Rich Dad, Poor Dad is a book written by Robert Kiyosaki that has sold over 32 million copies worldwide. The book is based on Kiyosaki’s experiences with his two fathers, one rich and one poor. The book teaches readers about the importance of financial education and how to build wealth.
Here are 10 lessons from Rich Dad, Poor Dad:
1. Manage your money. Many people are able to make money, but not everyone learns how to manage it properly. Financial intelligence starts with learning the difference between assets and liabilities. Assets are things that put money in your pocket, while liabilities are things that take money out of your pocket. Ensure that you have more money coming in than going out, which is what will make you richer.
2. Pay yourself first. Most people earn and spend their salary paying bills. A rich person always pays himself. This means investing in yourself, whether it’s through education, experiences, or other means. When you pay yourself first, you are putting your financial future first.
3. Saving and investing are different. Saving is considered a must and a good habit. However, you need to invest your money instead where it grows at a higher rate than inflation. Saving weaken the purchasing power while investment will increase the value of your money.
4. Learn taxes. If you are rich and lack financial literacy, you will end up paying a lot of taxes. The rich have their investments often in learning, so they have to pay fewer taxes. You need to have financial IQ in different areas like accounting, investing, market forces, and the law.
5. Do not rely on a single source of income. Most people rely on a single source of income. You can never become rich and financially secure if you are one of those. You should have 2 to 3 streams from where you earn money. You will be in better position even if you face some financial crisis if you multiple income streams.
6. You become smarter by taking risk. Unless you take a risk, you cannot grow, grow as in grow really big. You should take risk because some opportunities in life have the potential to change the course of your life.
7. Everyone needs to be a financially literate. Intelligence solves problems and produces money. Money without financial intelligence is money soon gone. The sad part about the education system around the world is that it teaches to work for money. The system never teaches how to make, manage, and keep the money. You should learn how to create wealth and make a plan to achieve financial freedom.
8. Mindset is everything. Poor dad always used to say” we can’t afford this “whereas rich dad teaches him to replace it with “how you can afford it?”. In This way, replace your negative attitude into positive and you will definitely find ways to do achieve that target. Your attitude and mindset matters the most. The first and foremost thing to do anything is that you must believe in yourself.
9. Surround yourself with people smarter than you. There is a very popular saying ‘If you are the smartest person in the room, then you are in the wrong room.’ If you want to be smart, surround yourself with people smarter than you.
10. Control emotions. The situation only gets worse for you when you are not able to control your emotions. The statement holds good for both personal and professional life situations. You should learn to control your emotional balance and be focused on accomplishing your financial goals.
