The Top 5 Rich Dad Poor Dad Lessons Learned
Updated: Oct 25, 2022
Robert Kiyosaki’s Rich Dad Poor Dad has opened many people's eyes to the world of wealth. Kiyosaki explains how the difference between a poor person and a rich person is primarily a mindset difference.
According to Kiyosaki, you can become rich in your mind before you become rich in your wallet. These best Rich Dad Poor Dad lessons have changed how I think about business and personal finance.
Rich Dad Poor Dad Lessons Learned
1- Focus on Financial Education
According to Kiyosaki, there is no better investment than in yourself. The best way to increase your income is to learn valuable skills like investing and writing.
2- Know the Difference Between Assets and Liabilities
Anything that puts money in your pocket is considered an asset. On the other hand, liabilities take money out of your pocket.
It is a simple concept, but Kiyosaki ensures you clearly understand the difference between an asset and a liability.
3- The Rich Make Their Money Work for Them
The working class works a 9-5 job and receives a paycheck; Rich people create businesses that pay others to make them more money.
In other words, rich people invest in assets that provide cash flow, like dividend stocks, real estate, and businesses, so they don't have to work a job for money.
4- Reduce Liabilities
Since we all have bills to pay, making sure your assets cover your liabilities is essential. Until this happens, you will not be financially free.
Kiyosaki recommends that you avoid living a luxurious lifestyle until your asset column is large enough to cover your expenses.
5- Work to Learn
Instead of working to make money, if you work to learn valuable skills, you will continuously be able to increase your income.
If you are not developing your skill set when you work, it will be hard to increase your income over time. The more you practice skills like writing, the better and more expensive you will become.
Rich Dad Poor Dad Summary
The book starts from the point of view of a young Kiyosaki. He and his friend were tired of being the poor kids at school and decided to ask their parents how they could make money.
Kiyosaki’s friend’s dad would become known as rich dad, and Kiyosaki’s dad would be known as poor dad. Poor dad was a teacher with a degree and a solid job but always struggled with money. Rich dad was a businessman who did not have much money but knew a lot about running a business.
What Poor Dad Recommended to Make Money
When Kiyosaki and his friend asked poor dad how they could make money, he recommended that they stay in school to get a degree to score a good job.
The only problem was that he did the same thing yet still struggled with money. When the kids asked about business ideas, poor dad recommended they talk to rich dad because he knew a lot more about business.
What Rich Dad Recommended to Make Money
Rich dad told the kids that they needed to figure out a way to create money. Working at a job is what most people do, but creating a business and value is the best way to become rich.
Taking his advice, the kids decided to create their own money. When I say create, the kids had set up a garage factory where they were manufacturing fake coins. When poor dad saw what they were doing, he told them it was illegal, and they needed to find a new idea. They were on the right track but not quite there.
Rich Dad’s Lesson
After the kids failed their business plan, rich dad decided to offer them a job. The kids got excited and immediately accepted it. Little did they know rich dad preferred to teach through actual experiences.
After slaving away for rich dad, the kids got fed up with the low pay and got frustrated. Kiyosaki demanded higher pay and claimed rich dad was using him as cheap child labor.
Ultimately, this is the reaction rich dad wanted. He taught Kiyosaki what it is like to be stuck working a 9–5 job with real-life experience.
He explained that if the kids never figured out how to create their own money, they would constantly rely on an employer and always be looking for a new job with higher pay.
I do not want to spoil the book for you, but I hope this quick story helps convince you to read the whole book. The way Kiyosaki describes his experiences with his rich dad and poor dad will open your eyes to many new ideas. The book is available on Amazon right now for less than $10, and I promise it is worth every penny.
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