Lessons from the all time best selling finance book “Rich Dad Poor Dad by Robert Kiyosaki”

Robert kiyosaki
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In this best selling book the author talks about his two fathers, a rich and a poor father including their views about life and money.  his real father who was ‘poor’ and the father of his best friend who was ‘rich’, despite both earning a good salary. From studying their journeys, he realised that your wealth can depend more on your actions than the money you earn. He surmised that it is, therefore, important to first change your attitude about money because your thoughts lead to your actions.

Below are some lessons learnt

Don’t be scared to fail: The authors poor dad was always scared of failing and was never ready to try new things or even change his horizon. While Kiyosaki’s father had multiple qualifications, his best friend didn’t have a proper education. A degree cum laude won’t necessarily make you wealthy if you don’t have guts and an understanding of how money works too. Generating wealth sometimes involves taking risks and dealing with a level of uncertainty. The trick is to be clever about when and how to take risks, by being savvy and learning from your experiences to assess a situation, rather than dive in blindly. The path to wealth often requires you to leverage money to mitigate your risk and maximise your profit. in addition to this you don’t have to be ridiculously intelligent.

Think more of assets: This is one of the major lessons in the masterpiece. Concentrate on your net worth rather than your monthly salary. Start acquiring assets — such as stocks, bonds, or your own company to earn you money, as opposed to liabilities — such as mortgages, loans, or credit cards — which cost you money. Build your asset column first, then buy any luxuries with the income generated from these.

Don’t work for money: A major point that Kiyosaki makes is that the lower and middle classes work for their money, whereas the wealthy have money work for them. Learn how money works, then work out how to make it, independent of a paycheck. Look into how you can generate more income by investing your money wisely. And don’t give the financial power to your employer, but rather keep the power by taking control of your money and making it work for you.

Invest in financial literacy: The biggest cause of financial trouble is ignorance because this isn’t taught in many education systems or societies. Financial terms can be complex and daunting, but you can develop financial intelligence by reading about accounting and investing, and keeping informed about the markets. Kiyosaki believes that the cause of so much suffering is due to a lack of financial education. Courage plus technical knowledge will take you far.

Don’t just make money manage it: Many people are able to make money, but not everyone learns how to manage it properly. Financial intelligence starts with learning the difference between assets and liabilities. By enhancing your savings and tracking your expenses, you can become aware of your spending patterns and ensure that you have more money coming in than going out, which is what will make you richer.

Let’s know what you think in the comments section as we really appreciate your opinions also feel frre too share your lessons with us.

Author: Austine