Rich Dad Poor Dad Lessons
We will discuss Rich Dad Poor Dad lessons in this Post. Rich Dad Poor Dad is a great book by Robert T. Kiyosaki about financial intelligence and financial freedom. This is the first book i have read on financial freedom, and it is one of my personal favorites. if you want to read more about financial freedom, please check out my other posts in the Financial Freedom Section.
Where to buy Rich Dad Poor Dad
You can buy this book on Amazon. below are the links for purchase.
Listen to rich dad poor dad
what is rich dad poor dad book about?
This book is about financial IQ and financial freedom. it tells the story of a boy with two fathers, one rich, one poor, to help you develop the mindset and financial knowledge you need to build a life of wealth and freedom. This book describes the mindset of the rich and poor and how they make decisions for money.
What does rich dad poor dad teach you – Rich Dad Poor Dad Lessons
- Be Brave – Take risk – be open for opportunities
- Rich people make money work for them – by wisely investing
- Education on personal Finance is your greatest Asset – Learn Financial Literacy
- Learn about Asset and Liabilities –
- Don’t Make emotions your master – Control Them
- Work for the Purpose of Learning Life Skills, Not for Money
- Winner inspires from failure – Don’t ever lose hope – be consistant
- Pay yourself first – Always Save & Invest first and expend the balance
Ideas From Rich Dad Poor Dad
- The poor and the middle-class work for money. The rich have money work for them.
- It’s not how much money you make that matters. It’s how much money you keep.
- Rich people acquire assets. The poor and middle class acquire liabilities that they think are assets.
- Financial aptitude is what you do with money once you make it, how you keep people from taking it from you, how to keep it longer, and how you make money work hard for you.
- The single most powerful asset we all have is our mind.
Quotes from Rich Dad Poor Dad
- There is a difference between being poor and being broke. Broke is temporary. Poor is eternal.
- Money comes and goes, but if you have the education about how money works, you gain power over it and can begin building wealth.
- People’s lives are forever controlled by two emotions: fear and greed.
- So many people say, ‘Oh, I’m not interested in money.’ Yet they’ll work at a job for eight hours a day.
- Thinking that a job makes you secure is lying to yourself.
- Intelligence solves problems and produces money.
- You must know the difference between an asset and a liability, and buy assets.
- An asset puts money in your pocket. A liability takes money out of your pocket.
- Illiteracy, both in words and numbers, is the foundation of financial struggle.
- Money often makes obvious our tragic human flaws, putting a spotlight on what we don’t know.
- Cash flow tells the story of how a person handles money.
- Most people don’t understand why they struggle financially because they don’t understand cash flow.
- The number-one expense for most people is taxes.
- Higher incomes cause higher taxes. This is known as “bracket creep.”
- More money seldom solves someone’s money problems.
- The fear of being different prevents most people from seeking few ways to solve their problems.
- A person can be highly educated, professionally successful, and financially illiterate.
- Many financial problems are caused by trying to keep up with the Joneses.
- Once you understand the difference between assets and liabilities, concentrate your efforts on buying income-generating assets.
- The problem with simply working harder is that each of these three levels takes a greater share of your increased efforts. You need to learn how to have your increased efforts benefit you and your family directly.
- Wealth is a person’s ability to survive so many number of days forward—or, if I stopped working. today, how long could I survive?
- The rich buy assets. The poor only have expenses. The middle class buy liabilities they think are assets.
- The rich focus on their asset columns while everyone else focuses on their income statements.
- Financial struggle is often directly the result of people working all their lives for someone else.
- The mistake in becoming what you study is that too many people forget to mind their own business. They spend their lives minding someone else’s business and making that person rich.
- To become financially secure, a person needs to mind their own business.
- Financial struggle is often the result of people working all their lives for someone else.
- The primary reason the majority of the poor and middle class are fiscally conservative—which means, ‘I can’t afford to take risks’—is that they have no financial foundation.
- One of the main reasons net worth is not accurate is simply because, the moment you begin selling your assets, you are taxed for any gains.
- A new car loses nearly 25 percent of the price you pay for it the moment you drive it off the lot.
- Keep expenses low, reduce liabilities, and diligently build a base of solid assets.
- Kiyosaki says he owns business that do not require his presence. “If I have to work there, it’s not a business. It becomes my job.”
- According to Kiyosaki, real assets fall into the following categories:
- For people who hate real estate, they shouldn’t buy it.
- Kiyosaki generally holds real estate for less than seven years.
- Start minding your own business. Keep your daytime job, but start buying real assets, not liabilities.
- When Kiyosaki says mind your own business, he means building and keeping your asset column strong. Once a dollar goes into it, never let it come out.
- The best thing about money is that it works 24 hours a day and can work for generations.
- An important distinction is that rich people buy luxuries last, while the poor and middle class tend to buy luxuries first.
- A true luxury is a reward for investing in and developing a real asset.
- Kiyosaki’s rich dad did not see Robin Hood as a hero. He called Robin Hood a crook.
- If you work for money, you give the power to your employer. If money works for you, you keep the power and control it.
- Each dollar in my asset column was a great employee, working hard to make more employees and buy the boss a new Porsche.
- Kiyosaki reminds people that financial IQ is made up of knowledge from four broad areas of expertise
- Understanding markets
- The law
- A corporation earns, spends everything it can, and is taxed on anything that is left. It’s one of the biggest legal tax loopholes that the rich use.
