“Rich dad, poor dad” is a best-selling book that is an account of Robert Kiyosaki’s two dads. Through his rich dad’s financial advice, he discovered how to let money work for him and became a successful business owner.
Rich dad says: “If you stop working today, an asset puts money in your pocket and a liability takes money from your pocket. Too often people call liabilities assets. It’s important to know the difference between the two.”
After reading such a book there are a number of lessons you could learn, which you could apply to your own personal and working life.
One of the most important lessons from “Rich dad, poor dad” is that the book explains how to escape the “rat race” and to achieve financial independence.
One of the teachings from the rich dad in the book is to believe in financial self-reliance and financial responsibility.
“Pay myself first”
Kiyosaki writes that rich dad always took a percentage off the top of any income he earned. He put this money into an investment account that went toward purchasing his assets.
The author also compares the different trains of thought form the two dads.
Where the rich dad says: “Money is power,” the poor dad says “I’m not interested in money.”
Lessons that can be learned from “Rich dad, poor dad”:
- If you don’t know how money works, you can never have enough.
- People are not properly taught how to spend their money.
- The only way to become financially independent is to accumulate income generating assets which can pay for your expenses.
- Opportunity costs are tremendous (when investing in property) because when all your money is tied up in your house, there will be no money left to invest in income-generating assets.
- For most people, their profession is their income. For rich people, their assets are their income.
- Don’t simply aim for more income, aim for more assets.
- In your business, surround yourself with people who are smarter than you, and pay them well.
- Have a clear purpose in mind. Write yours down, because it will keep you motivated.