If you have ever searched for the best personal finance book to read on Google then you’ve mostly seen the title “The Rich Dad and Poor Dad” which is written by Robert T. Kiyosaki
The “Rich Dad Poor Dad”
is the story of Robert .T. Kiyosaki who had two dads the “Poor Dad” was a
highly educated teacher and the “Rich Dad” was a wealthy entrepreneur.
Although both had a significant amount of money “Poor Dad”
always struggled while “Rich Dad” was on the path of becoming Richest Man in
Hawaii
So if you weren’t born with rich parents then you must
learn from Robert.T. Kiyosaki. This article explains 5 Important Lessons from “The Rich Dad Poor Dad” that you must
definitely learn from this book
1. The
Rich Don’t Work For Money
Robert .T. Kiyosaki starts his book by describing the main
difference between the rich and poor. The rich dad says “money works for me”.
He want you to work to let you learn how money works and how to have it work
for you. But if you want to master how, first you have to alleviate your fear
According to the rich dad “fear is the primary emotion” It
keeps most people to stay in their job because they fear of not being able to
pay the bills or not having enough money.
Greed is the second; if you offer more money, they also
increase spending. If you don’t want to become slave to your money, you have to
think about it logically, not through emotions.
2.
Stay Focused (Mind your Own Business)
Robert .T. Kiyosaki describes
that an individual should remain focused on the end goal (which can lead to
financial freedom) and work for it (mind your own business)
Therefore, you must try out
different possible ways to build wealth, look for opportunities, Invest in
businesses to build more assets and generate a strong flow of income
Use the income earned to
generate more returns or wealth so that it leads you to financial freedom.
Effectively you should be making money for you to be financially free and earn
huge amount of wealth
3. The Rich Invent Money
The one thing that holds all
of us back is self-doubt. While most people wait around for luck and
opportunity, the rich ones are creating opportunities out of obstacles.
In the real world, it’s not
the smart that gets ahead but the bold. If you don’t think big and take risks,
you will spend your entire life waiting for something that is not bound to
happen.
Robert .T. Kiyosaki reiterated
here the importance of financial education. The rich doesn’t think that he can
make more money just by working harder; he also strives to become financially
literate to explore more options and have more power.
4.
Take Risk and Become Smart with Experience
As per the book, rich people
take risks because they find opportunities in life that come and go, that can
potentially turn them into billionaires.
The author took a risk with
his first investment, it was a small 18,000 dollars condominium in Hawaii that
fetched him 25 dollars a month. Although he did not earn a lot from it, he
became smart and subsequently, with every deal, he got smarter.
So, stop seeking mediocrity,
take a calculated risk that can aid you to build wealth and become smart with
each experience. Try to strategize your investments, set forth for your journey
of wealth creation and accomplishing financial goals right.
5.
Work to Learn Don’t Work for Money
Robert .T. Kiyosaki thinks
that there are people who are only “one skill away from great wealth.” Aside
from the things we learn in school, we also need to learn the skills needed to achieve
financial success. The rich people seek work for what they will learn, more
than what they will earn.
Some of the significant areas
to focus on are management and communication. Robert .T. Kiyosaki also stressed
the importance of sales and marketing skills. These are specific knowledge that
people should acquire to help them reach the road towards financial freedom.
Rich people perceive money
differently. They know that it is not enough to make money – you also have to
grow it and learn how to manage it. It’s one thing to become financially
independent, and another to become financially literate.
Having knowledge when it comes
to money matters is essential not just for investors, but for everyone. The
financial decisions you face on a daily basis will have a major impact in your
future so you should know how to be responsible for these.
The lessons in this book are
timeless. So learn these 5 lessons on “The
Rich Dad Poor Dad “from this summary
article and start acquiring
knowledge about finance, markets, tax rules and regulations, and life skills to
build wealth.
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