The Importance of Acquiring Business Literacy Early and Its Future Applications

“Take risks, be bold, and let your genius convert your fear into power and

brilliance,” a quote by Robert T. Kiyosaki, the author of one of my favorites books of all

time–Rich Dad, Poor Dad. This quote highlights that in the real world, by solely being

smart you won't get ahead–you need courage and the willingness to step outside of

your comfort zone. In an understandable and effective way, Kiyosaki conveys the

significance of acquiring business literacy early on, and how it can tremendously

change your future horizons.

Rich Dad, Poor Dad tells a real life story about Kiyosaki’s childhood experiences with

two father figures. The “poor dad” being his biological father, while the “rich dad” is the

father of his best friend–the man who taught him the fundamentals of making money

work for you instead of the other way around. The two fathers’ mentality and advice they

offer to their sons immensely differ, showcasing their gap of financial literacy. While one

father urges on getting a good education in order to earn a stable job that pays well, the

other encourages to build assets that generate income even while you sleep.

Unsurprisingly, one remains poor throughout his life, while the other achieves enormous

success by not falling for the common trap.

Kiyosaki creates easy to understand diagrams to financially literate complex topics to

newbies. The above diagram does an amazing job to showcase why the rich get

richer. The simple answer is that they invest in assets (real property, stocks, cash and

bank accounts, etc...) that generate a positive cash flow. By solely relying on a salary

where you are relentlessly working for an employer, you are dedicating your entire life

into a never-ending loop of financial struggle. By the time you earn your salary, you will

have so many liabilities and expenses to cover that true wealth becomes out of reach.

So I urge all of you reading this blog to take one lesson away: achieve

FIRE–Financial Independence, Retire Early–by becoming financially literate

to make smart and bold decisions.

During our school years, we often prioritize and stress about tests in history or our

grades on English essays, while neglecting to educate ourselves financially. As a result,

as we get older, we end up in the RAT RACE!

The Rat Race is a continuous cycle of living in dissatisfaction. You work to earn money

to pay off bills and debt, leaving you with little to no savings and no choice but to keep

working. In this cycle, true wealth–your ability to sustain yourself without working–is

never accumulated. The middle class stay “poor” because they live from paycheck to

paycheck, undermining the value of being BOLD and taking smart RISKS. Being

financially literate helps you escape this traditional and unhealthy pathway of living, and

allows you to lift yourself to greater heights and a brighter future.

Written by Khushi Shah, VP of Hospitality