- Garret Sutton’s books on corporations provide wonderful insight into the power of personal corporations.
- Often in the real world, it’s not the smart who get ahead, but the bold.
- Kiyosaki sees one thing in common in all of us, himself included. We all have tremendous potential, and we all are blessed with gifts. Yet the one thing that holds all of us back is some degree of self-doubt.
- In Kiyosaki’s personal experience, your financial genius requires both technical knowledges as well as courage.
- Kiyosaki always encourages adult students to look at games as reflecting back to them what they know and what they need to learn.
- Games reflect behavior. They are instant feedback systems.”“Financial intelligence is simply having more options.”
- The single most powerful asset we all have is our mind. If it is trained well, it can create enormous wealth.
- The world is always handing you opportunities of a lifetime, every day of your life, but all too often we fail to see them.
- Richard uses two main vehicles to achieve financial growth: real estate and small-cap stocks.
- Simple math and common sense are all you need to do well financially.
- The problem with ‘secure’ investments is that they are often sanitized, that is, made so safe that the gains are less.
- It is not gambling if you know what you’re doing. It is gambling if you’re just throwing money into a deal and praying.
- Most people never get wealthy simply because they are not trained financially to recognize opportunities right in front of them.
- Great opportunities are not seen with your eyes. They are seen with your mind.
- You want to know a little about a lot” was rich dad’s suggestion.
- Job is an acronym for ‘Just Over Broke.
- Look down the road at what skills they want to acquire before choosing a specific profession and before getting trapped in the Rat Race.
- Education is more valuable than money, in the long run.
- The reason so many talented people are poor is because they focus on building a better hamburger and know little to nothing about business systems.
- The main management skills needed for success are:
- Management of cash flow
- Management of systems
- Management of people
- The most important specialized skills are sales and marketing.
- To be truly rich, we need to be able to give as well as to receive.
- Giving money is the secret to most great wealthy families.
- The primary difference between a rich person and a poor person is how they manage fear.
- There are five main reasons why financially literate people may still not develop abundant asset columns that could produce a large cash flow. The five reasons are:
- Bad habits
- For most people, the reason they don’t win financially is because the pain of losing money is far greater than the joy of being rich.
- Failure inspires winners. Failure defeats losers.
- Real estate is a powerful investment tool for anyone seeking financial independence or freedom.
- A great property manager is key to success in real estate.
- The most common form of laziness is staying busy.
- Rich dad believed that the words ‘I can’t afford it’ shut down your brain. ‘How can I afford it?’ opens up possibilities, excitement, and dreams.”
- Whenever you find yourself avoiding something you know you should be doing, then the only thing to ask yourself is, ‘What’s in it for me?’ Be a little greedy. It’s the best cure for laziness.”
- Richard has found that many people use arrogance to try to hide their own ignorance.
- Opportunities are everywhere and People don’t train to get it.
- To find million-dollar ‘deals of a lifetime’ requires us to call on our financial genius.
- A reason or a purpose is a combination of ‘wants’ and ‘don’t wants.’
- Most people simply buy investments rather than first investing in learning about investing.
- Richard believes one of the hardest things about wealth-building is to be true to yourself and to be willing to not go along with the crowd.
- The rich uses money to make more, not to pay bills.
- The sophisticated investor’s first question is: ‘How fast do I get my money back?’
- If Richard could leave one single idea with you, it is that idea. Whenever you feel short or in need of something, give what you want first and it will come back in buckets.
- In the world of accounting, there are three different types of income:
- Ordinary Earned
PDF of Rich Dad Poor Dad
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Summary of Rich Dad Poor Dad
Robert Kiyosaki and Mike’s story begins in 1956 in Hawaii, when both boys were nine years old. Their first money-making scheme was a counterfeit nickel manufacturing company. They made plaster molds of the nickels and filled them with melted lead toothpaste tubes to make the nickels. Mike’s father, who informed the boys of their illegal activity, foiled their plan. After that day, the boys spent their free time learning about finance and economics from Mike’s rich father. The first lesson Mike’s father taught the boys was to despise the “Rat Race.” He accomplished this by forcing the boys to work for three hours in one of his grocery stores for ten cents an hour.
The lesson is to get out of the “Rat Race” and have people work hard to put money in your pocket instead of spending your entire life working to put a little money in your pocket and a lot of money in someone else’s pocket. This was the most important lesson taught to the boys out of all the others. The poor and middle classes work for money, fear and greed cause ignorance and poverty, and the importance of acting on one’s emotions rather than thinking with one’s emotions. The author also emphasizes that opportunities come and go in life; the wealthy recognize them immediately and convert them into gold bullions. Others miss out on these opportunities because they are too preoccupied with money and security. “That’s all they’re going to get,” the author says.
The concept represented by the big 1920’s entrepreneurs is still prevalent today, with some professional athletes making poor financial decisions and ending up with nothing. This lesson is intended to teach people not to be wise with their money once they have it, but rather to be wise with their money before they have it. In a sense, don’t try to build a skyscraper or even a house without first laying a solid foundation. According to Kiyosaki, there is one and only rule that can help a person build a strong foundation: know the difference between an asset and a liability, and control only assets.
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