The Way Out of the Rat Race and Creating a Thriving Business and Passive Income
The term “rat race,” or “מרוץ עכברים” in Hebrew, first appeared in the 1930s and gained popularity in the 1970s to describe the grueling, long-hour work experience with minimal satisfaction that many people face.
Why Does This Happen?
In his bestselling books “Rich Dad Poor Dad” and “Cashflow Quadrant,” Robert Kiyosaki argues that the rat race is a product of our education system, which teaches us to work hard, get good grades, and fit into stable and secure careers. Kiyosaki believes this approach leads many people to remain stuck in a cycle of debt and limited financial success due to the fear of ending up with nothing. According to him, the only way to break free from these constraints is to adopt a new way of thinking about money and wealth. He suggests several methods to escape the rat race, including investing in income-generating assets, building a business, or investing in real estate, and developing financial education and abundance thinking. This can be achieved by setting goals, developing unique skills, and leveraging the “burning passion” within you to read, learn, and connect with new opportunities that lead to escaping the rat race.
Tips to Change Your Thinking About Money and Wealth
Learn How to Make Money Work for You: In his book “Rich Dad Poor Dad,” Kiyosaki states, “The poor and the middle class work for money; the rich have money work for them.”
Differentiate Between Income-Generating Assets and Non-Generating Assets: Understand the difference between assets that generate income and residential assets that do not generate income unless they are sufficiently high-quality to offset their costs. Rental properties are considered income-generating assets as long as they can produce passive income that exceeds their operational and financing expenses.
Focus on Acquiring Income-Generating Assets: “Want to get rich? Focus your efforts on acquiring income-generating assets after thorough research to ensure it meets the criteria of an income-generating asset. Meanwhile, keep your commitments and expenses low to increase your income” (Kiyosaki).
Seek Your Own Businesses for Passive Income: Explore creating your own businesses that generate cash flow and passive income, such as digital online businesses. Start small and be patient.
Starting Small and Building Gradually
In his book, Kiyosaki shares his experience of starting small and gradually building his success and wealth. He explains that a major mistake people make is trying to get rich quickly due to impatience. Impatience leads people to make high-risk investments or start businesses hastily without proper planning. Strategies for quick wealth are often doomed to failure and financial loss.
Kiyosaki encourages starting small and gradually building your business. He asserts that with incremental and measured steps, such as investing in low-risk assets or starting a small business with minimal capital, you can build success and financial wealth over time.
Patience and Risks
Kiyosaki emphasizes the importance of patience in the pursuit of financial success. He argues that building wealth requires time, effort, discipline, and dealing with obstacles and challenges. Maintaining patience allows for gradual building, making appropriate and measured decisions to meet your financial goals.
Another significant component alongside patience is understanding that the process also requires taking risks. In “Rich Dad Poor Dad,” Kiyosaki highlights the importance and necessity of taking calculated risks to achieve financial success. However, he does not support reckless or impulsive risk-taking and instead advocates for carefully considered risks.
He notes that many people fear taking risks due to the potential for failure and financial loss. Nevertheless, taking calculated risks is essential for financial breakthroughs. By taking risks, you can explore and assess new opportunities, learn from mistakes, and gain knowledge and experience to help increase your success and wealth.
Calculated Risks
Kiyosaki suggests calculated risks such as investing in stocks, starting a business, or purchasing real estate. While these ventures involve risks, with thorough planning and preparation, the risks can be minimized, and the potential rewards can be substantial.
It’s Time to Break Free from the Financial Rat Race, Thrive, and Create Passive Income for Yourself!
