Many people work very hard in their life, few work more than
ten hours a day but can not save money nor do they get rich. Rich Dad Poor Dad
book identifies smart ways to escape this “rat race” of working for unlimited
hours yet struggling to make ends meet.
Robert Kiyosaki had two fathers: a rich one and a poor one.
One was highly educated with a Ph.D. and so intelligent he completed his
undergraduate degree in only two years. The other father didn’t even finish the
eighth grade. While both men worked hard, were successful, and earned a lot of
money, there was always one who struggled with money. And the other dad, well,
he became one of the richest people in Hawaii.
By having two dads, with entirely different mindsets,
Kiyosaki found himself comparing the two dads a lot. It was hard to figure out
which dad he should listen to. Neither had found success yet. And both were
experiencing financial struggles as they were still early in their careers.
Schools don’t provide financial education. Thus, causing the
poor and middle class to be in debt. If millions of people need financial or
medical assistance, Medicare and Social Security may run out.
Transitioning from the mindset of “I can’t afford it” to
“How can I afford it?” forces you to think instead of letting yourself off the
hook.
SO LETS TALK ABOUT THE LESSON I LEARNT FROM THIS BOOK
1. Most people work
for money — rich people have money work for them
This lesson has become such a cliché that many consider it
to be a myth. But it's absolutely true.
Talk to just about anyone about how to make money, and the
conversation will inevitably gravitate toward jobs. That's not wrong thinking
either, at least not early in your life. The first step toward building wealth
is generating a basic income. If you have no assets, and no skills you can sell
to the general public in exchange for money, a job is certainly the most
convenient way to produce a cash flow.
But the difference between rich people and everyone else is
that the rich don't stay in the job phase for very long. They realize early
that to become rich, they need to become the people who hire others into jobs,
and not a job holder. By contrast, the rest of us typically spend our lives in
the job phase. And we're trapped once they believe that a job is the only way
to earn money. That locks you into working for money for the rest of your life.
But the rich learn the virtue of becoming business owners
early. And running a business is, more than anything else, about learning how
to leverage resources and people to earn more money than you ever could by
exchanging your own labor for a wage.
2. Focus On Financial
Education.
How strange it is that we want good grades, go to good
colleges, get high paying jobs to earn money, but we learn nothing about money.
School never teach us to earn money.The truth is- one cannot get rich by formal
college education.
Therefore, most of the millionaires and billionaires are
college dropout. That does not mean you have to drop out to get rich.You just
need to invest your time in Financial Education. You need to learn about money,
how it works, how to manage it and how to multiply. This is what Rich Dad Poor
Dad will teach
3. Mind Your own
Business
Your profession and your business are different from each
other. You should not rely on your job to become financially secure; instead,
focus on your own business and develop your assets. As Kiyosaki puts it,
“financial struggle is often directly the result of people working all their
life for someone else. Many people will have nothing at the end of their
working days.” Acquire assets and use them to purchase income-generating, real
assets. The rich dad further noted that real assets are anything with value –
stocks, bonds, mutual funds, income-producing real estate, notes, royalties
from intellectual property, etc.
4. Divert Your Focus
From Your Income Statement To Asset Column.
People think that more income will solve their financial
problem and so they focus on their Income Statement. They want to earn more and
save the extra money. But gradually the ‘extra’ money no longer remains as
extra. They want a pay raise again and the only thing to earn more is their
job.
Rich Dad Poor Dad teaches you to focus on your Asset Column
to acquire assets that brings you more and more money with putting very less or
no effort.
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