Best 17 Lessons From Rich Dad Poor Dad.
Rich Dad Poor Dad is the book that tells the story of Robert Kiyosaki, who had two fathers, a rich and a poor one.
His real Dad was Highly educated and intelligent. He had a Ph.D And earned substantial amount of money yet always struggled financially, that is why in this book he is referred to as a Poor Dad.
The other was a father of his best friend,he was the Eight grade drop out but become one of the richest men in Hawaii.
Both Dad provide Robert with advice but they did not advice the same things,which got him to choose which Dad to listen to.
In this article I’ll be highlighting the best lessons that the author share with us when he choose to listen to his rich Dad advice.
Lesson#1: The Rich Don’t Work For Money
The process of being an entrepreneur is different compare with an Employee.
Starting a business or an investment may take time till you can see the result. So an entrepreneur my work for free at some point until the time to harvest, but an employee may start working and earn money the same month.
The difference is that an employee may woke up one day full of dept due to emotion of fear and greed while an entrepreneur may find financial freedom.
Lesson#2: Financial Literacy
You've got to have financial education, ignorance is what kept majority of people poor for a person may be highly educated, Professionally successful and financially illiterate.
Rich people acquire assets.The poor and middle class acquire liabilities that they think are assets.
An asset puts money in your pocket. A liability takes Money out of your pocket
Lesson#3: Mind Your Own Business.
Rich Dad advice the author to focus on starting a business not on working for someone else.
Working for someone else may be the biggest result of people struggling financial.
You may keep your daytime job but start buying real assets and not liabilities.
Lesson#4: The History of Taxes And The power of Corporations.
The history of tax was covered, The story of robin hood as he was stealing from rich people and gave to the poor.
Poor People thought it was a good idea for the rich to pay more in taxes so they vote for the law which end up punishing them.
An employee get taxed before even receiving the paycheck but Entrepreneurs pay themselves first by hiding business in corporations.
Lesson#5: The Rich Invent Money
You need to see an opportunity with your mind and not with you physical eyes.
In real world the smart are not the ones who get ahead but the bold.
Our mind if trained well it can create enormous wealth.
Lesson#6: Work to Learn Not to Earn
Rich people value learning, Most successful people are readers but poor people tend to value Job security.
Job is an acronym for “Just over broke”
Lesson#7: Overcoming obstacles
These obstacles according to the author are i) Fear ii) Cynicism iii) Laziness iv) Bad habits 5.Arrogance.
For one to be successful financially must consider getting rid of these obstacles.
Lesson#8: Find a reason greater than reality.
The reason to do something must be spiritual so when you bump into a mountain along the way you may be able to endure.
Lesson#9: Make daily choices.
with every Dollar we get in our hands everyday we have the power to choose our future: to be rich,poor or middle class.
Lesson#10: The power of association.
The people we hang around with most of the time have great impact on our financial status.
Lesson#11: The power Learning quickly.
You must learn to master a formula quickly and then learn a new one.
Lesson#12: Pay Yourself First.
This will help to stimulate your discipline, Control of yourself is needed for to get rich.Keep your expenses low, let the pressure build you when come up short don't dip into your savings or investments.
Lesson#13: Pay your brokers well.
Pay professionals lead to a good advice that may save you time and money.
Lesson#14: Return on Investment (ROI).
For every investment the question to ask yourself is how fast do I get may Money back?
Lesson#15:Use Assets to buy luxuries.
An Employee may take a loan to buy a car or a boat things which depreciate in value.
What is recommended is to create a business or investment that will finance the luxuries you want.
Lesson#16:Choose heroes.
Copying or emulating heroes can help you to learn and grow faster. find heroes who already have success on your field and learn fro their success and failures.
Lesson#17:The power of Giving.
“whenever you feel short or in need of something, give what you want first and it will comeback in buckets ”.