Learn Eight Money-cum-Life Lessons from the Book "Rich Dad Poor Dad."
I have always wanted to read this book, and there are two reasons for the same. First, it is the most recommended book. And second, to understand what justifies the first reason.
There are eight money cum life lessons that Robert Kiyosaki wants all of us to learn from his book “Rich Dad Poor Dad.”
1. Rich Make Money Work for Them
If you want to be rich, find an idea, take it as an opportunity, and make money even when you aren’t around it. And what makes you poor is when you constantly work hard only to make money.
We don’t understand that it is the fear that makes us work hard for money, and it is the greed to buy stuff that makes us poor by using all that money well. And hence, it pushes us to work more to earn well.
So, the mantra to be rich here is to make money work for you and not vice-versa.
"
Life pushes all of us around. Some people give up, and others fight. A few learn the lesson and move on. They welcome life pushing them around. “
Robert Kiyosaki, Author, Rich Dad Poor Dad
2. Rich are Financially more Literate
If you want to be rich, make enough assets to generate enough money to cover most of your expenses and create more income opportunities. And by using this income, again invest and make more money for yourself. What makes you poor is investing in things “people think are an asset” instead of liability because they have a widespread perception. Like there is a widespread perception that buying a house is an asset. But we don’t know that once you invest money in a home, you stay so invested in them that you lose many investment opportunities on your way.
Even paying your manager for investing in a mutual fund are liabilities that people fail to understand. We have to realize that when there is a rise in income, there is also a rise in taxes. So, the mantra to be rich is to be a financially literate person. Dad
"
Money without financial intelligence is money too soon gone.”
Robert Kiyosaki, Author, Rich Dad Poor
3. Rich Mind Their Own Business
If you mind your own business creating Assets that “you love and can take care of your own,” you can be rich. And, once your cash flow increases, you can even buy luxuries out of that.
So mind your own business.
"
An important distinction is that rich people buy luxuries last, while the poor and middle class tend to buy luxuries first.”
Robert Kiyosaki, Author, Rich Dad Poor
4. Rich never Underestimate the Power of Corporation
If you want to build an empire, have a financial IQ, learn the science behind the investment, and understand the market and law. These things help create corporations. A corporation earns, pays expenses, and then pays taxes later. Their expanses include buying a car to board meeting in Goa to insurance, health club membership, etc. And people who work for corporations earn, pay taxes, and spend money later. Here, the author wants to say that while the rich earn, spend, and pay taxes later, the poor earn, pay taxes, and spend money later. Know the difference!
"
Every time people try to punish the rich, the rich don’t simply comply. They react. They have the money, power, and intent to change things. They don’t just sit there and voluntarily pay more taxes.”
Robert Kiyosaki, Author, Rich Dad Poor Dad
5. Rich Invent Money Other Don't
A Rich knows how to invest well. Rich don’t put all their eggs in one basket. They know not all their investment will work, but some of them will indeed create massive cashflows.
Rich usually generate massive cash flows primarily because they never doubt themselves and possess good financial intelligence. So they usually find many business ideas or look for opportunities, make many investments, and generate massive returns for themselves.
"
The single most powerful asset is our mind. If it is trained well, it can create enormous wealth seemingly instantaneously. An untrained mind can also create extreme poverty that can crush family for generations.”
Robert Kiyosaki, Author, Rich Dad Poor
6. Rich Learn More to Earn More
Rich tries to learn everything and learn about many different business areas. It may be little of everything, but he tries to understand and know everything.
So, the rich learn more, understand well, and earn even more. Hence, that’s what increases their cash flow.
"
Life is much like going to the gym. The most painful part is deciding to go. Once you get past that, it is easy. “
Robert Kiyosaki, Author, Rich Dad Poor Dad
7. Rich Know How to Overcome Obstacles
Rich tries to overcome fear, cynicism, laziness, bad habits, and arrogance. Rich win big, lose big. They analyze every situation very well. Rich finds ways to afford things, pay them first, and pay their employees later. They know ignorance is bliss, so they constantly educate themselves.
Thus, they easily overcome obstacles and make their way. Dad
"
I have never met a golfer who has never lost a golf ball. I have never met people who have fallen in love who never had their heartbroken. And I have never met someone rich who has never lost money. “
Robert Kiyosaki, Author, Rich Dad Poor
8. Rich Go Through Lot of Thought Process
Determination is key here. Rich always tries to figure out strong reasons why they want to be rich?
And when they find those strong reasons, it makes them stronger and creates wealth only because of their self-discipline to pay them first and keep their open mind to new ideas.
"
Without a strong reason or purpose, anything in life is hard.”
Robert Kiyosaki, Author, Rich Dad Poor Dad
Final Thoughts
The above listed are a few mantras that can change your life and make you rich. You will realize how much these things make sense when you start relating them to the psychology of every rich person you know.
Robert Kiyosaki has listed all those reasons well that made him rich, and now I understand why it is the most recommended book ever.
