Rich Dad Education Blog

Evolution has been a controversial word over the years, though not in the context in which it is used here. Its use for our purposes has a much simpler, inspirational meaning. When we discuss evolution this year, we are simply talking about the process of passing from one stage of development to the next. Specifically, each of us needs to take steps to evolve to the next level of understanding with regards to our personal financial literacy.

There are numerous examples of our current state of financial literacy that point to the need for this evolution to occur. While one could cite any number of studies which point to financial illiteracy amongst people young and old, it doesn’t really tell you where you are right now. One needs to look inward to evaluate where he or she is on this path, which is all the data that the individual really needs.

Evaluation

When beginning any personal evaluation, I am always reminded of the famous quote attributed to Socrates, “As for me, all I know is that I know nothing.” Too often individuals approach subjects with false confidence, full of preconceived notions that only hamper their growth. We need to transcend this mindset in our evaluation of where we are in our understanding of financial matters. When answering the following questions do not be afraid to admit what you don’t know, as we all begin as a blank slate.

Do you understand the difference between cash flow and capital gains? What is your level of knowledge on the specific real estate strategies that you can apply? What real estate strategies apply to your specific market currently? Can you recognize the trend and current support and resistance levels on a stock market chart? If a deal presented itself tomorrow, do you have the knowledge necessary to complete it? Are you comfortable with your interpersonal skills in dealing with others? What twist is needed in applying traditional strategies to today’s economic climate?

These are just a few of the many questions that you can ask yourself during this evaluation. Some of these areas will be pertinent to your goals and plans and some will not be. For those who have a personal coach, mentor, or advisor, spend a few minutes asking them for their feedback on what they think your strengths are and areas you could focus more on. If you currently do not have these valuable resources, talk to your partner, club group, or like-minded friend. Get feedback and assistance in making this evaluation and make careful notes as you will want this information when implementing your educational plan.

Whatever you do, I cannot stress enough that it is important to carefully analyze and honestly acknowledge where you are today. An evolution cannot occur if you are not honest and forthright with yourself. It will give you great pride in the months and years ahead to look back at the growth you made from this point.

Education

The likely outcome of most of our evaluations is that we will see the need to acquire more knowledge in the coming year. Even those that have acquired a vast amount of factual knowledge will recognize the need to stay up to date in changing economic times. After your evaluation you may need to spend time on one or more of the following educational areas in the following year: factual knowledge and application.

The starting point in any educational process is knowledge of facts, concepts, and terminology. It is important that we understand the material that we read, discuss, and wish to apply in our business ventures. This factual knowledge plays an important part in our understanding of basics and is a beginning point in our education. For those starting out, this area needs extra emphasis in the beginning so that you can make intelligent decisions in the second area, application.

The second level is learning how to apply this knowledge in the real world. It does not matter how smart or educated we are if we do not know how to apply that knowledge in real-world settings. One of the strengths of Rich Dad education lies in its coaches, mentors, and trainers that have years of practical knowledge that they can impart to students each day. These individuals help guide students through the potential pitfalls and mistakes that we might encounter. While this type of guidance is extremely difficult to find in the everyday world, its role in ones success is invaluable.

So do the extra things it takes in coming months to help you evolve on your path. What book is on your nightstand? It better not have Fabio on the cover. Do you have time set aside to study each night? I know Seinfeld is funny, but he isn’t leading you to the Promised Land! Are your closing and presentation skills lacking? If so, what are you doing to work on them? Look in the mirror and practice. Many of us used flash cards to memorize facts back in our school days. If it helped you then, it will likely help you now. Pull out any trick or technique that worked for you in the past. Learning and bettering yourself are noble activities in which none of us should be afraid to engage.

Dedication

The process of taking yourself from where you are today to where you want to be is not likely to be smooth and easy. There will be days when you are unmotivated and want to be lazy. There will be days that you encounter learning blocks where concepts seem to evade your understanding. There will be days that you lack faith in yourself and feel that this path just wasn’t meant for you. In each of these moments, simply roll your eyes to the back of your head and say, “Evolve.”

No matter what happens with our national economy, there will be people who thrive, and who very much enjoy their prosperity. These are the people who refused to fail, who didn’t give up, and who surround themselves with like-minded people traveling the same evolutionary path. There is no reason you can’t be one of them, and we at Rich Dad education will do our part to help.