Rich Dad Poor Dad is No. 1 Personal Finance book of all time!
The author Robert T. Kiyosaki has challenged and changed the way tens of millions of people around the world think about money. He as an entrepreneur believes that in order to be successful financially, you need Financial Education not college education. His point of view is that “old” advice- go to college, get good grades, get a job and save money- has become absolute advice in today’s fast-paced Information Age.
This book explodes the myth that you need to earn a high income to become rich. “Rich Dad Poor Dad” mirrors the main reason people struggle financially is because they have spent years in school but learned nothing about money. The result is that people learn to work for money but never learn to have money work for them.
If you want to get rich, you need to invest your time to educate yourself financially. This book will make you financially literate. Financial Education is the only way to your Financial Freedom.
#10 Useful lessons from Rich Dad Poor Dad:
#1. The Lack Of Money Is The Root Of All Evil.
People who are done with every way to earn money and be rich, often gets fed up and says, “The love for money is the root of all evil”. They become satisfied with what they have and never desires to grow and improve. They fail several times but never tries to heed the lessons they learn.
But in reality the root of all evil is the lack of money. People try to earn more, get a high paying job, request for a raise but after many trial and errors they QUIT. Thus, they fail to earn and leave the hope of being rich.
#2. Focus On Financial Education.
How strange it is that we want good grades, go to good colleges, get high paying jobs to earn money, but we learn nothing about money. School never teach us to earn money.The truth is- one cannot get rich by formal college education.
Therefore, most of the millionaires and billionaires are college dropout. That does not mean you have to drop out to get rich.You just need to invest your time in Financial Education. You need to learn about money, how it works, how to manage it and how to multiply. This is what Rich Dad Poor Dad will teach.
#3. The Rich Don’t Work For Money.
The poor and middle class work for money. The rich have money work for them. Employees and professionals like CA, Doctors and Lawyers stops earning when they stop working. They cannot afford to take a long break because if they do so, they stop earning. They work for money and their income comes down when their working hours comes down.
But the rich knows how to have money work for them. They earn more and more even if they don’t work. That’s the secret you have to learn in order to be rich.
#4. The Rich People Acquire Assets (Real Assets).
When you need a loan, the bank won’t ask you your report card but your financial statement. What poor and middle class thinks that their house and cars are their assets. But the fact is, they are liabilities because they cost money.
Assets are simply things that puts money in your pocket. Your house and cars takes away money from your pocket.Poor and middle class invest money in liabilities that they think are assets. But the rich invests in real assets. Assets that bring them more money.
Rich Dad Poor Dad will teaches about those real assets.
#5. The Concept Of Cash Flow.
A lot of people earn lot of money but they fail to keep their money and is bound to go to work to earn more money. Most of the people gets trap in this race and cannot afford to quit their job. This happens because the money they earn, flows through their liabilities as expenses and investment in asset column is nil.
The rich earns more and more because their income flows to their asset column which generates more income. This is how the rich have their money work for them. You need to focus on your CASHFLOW in order to be rich and wealthy.
#6. Divert Your Focus From Your Income Statement To Asset Column.
People think that more income will solve their financial problem and so they focus on their Income Statement. They want to earn more and save the extra money. But gradually the ‘extra’ money no longer remains as extra. They want a pay raise again and the only thing to earn more is their job.
Rich Dad Poor Dad teaches you to focus on your Asset Column to acquire assets that brings you more and more money with putting very less or no effort.
#7. The Single Most Powerful Asset We All Have Is Our Mind.
“The single most powerful asset we all have is our mind. If it is trained well, it can create enormous wealth”- Robert Kiyosaki.
Wrestlers don’t go for a fight before training themselves. Players don’t come to the field without proper practice. The same thing applies when you want to get rich and own enormous wealth. You need to train your mind. You need to gain lots of knowledge and experience in order to be rich.
You must not only feed your mind but FORM your mind to face and overcome obstacles. You need to develop financial IQ because you have to participate in the fastest and the biggest game in the world.
#8. Four Skills That Financial Intelligence Demands.
- Accounting: Accounting is financial literacy, the ability to read numbers. This is vital skills if you want to build business or investments.
- Investing: Investing is the science of money making money.
- Understanding Markets: Understanding markets is the science of supply and demand. Opportunities in the market are not seen with your eyes. They are seen with your mind.
- The Law: The law is the awareness of accounting, corporate, state and federal regulations. The author recommends playing by the rules.
You have to be the master of all the four to start your journey towards your financial freedom.
#9. Learn To Overcome Obstacles.
“The primary difference between a rich person and a poor person is how they manage fear”
Rich Dad Poor Dad teaches you to face and overcome obstacles. For most people, the reason they don’t win financially is because the fear of losing money is far greater that the joy of being rich. They fail to overcome that fear and stick to their nine to five job because that gives them financial security. The rich knows to use their fear as a motivation and do something extraordinary.
#10. Poor And Middle Class Seek Financial Security, Rich Seek Financial Freedom.
The primary reason why people stick to their job is because they want security. They don’t want to take risk and prefer to be secured rather than being FREE. The fact is, not taking a risk is the biggest risk that poor and middle class take. Rich people seek freedom, Financial Freedom that makes them more rich and wealthy.
No one can change you until you yourself decide to change. If you want to be rich, honestly, you have to invest your time in Financial Education, apart from your college education.
Rich Dad Poor Dad is the starting point for anyone who wants to seek Freedom. If you want to be financially free, you must get this book for yourself and take a step towards your financial success.
You would also like: Top 3 Books One Must Read Before Graduating From College.