A Real and Honest Review of Retire Young Retire Rich by a Filipina
“When you are young, work to LEARN and not to EARN.”Robert Kiyosaki
In this episode, I’m going to share with you my thoughts about the book called “Retire Young Retire Rich” written by Robert Kiyosaki together with Sharon L. Lechter. And most importantly, what are the things that I learned from the book that I can apply in real life.
Retire Young Retire Rich is undoubtedly one of my favorite financial books, not only because it is written by the best financial advisor of our time, Robert Kiyosaki but most importantly the knowledge that you can learn from the book is so massive. I really do mean when I say massive. In real life, there are tons of vital information that we will really never going to learn from the school system no matter how expensive and popular the school or university is. It’s just not going to happen, simply because it’s not part of the curriculum. One of those highly informative things that we’ll need to learn outside the education system that I’m talking about is financial education.
2018 when I decided to read this book. The book has been sitting on the shelf at my husband’s office. And I never bothered touching it, until July of 2018. That was when we went out for a couple of weeks on vacation at my in-law’s French house in the south. I decided, why not bring this book along with us on the trip? But before I continue on, I would like to share a little story on how our family got into Robert Kiyosaki’s philosophy in terms of financial education and investment. So it started with my husband. When he was 21 years old, his father took early retirement so he can live the life that he’s been dreaming of. And during that time, his father gave all of his 4 children, including my husband, 4 copies of Rich Dad Poor Dad written by Robert Kiyosaki. Since then, my husband became more interested in Robert’s advice in terms of investment, particularly in real estate. When my husband and I met, that’s how I learned about Robert Kiyosaki and his books.
Retire Young Retire Rich Summary
It was a life story of Robert Kiyosaki and his wife Kim Kiyosaki, together with their best friend Larry Clark on how they started a plan to retire in 10 years.
It all happened in 1985, three of them were on a mountain in Whistler, Vancouver for a ski vacation. Back then, they were in their 30’s and were working very hard. So they thought of why not retiring as soon as possible.
On that day, they came up with a plan so that they all retire together in 10 years. In 1994, Robert and Kim retired while Larry in 1996.
The book is mainly a simple plan of three people on how to get out of the rat race, to finally getting into retirement.
As Robert Kiyosaki said, it wasn’t the most pleasurable story because they also went through a financial crisis from 1995 on. They were homeless and jobless for months but they kept on fighting.
After going through all the process of learning, struggling, failing, and finally succeeding, after 9 years they became financially free for the rest of their lives.
What did I learn personally from the book?
1. How to work less and earn more?
3 Different Types of Income:
- Earned Income, Portfolio Income, Passive Income
First, let’s talk about the Earned Income. Earned income is you and I working for money. It is the income that comes in the form of a paycheck. It is also the type of income you ask for more of when you ask for a raise, bonus, overtime, commissions, and tips.
The next one is Portfolio Income. Portfolio Income is generally income from paper assets such as stocks, bonds, and mutual funds. The vast majority of all retirement accounts are counting on portfolio income in the future. It means a lot of the baby boomers and young generation like Millenials are and will be relying on their retirement from portfolio incomes.
And lastly, we have a Passive Income. Passive income is generally income from real estate. It can also be royalty income from patents or for use of your intellectual property such as songs, books, or other objects of intellectual value. This is the type of income that Robert promotes because you are leveraging most especially your time. Like what he always says, “You earn money while you sleep.”
2. Content and Context – The contrast between the content and context.
One good is example is the water in the glass.
The water is the content. While the glass is the context.
According to Robert, Contexts are the rules or your reality or the culture you come from. For example, when you say, I’ll never be successful. That’s a contextual statement. It means, whatever you think is real becomes your reality. Robert also said that if we say the example statement, we will really never going to be successful until we change our context or subconscious. We need to be willing to expand our context as well as add our content.
What is content? Content can be your skills, talent, knowledge, and ideas. Robert always says that we should never stop learning something new. A new skill or hobby for example.
Robert also believes that the issue with the school system is that it doesn’t give us the skills to survive on the street and on the real world.
3. The secret to retiring young is to not get a job.
I know this sounds crazy but this was an eye-opener for me too. He said that the faster you don’t have a job, the faster you retire. Robert’s context is that he doesn’t want a job. He doesn’t say a job is bad or you have to quit your job now. He just says he doesn’t want job security because when you have a job, your mind stops working because you’re always expecting a paycheck at the end of every month. That means you are in the rat race.
Most parents like mine taught us to have a job after studies. They say that education is very important to land a secured job. And the school system itself teaches our kids that in order to get financial success we need to study hard, get good grades, and find a secured job. For me, we can’t blame our parents for that because they were also trained that way. But we can do something for ourselves to change how we improve our lives and that’s through learning new things, skills, and investing in your personal development.
Here’s what Robert says about the characteristics of Rich People. He didn’t say that Rich people have finer skin, looking better than the middle class in terms of physical appearance, or they were born from richer families. The truth is:
- The rich have integrity.
- They make or hold their wealth in real estate.
4. Leverage is Power
Rich Dad told Robert that “Humans have gained more of an advantage over animals because humans naturally seek more and more leverage. In the beginning, animals could run faster than humans, but today humans can travel faster and further than animals because they created tools of leverage, such as bicycles, cars, trucks, trains, and planes. In the beginning, birds could fly and humans could not. Today, humans fly higher, further, and faster than any bird.”
He also added that leverage is everywhere. We can leverage our time, health, skills, talent, relationship, and many more.
So the book, Retire Young Retire Rich is really about how to get wealthy quickly and keep your riches or what they call generational wealth. If you want to learn more about these things, get a copy of the book online or listen to the audiobook. I find the philosophy in this book really resonates with my belief in making the best version of myself. If you have read this book, please share your thoughts by commenting down below. I look forward to hearing from you guys.
“Talk is cheap. Learn to listen with your eyes. Actions do speak louder than words. Watch what a person does more than listen to what they say.”Rich Dad