Thursday, December 10, 2020

5 lessons from Rich Dad Poor Dad by Robert T. Kiyosaki

 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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