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Chapter 5: Specialized Knowledge

Think and Grow Rich Chapter 5 is about the different kinds of knowledge, and in particular about the concept of specialized knowledge. You will learn the importance of developing an expertise in a particular field.

Summary: Specialized knowledge

Nature of knowledge

There are two kinds of knowledge: general knowledge and specialized knowledge. General knowledge is of but little use in the accumulation of money.

Specialized knowledge will not attract money unless it is intelligently organized with imagination and directed through practical plans of action into the definite end of accumulation of money. Knowledge is only potential power.

Specialized Knowledge and creativity
The importance of organized knowledge and creativity to produce original ideas.

Also, when you need more knowledge than you can acquire, you may bridge this weakness through the Master Mind principle.

Knowledge doesn’t have to be in possession of the person who accumulates the fortune. But the person who stops studying is doomed to mediocrity, as success implies continuous pursuit of knowledge.

Education

A person is said educated when he/she knows where to get knowledge when needed, and how to use imagination for the organization of such knowledge into definite plans of action.

Such person should also be able to organize and direct the master mind who possess the knowledge useful in the accumulation of money.

The importance of imagination and of educated men is due to the fact specialized knowledge is much more abundant and more easily acquired than original ideas. Specialized knowledge may be found just around the corner.

Low beginnings

Getting into a rut is when we accept a fate because of the habit of the daily routine. The habit becomes stronger and stronger until we cease to try to throw it off.

Bottoms are always monotonous, unprofitable places. That’s why we have to avoid low beginnings.

However, when starting from the bottom, it is worth keeping in mind that more money changes hands in return for services than for any other purpose.

Specialized knowledge explained

General knowledge is not useful for the accumulation of money because it lacks expertise. In fact, in a competitive society like ours, every product and service is supposed to find its place within the market.

All the products we see are the products which have survived. Many other have died and just disappeared from Earth. Today, if the product we deliver falls short with respect to the requirements of our customers, they will not buy our products. That is why experience is so important, and technical and expert advise is so needed.

Today it is not useful to seek advise from people with general knowledge. Instead, you must seek advise from a professional lawyer, a professional accountant, a professional doctor, etc. Specialized knowledge has the power to generate income. General knowledge does not.

Chapter 5 and the Master Mind

Think and Grow Rich Chapter 5 Specialized Knowledge introduces the concept of the Master Mind, although chapter 10 is fully dedicated to it.

A Master Mind is a group of people owning all the knowledge needed to achieve a particular goal. The Master Mind is managed by a manager who should conduct the thinking of the group with intelligence, imagination and creativity to create original ideas.

Nowadays any successful company contains, somehow, a mastermind. Such company will have a legal expert, a financial expert, a technical expert, a HR expert, etc. who will help the CEO (manager) step in the right direction.

Go to Chapter 6 or read our 5-minute summary of the book.

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