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Location: Reno, Nevada, United States

I've been involved in different businesses for 20 years. If I knew then (as they say) I'd have retired by the time I was 20. Now my mission is to allow other people to learn from my mistakes.

Wednesday, June 30, 2004

Security vs. Freedom

Security vs. Freedom

I ran across this article and realized it fit so well into my current mindset. I've been thinking about how little security we have since something happened recently. Actually I've known this for a long time but what happened reinforced it.
A close friend of mine had worked hard for her company for about 7-8 years and made 1 mistake and was fired. You would think it must have been huge to override 7 years of loyalty and hard work, but in my opinion it wasn't. I won't go into detail but many people have done much worse and were only written up.
After reflecting on this incident, I realized that no job is safe. You can believe your skills are so great that you can't be fired or else the problems it will create will be too much to let you go. But that's wrong. Some times they will fire you and force everyone else to suffer.

The thing we all need to know is that depending on a job is far riskier than owning your own business. If you depend on someone else for your paycheck, they can take it away at any moment. Loyalty and hard work will not save us.


Security vs. Freedom… It’s Your Choice
By Robert Kiyosaki

Most of us would like to believe we can have both security and freedom. But in Rich Dad® terms, these are two opposing values. My rich dad said, "Freedom and security are not the same ideals. In fact, in many ways, freedom and security are exact opposites. The people who have the most security are people in prison. Prisoners have the least freedom and the highest security. People in prison do not need to provide housing, food, recreation, health care, or education for themselves. They have a lot of security but at the price of their freedom."

One advantage of living in a free society is the freedom to make choices. There are two big choices according to my rich dad: the choice of freedom and the choice of security. Both choices have appeal, both have strengths and weaknesses, and both come with a price. If you choose freedom, the price is paid up front, at the beginning of your life. If you choose security, you pay a huge price in the form of excessive taxes and interest payments. Often the price is paid later in your life.

Look at the bankruptcy debacle of Enron, one of the world's largest corporations. The price the loyal, hard-working, security-seeking employees paid is very high: they lost their jobs and their retirement plans. Unfortunately, many are paying this price at the end of their working years, just when their options diminish because of age or health.

Security vs. Freedom: It's Your Choice
Today, many employees are learning their jobs are not secure and neither are their retirement plans. In the coming years, 75 million baby-boomers may discover that their stocks and mutual funds were not as secure as they thought, forcing them to retire to a lower standard of living that their parents enjoyed. With the prospects of downsizing looming over their heads, some have taken the initiative to start their own businesses. Should you be one of them?

My rich dad said, "Somewhere along the way, people become more desirous of security and have paid the price by selling their freedom. You may have noticed that schools today focus primarily on job security rather than financial freedom. The problem is most people do not know that the cost of that security is their freedom." He continued to say, "If you choose security, someone is always telling you what hours to work, how much you make, and even when you can eat your lunch. That is the price of security."

Freedom means having more choices, not security. You have a choice to be poor, middle class, or rich. If you choose to be rich, then you need to learn a whole new game. But it requires a different mindset and financial intelligence. You will be free to work or not to work. Your knowledge will bring you freedom from work because you will learn how to make your money work for you. The choice is yours.



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