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One Year Ago

by SMD 


This week at my work they are having the annual United Way fundraiser book sale. The reason this is noteworthy is that it was at this sale one year ago that I picked up my first Rich Dad book [Rich Dad's Guide to Investing] for $1. So this anniversary caused me to reflect on what at the time seemed like a relatively minor event.

As soon as I began to read the book I realized that the approach really hit home for me. The emphasis was on examining the roots of my relationship with money and my beliefs around work and money in general. In short the reason I did not have abundance in my life was that I did not create it; neither with my beliefs nor my actions.

Rich Dad’s books have allowed me to become aware of the fact that I had lived my whole life in a comfort zone and that has caused me to manifest financial illiteracy, in short a poverty consciousness. Since I have taken Robert Kiyosaki’s words to heart, I’ve been able to examine my limiting beliefs and move beyond them. I was stuck in believing that I had to do everything myself and in always being in control, but now I realize that partnerships and moving beyond my previous patterns of business behaviours are essential to growth.

Currently, I am reading Robert’s Rich Dad’s Guide to Becoming Rich Without Cutting up Your Credit Cards and there is one section that I really love. It is when Robert has just gone from being a paper millionaire to being over one million dollars [real dollars not paper] in debt. Rich Dad tells him that not many people are capable of making a mistake of that magnitude, but the best part is that Rich Dad does not indulge Robert’s instinctive reaction, which is to when making a mistake to lie, blame, deny or pretend it didn’t happen. Instead Robert’s Rich Dad forces him to accept complete responsibility for the result of his financial train wreck. Rich Dad considers that the key to growth.

I’ve written about my examination of the reasons for my financial mistakes in Why I’m Not Rich and  Paying the Price but as I take a couple moments to reflect on the differences in my life financially in the past year, it is pretty dramatic.

Total gross earnings: October 2004 = ~ $ 3560
Total gross earnings: October 2005 = ~ $ 8300

In the past year I have started a business that is truly creating income in the business quadrant rather than the self-employed or employment quadrant which is a huge step for a life-long control freak that was destined to be trapped in the wrong side of the cash flow quadrant.

More important milestones include admitting my limitations by joining the Freedom Investment Club, because I recognized that they were better investors than I am [what a relief]. That decision has made me several thousand dollars in 6 months and had many other educational spin-off benefits. And, consulting a certified accountant to help with the incorporation of my business structure was another very positive step beyond my comfort zone. These are things that I would never have done without the influence of Robert’s teachings. That Rich Dad book that I bought has to go down as the best $1 investment of all time.

Overall the most striking difference is in my relationship with money. I used to be stuck in a world of lack, because I believed that the only way to make money was to trade it for my time, but now I am beginning to shed that thought pattern and the money is coming to me much easier. There really are many ways to make money and it is our own limitations that determine how it will happen. If you’ll take responsibility for these limitations then you can move past them, into a new, lighter relationship with your money and your work.

Take care,

Jon

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Comments

2 Responses to “One Year Ago”

  1. Jscott on June 13th, 2007 2:29 am

    Great update smartmoney guy. In the trenches man. Keep on rockin in the free world.

  2. » Carnival of Personal Finance #21 on August 29th, 2009 8:52 am

    [...] Jon of Smart Money Daily looks back a year and reflects on how buying his first Rich Dad book and applying Robert Kiyosaki’s wisdom has led to a more than 10…. [...]

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