were the start of strong financial foundations for two young boys.

Rich Dad Poor Dad: S5 – E3 – The Beginning to Using the Mind

Being a product of two strong dads allowed me the luxury of observing the effects different thoughts have on one’s life. I noticed that people really do shape their lives through their thoughts.

For example, my poor dad always said, “I’ll never be rich.” And that prophecy became reality. My rich dad, on the other hand, always referred to himself as rich. He would say things like, “I’m a rich man, and rich people don’t do this.” Even when he was flat broke after a major financial setback, he continued to refer to himself as a rich man. He would cover himself by saying, “There is a difference between being poor and being broke. Broke is temporary. Poor is eternal.”

My poor dad would say, “I’m not interested in money,” or “Money doesn’t matter.” My rich dad always said, “Money is power.”

Although both men had tremendous respect for education and learning, they disagreed about what they thought was important to learn. One wanted me to study hard, earn a degree, and get a good job to earn money. He wanted me to study to become a professional, an attorney or an accountant, and to go to business school for my MBA. The other encouraged me to study to be rich, to understand how money works, and to learn how to have it work for me. “I don’t work for money!” were words he would repeat over and over. “Money works for me!”

At the age of nine, I decided to listen to and learn from my rich dad about money. In doing so, I chose not to listen to my poor dad, even though he was the one with all the college degrees.

The next morning, I told my best friend, Mike, what my dad had said. As best as I could tell, Mike and I were the only poor kids in this school. Mike was also in this school by a twist of fate. Someone had drawn a jog in the line for the school district, and we wound up in school with the rich kids. We weren’t really poor, but we felt as if we were because all the other boys had new baseball gloves, new bicycles, new everything.

Mom and Dad provided us with the basics, like food, shelter, and clothes. But that was about it. My dad used to say, “If you want something, work for it.” We wanted things, but there was not much work available for nine-year-old boys.

“So what do we do to make money?” Mike asked.
“I don’t know,” I said. “But do you want to be my partner?” He agreed, and so on that Saturday morning, Mike became my

first business partner. We spent all morning coming up with ideas
on how to make money. Occasionally we talked about all the “cool guys” at Jimmy’s beach house having fun. It hurt a little, but that hurt was good, because it inspired us to keep thinking of a way to make money. Finally, that afternoon, a bolt of lightning struck. It was an idea Mike got from a science book he had read. Excitedly, we shook hands, and the partnership now had a business.

Interviewee #18 – Soheir Ghanem on All Things E-Commerce

Soheir is the host of the eCommerce QueenBOSS podcast, a public speaker and a Fashion eCommerce entrepreneur. 

Through her podcast and programs, she helps creative entrepreneurs to build an eCommerce business that sparks passion, and creates wealth in their lives, so they can share their gifts with the world, even if they’re just starting out or have no marketing knowledge.

She specializes in Consumer Psychology and Experience Marketing.  Here are the show notes, links, and other things.

Podcast

Get in touch with Soheir Ghanam from France

– All the things about eCommerce.

Links:

 

Things we discussed:

  • Introduction of Soheir and how Soheir started.
  • What are the types of e-commerce?
  • E-commerce has different business models.
  • Customers will be your unique selling points.
  • Team building and brand building.
  • Customers and employees retainment.
  • What is the shortcut for a beginner who wants to sell on their website?
  • Consider your preferences and your goals.
  • The necessary tools that you need based on your preferences.
  • WordPress and plugins.
  • The challenges of learning curve for non – techies and the ROI on learning curve.
  • Social learning on platforms such as Facebook and Instagram. Their differences are huge.
  • What is Soheir’s opinion on Facebook advertisement?
  • Content is king and video craft and editing is important.
  • What is the 3 important features for a beginner’s website?
  • Loading of the website, graphic designing and design of the layouts are important.
  • Who are you trying to reach for your products?
  • Is email marketing effective?
  • Are newsletters are effective?
  • Personalisation of your newsletters.
  • Landing pages.
  • Branding has a variety.
  • Do different platforms like personal website, Shopify and Facebook have its advantages and disadvantages?
  • Talking about hidden fees in Shopify.
  • You need to brand yourself for being legit.
  • What Soheir’s insight on Instagram influencer marketers?
  • Seek information about an Instagram influencer marketers’ numbers of followers and people who follow them.
  • A monthly marketing budget is important.
  • Get some references from others about Instagram influencer marketers and do your research about them.

 

Thank you for listening!

 

Thank you so much for joining me for this podcast. Please do write down some feedbacks and comments. Please do share this podcast to your social media.

 

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