The current economic recession has had a tremendous negative impact on this country. Few among the shrinking middle class would disagree with this assessment. The gap between the rich and the poor is widening more and more. Jobs are scarce, recovery is a joke, and the outlook leaves much to be desired. So what can you do? Are there answers to these problems? Let me take the opportunity to share some recession tips I culled from one of America’s top financial gurus.
Robert Kiyosaki, author of books like Rich Dad Poor Dad, Conspiracy Of The Rich, and many others, has been offering alternative views of wealth creation for years now. His philosophy of entrepreneurship may be summarized as a departure from long-held views about money and exploring how financial education plays a crucial role in how people succeed or fail financially. He has long been about the business of demolishing the sacred cows of the financial status quo.
In a more recent mini-documentary, aptly titled Shooting the Sacred Cows of Money, Kiyosaki discusses the role of public education at perpetuating outmoded views of money and personal finance. There are two types of education in the school system. Primary education includes reading, writing, and arithmetic – all very necessary skills. Then you enter secondary education that focuses on specialization in certain areas like law, medicine, technology, or some other field. Little attempt is made to provide credible financial education beyond balancing a checkbook or opening a savings account.
Such issues are compelling when so few people are competent to manage their finances – let alone prosper. Certainly, the recession isn’t helping, but I think there is reason to consider some of the following tips to better your chances of succeeding.
Develop a financial statement – Once you recognize the value of a strong financial education, you should create your personal financial statement. These include both income statements and balance sheets. Such tools, when evaluated by professionals like financial managers and bankers, can help you figure out your level of financial knowledge. You will know whether you can make smart decisions about your money or not. It’s like a financial report card.
Overturn popular thinking – The whole trend of education is to prepare people for the workforce. Kiyosaki says it is training them to be employees who work for the rich. In fact, you’ll see two types of people. Those who learn only to be employees – thus, dependent on employers – or those who have a level of street smarts that lets them explore other opportunities for creating wealth. This second group includes entrepreneurs and others who want to work for themselves. Given the state of the economy and the number of traditional employees who’ve lost their jobs, those with street smarts, or those who have greater financial knowledge may be better suited to succeed.
Get financially educated – Financial education can seem as challenging as learning a new language. When faced with the details of real estate, stocks, entrepreneurship, commodities, oil and gold you can get over your head rather quickly. Yet, financial education offers a key to unlock a new world of opportunities. You must take steps to improve your understanding of these various concepts.
Get out of your personal rut and use these recession tips to plot a new course to financial security. Don’t wait for someone to give you hand out or take care of you. You must take action immediately. Destroy your own sacred cows and start seeking real change for the better. It is the only way to improve your financial future.