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Intro: Retire Young Retire Rich – How to Get Rich Quickly and Stay Rich Forever – Written by Robert Kiyosaki This book talks about getting rich in terms of money. It is an older book but the lessons are worth the time. Forbes magazine defines rich as income over $1,000,000 per year and ultra-rich as income of $1,000,000 per month. One key aspect of the book chats about the inverted pull between Freedom and Security. These two things actually can work against each other in our minds but once financial freedom is achieved then security is a no brainer. The problem is that people seek security in their jobs before financial freedom and become trapped.

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Why is this important to me? Being financially rich takes work and education. I believe most people are interested in the subject but very few make it a true study. Think about lottery winners and professional athletes that get multi-million dollar contracts. Where do they typically end up in 10 years? They end up broke. It is painful being without financial resources but it is really painful having it and then losing it all. This book is important because it will outline how to get it and how to keep it. Riches and money need to be studied just like reading, writing and arithmetic. You study these subjects from Kindergarten through graduation and then in to college. How much time is spent on financial education? If you look at the curriculums of school then you know that next to nothing is spent on the subject. Worse than that, we expect people to provide services in the economy when they are financially illiterate. This is a real problem, but with some invested time, can easily be remedied.

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This book is broken down into 4 sections and for the sake of time, I will briefly

examine each.

1. Leverage of the mind – This book talks about retirement and a small section talks

about boredom once you retire. This is VERY important. The 4-hour work week

written by Tim Ferris really digs into this concept. He chats about taking mini-

retirements instead of having a grand vision of doing nothing once you are 65.

This really needs to be considered. The statistics for early death at retirement is

staggering. The human mind is either growing or dying – there is no in between.

Food for thought here: “My personal goal is to be able to make the decision NOT

to work as opposed to retirement.” This goal does not mean I will stop working.

Once achieved, it affords me the opportunity to do whatever I want.

2. Yin & Yang – There is perceived inverse relationship between security and

freedom. 90% of the working population are following the wrong advice. This is

the little voice inside their head that says – “I can’t be rich, “I can not risk losing

my job”, “I can’t lose my medical benefits” or “I have no choice………” These

perceptions are all made up in the mind. They are only true if you decide to give

them focus. This is perceived Security where in reality, it is more like corporate

prison. This mind set needs to be changed and you simply need to give some

dedicated time EACH DAY to eliminate these excuses. A great quote sums this

up:

“Those who desire to give up freedom in order to gain security will not have, nor do

they deserve, either one.” – Ben Franklin

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Leverage is power. It simply means doing more with less. OPM/OPT/OPE

Utilizing other peoples time, money and expertise is by far the quickest way to

mastery of any skill. Financial freedom is no different. Leverage of money can be a

double edged sword and needs to be respected. As you know, the idiots in our nations

investment banks leveraged Billions of dollars to make millions in short term profits.

This is how the 2008 financial crisis happened. My point here is to respect the power

of leverage.

According to Robert, if you want to be rich then you need to know the differences

between good debt and bad debt; good expenses and bad expenses; good income and

bad income; good liabilities and bad liabilities.

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The type of income you work for is a key to keeping more of your money. There are

three types of income: Earned, Portfolio and Passive. Think of them as follows:

Earned is 50% money. This is W2 or JOB income. The government will take half in

one form or another.

Portfolio is 20% money. This is capital gains on stocks, real-estate (house flipping)

and other types of asset sales. Right now it is actually 15% money but given the US

debt, it will probably go up.

Passive income can be - 0% money is the best type you can work for. This is where

your money works harder than you do. This can happen as Tax deferred or Tax free.

Thus you do not have to work any HARDER, you just need to re-orient yourself to

work for other types of income besides your JOB.

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Are you familiar with ratios? Don’t worry, you do not have to be a numbers geek to

understand these very powerful tools.

People today who are only working are trading dollars for hours. Typically the ratios

here are low. Minimum wage is around $7.50 per hour. Thus the ratio is 1:7:50 or

what ever your hourly rate is. What if you focused on different ratios like the ones

above.

These ratios are what Robert uses in the book and they mean:

1. Ownership in 5 businesses

2. Had 300 workers working for him.

3. Had 450 tenants paying rent

4. Had 6 million in cash

5. Owned 2 million shares in different companies.

The key here is not what the numbers of Rich dad are but YOUR NUMBERS. When

I started, my numbers sucked. The key is to start tracking and building them up. This

will change your mind set and your future. Remember………. Where focus goes,

energy flows.

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Retire Young is a good book that really dives into the mental side of financial

education. This is really important because your mind set is your reality.

I hope you have found this short video summary useful. The key to any new idea is to

work it into your daily routine until it becomes habit. Habits form in as little as 21

days.

One thing you can take away from this book is mental leverage. There is nothing

more powerful than the power of associations. Seek out mentors and spend time with

them. If you want the best ones then seek them out virtually. YouTube, Google and

the internet are the easiest ways to associate with world class people even if you do

NOT know them.

If you enjoyed this video then please do not hesitate to pass it along and if you want

more detail then click on the link below and purchase Robert’s book - “Retire Young

Retire Rich” Thanks for watching and have a great day!