Now is the time to learn from the expert and be financially strong
“Rich Dad Poor Dad” by Robert Kiyosaki is, in one word, a masterpiece.
If you want to know financial planning in depth, then this book is just for you.
Robert Kiyosaki is an American investor, author, businessman, motivational speaker, and financial advisor.
He gained a huge amount of reputation over the past few years and it is estimated that his net worth is around $80 million.
“Rich Dad, Poor Dad” is a book based on his life. He took the lessons from his growing years and jotted them down in pages.
And if you are someone who is stepping into the big world, then I have got something for you.
After reading this non-fiction, I have gained so much knowledge about execution, so I thought of sharing it with you.
Here are the lessons from the Rich Dad Poor Dad Book that will help you become financially free.
Let me give you a quick summary of the book…!
Rich Dad, Poor Dad Summary
The story had two dads in it, one with a Ph.D. degree and another who only finished eighth grade.
These two men equally influenced Robert’s mind in every way.
Kiyosaki’s biological dad was a very bright and quite well-named guy. Poor Dad felt that hard work and excellent grades would lead to a well-paying career.
Nonetheless, given these apparently favorable characteristics, Poor Dad did not perform well economically.
Kiyosaki’s closest friend’s father was Rich Dad. He possessed a professional attitude comparable to Kiyosaki’s real father, but with a variation.
Rich Dad trusted in financial literacy, knowing how finance works and making money work for you.
He, despite being the 8th dropout, finally became a billionaire by putting the power of resources to complete for him. Robert Kiyosaki Books are must read books for gaining financial freedom.
Now that you have a brief idea of what I am talking about, let’s see the lessons that we can learn from this art.
Below I have written 10 best “Rich Dad, Poor Dad” lessons for your financial growth.
1. Rich People Buy Assets, Poor People Buy Liabilities That They Think As Assets
If you want to be rich, this one thing should be etched in your mind.
We hardly know what an asset is. And which things should be considered an asset.
An asset is something that puts money in your pocket. A liability is something that takes money out of your pocket.
Rich people generally get money and invest them in stocks or properties.
Middle-class people get money and spend it on everyday things like TV, mobiles, or cars.
In the long run, they won’t give you back the money.
2. Change Your Financial Thoughts
This has to be one of the most important “Rich Dad Poor Dad” lessons.
If you can’t buy something, instead of being negative about it, scavenge the ways of buying the thing.
Change all your negative financial thoughts into positive ones.
Instead of thinking “I can’t do”, start saying “I can do.”
Robert Kiyosaki took the courage to deviate from the daily race and make his own identity by learning from the experts.
3. Start Taking Financial Risks In Life
Not taking risks is what is stopping us from achieving great things.
We often contemplate failure rather than success and take a step back immediately.
Rich people have the guts to take risks in life. They see the opportunity in everything and plan their future accordingly.
Take risks but before that make plans. Don’t just jump into it. Make calculations beforehand. Ask yourself whether you are going to profit from your investment.
4. It Is Important To Be Financially Educated
I cannot emphasize this line enough. The author mentioned this one thing every now and then.
Whatever your educational degree is, if you have brains and the desire to earn money, then you need to be financially educated.
One remains middle-class or poor just because they don’t know how money works.
Know the strength of money. Learn how to invest your precious money.
Love of money is not the root of all evil. Lack of money is the root of all evil.
5. Focus On Assets Rather Than Income
As said above, assets are important when it comes to financing.
Middle-class or poor people generally focus on good grades and good jobs with good salary packages.
Rich people focus on good education so that they know how to buy assets.
Kiyosaki’s dad had a Ph.D. yet he didn’t earn enough. But his best friend’s dad, despite being poorly educated, earned millions.
We should start taking responsibility for our investments rather than blaming others. Take things in your hands rather than depending on somebody else.
6. Don’t Diversify With Too Little Money
See, I understand no one has had money since the beginning. Everybody starts from scratch.
But the important thing is to stay focused on your goals. Don’t start to divert with just a few dollars.
Don’t do what the poor and middle class do, which is to put their eggs in many baskets.
Instead, focus, and put them into a few ones.
Aim to get a yield that will have a positive impact on your life. Go for diversification as soon as you acquire wealth that will be tough to earn back through your daily job.
7. Focus On Your Savings More For The Sake Of Future
If you can’t have proper savings despite earning a handsome amount of money, then what’s the use of earning?
Rather than focusing on how much you earn, focus on how much you save.
These savings will help you acquire your future wealth.
One can earn less money and yet save so much.
Invest in things that will bring back your money.
8. One Cannot Work For Others & Create Wealth For Themselves
“Rich Dad Poor Dad” tells us how one earns less than their potential in their job.
So when you do a business and work for yourself, there is no ceiling on your income.
The more you earn, the more you save, and the more you invest.
9. Know The Way of Taxation From Corporations
Robert Kiyosaki describes how companies pay taxes. They produce, invest, and then pay taxes on the remainder.
Individuals, on the other hand, are taxed on their wages first and then permitted to spend.
The system is exploitative, but it can be stopped–by learning four major areas of knowledge—accounting, investment, market awareness, and legislation.
This will assist you in engaging in significant tax planning, as well as savings on outgoing taxes.
10. Learn Before You Earn
We often say to focus on learning rather than on earning.
Well, Robert Kiyosaki has the same opinion.
Before we focus on earning money, we also need to learn the skills.
Think of these skills as an asset since these same things will help you bring money in the future.
Good communication and personnel management abilities make it simple to obtain relevant information from your financial adviser.
So, did you learn your lessons? Weren’t they great?
“Rich Dad Poor Dad” lessons never fail to amaze us. You see finance in a very different way.
All these perspectives are what make us unique from others.
Buy and read the book as soon as possible. And have an enriching session. But before that, remember to be financially educated.