Thirsty to be a Rich Woman? Here’s how!
Rich Woman: A Book on Investing for Women
by Kim Kiyosaki
Reader: Paulina
Method of Reading: Audiobook
Rating: 5 out of 5
Golden Nugget: Just do it! Half the battle when it comes to investing is just starting.
Why a book for specifically women? Kim says, and we’ve all probably noticed this in our relationships, because when it comes to money men and women think differently. But investments don’t care if it’s a male or female buying!
This book was a great read and I took away so many points but can only mention a few. I would definitely recommend reading Rich Woman and I also recommend reading Robert Kiyosaki’s ‘Rich Dad, Poor Dad’ which Kim helped to write.
Many woman are afraid to step up to the plate when it comes to investing. They let the man in the house take care of it, saying they don’t know what they’re doing or they don’t have time. But when you say you don’t have time it just means that your current priorities or day-to-day activities are more important than the additional activity you’ve suggested.
Kim and many other successful male or female investors say in order to become a successful investor you have to ask yourself the following questions:
- What is your why? What is your personal reason you want to attain financial freedom?
- What would you do if you didn’t have to work? If you didnt have to worry about money?
- Deep down, what is your core reason? Your innermost heartfelt reason?
Ask these questions to yourself again and again, going deeper until it’s crystal clear. Over the last year I’ve been asking myself as well. I would like to be financially free so that I can have my time back to spend on my family, relationships and feeding my soul. In the last year I spent a lot of my time at work, and there’s nothing wrong with that as long as I’m being mentally challenged, enjoy my coworkers and supervisors, value the mission of the company and am getting compensated well according to the value I provide the company. Work was not the problem, the problem was all the aspirations I had outside of work that I wasn’t able to do enough of. I wasn’t feeding my soul and work wasn’t filling the void. I wanted to cook more for myself and others, I wanted to be involved in the yoga community, lead Fort McMurray’s strongest female book club, volunteer more often, spend more time with my nieces and nephews, write a children’s book, play competitive volleyball, be an executive board member with Fort McMurray Search and Rescue, continue buying rental investments because I love designing and decorating, start a business with my partner in crime, and be supportive and available to the people I care about. Sounds like a lot to do between Mon-Fri 5pm-10pm and having only weekends off. Maybe I wanted to do too much. Some people say I’m exhausting myself and spreading myself too thin. But I’m really happy doing everything I want to do and making the most of this life of mine.
A funny but relatable analogy Kim makes in her book is between men and investments. There are three types of men and three types of investments:
“The Bad Boys: They’re exciting, enticing and irresistible to women; they are not boring and hold your attention. Don’t be surprised if they can break your heart, dad doesn’t want you to date them. They challenge you, are unpredictable, and you have to keep your eye on them. They’re unforgettable, like a love-hate relationship.
The Nice Guys: They’re our friends. Everyone likes to be around them and you can talk with them. They’re comfortable to be around, they listen, you rarely get into fights cause you can talk it out. They’re predictable and safe, no headaches, polite and respectful. They won’t kiss you on the first date.
The Wimps: You wanna shake life into them! They’re dull and the date ends early. They don’t accomplish anything great, don’t take a chance, want everything nice and steady. No surprises, everything’s to risky to them. They just exist!
Bad Boy Investment: These you don’t want to walk away from because they might not be there when you come back. They’re challenging and you have to pay attention. Stay on your toes! They’re very involved, unpredictable. They’re more work but offer the greatest rewards if you know how to handle them!
Examples: Day trading stocks and stock options, a 50-unit property that is rundown and bad tenants, active investments.
Nice Guy Investment: They’ll never hurt you too much. They don’t need as much attention but you can’t leave them forever, they need to be in communication with you so they know you care. There isn’t as much risk of them burning you.
Examples: Long term stocks and stock options (6-months), real estate or lending to a friend who is property investing, buying raw land, gold and silver.
Wimp Investment: They’re boring, they don’t do anything. You can ignore them forever and nothing will change. No risk and you don’t have to pay attention to them. Actually that’s what they want, not to have any attention. Almost no risk but little to no reward as well.
Examples: Mutual funds, RRSPs, high interest savings accounts and passive investments.
In summary, an investment won’t leave you for a younger, prettier investment, an investment won’t talk back, and you don’t have to worry where your investment is at midnight.”
What woman doesn’t want a good investment? But if you want to be financially free, you have to be an active investor. Passive investments have minimal to no interactions and pass the control to someone else.
Kim’s nine investment keys:
1- Arm yourself with some education. The more you know the better you’ll do. Get a little education, then into the game.
2- Start small and expect to make mistakes. Don’t be afraid, you WILL make mistakes. By starting small you can get real life experiences, purchase multiple investments and see what performs best for you and peaks your interest most.
3- Put a little money down. Until you have money on the line, you’re not in the game. Up to that point it’s all theory. A little money = a little risk, a lot of money = a lot of risk.
4- The grass is always greener on the other side. Stay close to home. Stay with what you know. Whether starting out or a seasoned investors. Don’t hop on a hot tip. The opportunities are right in front of you you just need to realize them.
5- Set yourself up for success. Don’t discuss with people who aren’t in the same game. As soon as you see money, then you start to build confidence for your next investment.
6- Choose your circle wisely. The people around you who support your goals. Be careful who you tell your goals to. You don’t need other people’s negative comments to add to the noise. Surround yourself with people who will sincerely support you and want to see you achieve your goals. Share with like-minded people. Seek people who want to learn and grow. You may see yourself hanging out with new friends. Find a mentor. When the student is ready the teacher will come. Look into all-women investment STUDY groups – women learn well from other women. Only intake people who are serious about learning about investing, run meetings professionally, have high standards of the members
7- Give me the answer. Investing is a process and financial independence is a process. There’s no get rich quick way.
8- Always keep learning. Keep up with the changes, get ahead of the changes or get passed by the changes.
9- Have fun! Celebrate every win. Acknowledge your successes, even small ones, whether emotional or tangible.
How do you not get overwhelmed with everything you have to do?
BE – DO – HAVE
“Be is your being, who you are. Do is your doing. Have is what you have. Who you are and what you do makes you what you have.”
Kim suggests to focus on what you want to have. What you want to have is a stronger motivator then what you have to do.
So although the title of the book may sound shallow and we’ve done a lot of “money talk” we do realize that money is not the most important thing in life. But also realize that money affects everything that is important, like your level of health care, the education you can afford, and overall quality of life.
