20 key Lessons from Rich Dad Poor Dad
Rich Dad Poor Dad is about Robert Kiyosaki and his two father — his real father i.e poor dad and the father of his very best friend i.e rich dad, and how the two of them men influenced his thoughts about money and investing.
The book is one of the great business books in the whole world, is a true life story about Robert Kiyosaki and his two dads(fathers) which narrated how growing up with them shaped his financial views and intelligent.
The “poor dad” or father” is Kiyosaki’s biological father, a highly educated and intelligent college professor. The “rich dad” is Kiyosaki’s best friend’s father, who is a wealthy entrepreneur who owns dozens of businesses. Both dads offer contrary advice on money and finances.
The book offered as a good reminder that the more time you spend on your education especial financial education, the more financially independent you’ll be able to be. One of the important topics inside the book is how people get hook up in a rat race i.e go to school to find a safe, and secure jobs, that have so many benefits and good pay salary.
They have belief of saving their money little by little, pay their bills and expenses first , and then spend what they have left over last, only to repeat the same cycle for the rest of their working live. According to him this will never allowing them to get ahead or become financially independent.
What is the theme of Rich Dad Poor Dad?
The author claims that there are other ways to become financially independent by making money work for you as opposed to working for money your whole life. Many people work very hard in their life, few work 10+ hours or even more in a day but eventually do not save much and never get rich.
Poor Dad Mindset
“Poor dad” believes that one should work for money as a single-salary employee at a stable job, and that a person’s wealth largely depends on their classroom educational background. He believes that the most important things you can do to gather wealth is to get job and work for money.
This mindset can tempt a person into working a job they don’t love, but willing to stick with the job because they have to pay the bills.
Rich Dad Mindset
“Rich dad” tells Kiyosaki to get a job so he can learn the valuable skills required to be an entrepreneur. Wealth comes from real experience-based learning and multiple income streams. When the “poor dad” encourages working your way up the ladder, “rich dad” laughs and says, “Why not own the ladder?”
However, the advice in “Rich Dad, Poor Dad” — and from Kiyosaki himself — have gained some controversial attention, as many people especially Nigeria still believe in outdated system of education, the book does offer a handful of powerful lessons that can be useful to anyone looking broaden their views on financial freedom..
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Rich Dad Poor Dad Review
I will be very glad to share educative summary of this wonderful book and the important lessons we can take away from it. Robert Kiyosaki explains smart ways to escape the “rat race”of working hard without accumalation of wealth. Below are summary of the book for your quick, better grasp of the book content.
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20 key lessons from the book Rich Dad Poor Dad Book
- Many people see their profession as their income and they live through their work to survive. While rich people, assets they maintain, invest is their income.
- If you want to buy something, you must first generate enough cash flow from your assets to cover these expenses. Buy luxuries last, not first.
- Excess cash flow generated by your assets should be invested again into other assets
- Do not simply aim for more income, aim for more valuable assets, repeat the circle.
- Reduce your expenses low and reduce your liabilities.
- Create a corporation to protect your assets and reduce tax expenses. An employee earns, gets taxed, and then spends what is left.
- Know a little about a lot. Learn something about accounting, investing, markets, the law, sales, marketing, leadership, writing, speaking, and communication. Now little about everything.
- Work to learn, don’t work to earn. Find a job where you can learn one or more of the above-mentioned skills.
- Do not simply buy investments. first, learn how to invest as no one else can do it better than you.
- You become what you study, so choose your study materials carefully and do read a lot.
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12. Failure inspires winners and defeats losers. Do not be afraid of losing and be bold enough to admit and learn from the failure. No one is born perfect.
13. Be in control over your emotions. Do not let fear or opinions of the general public dictate your actions.
14. Most sellers ask too much. It is rare that the asking price is lower than something is worth.
15. Surround yourself with winners. Sit with people who are smarter than you and you can learn from them,
16. Saying “I can’t afford it” shuts down your brain. Asking “How can I afford it?” opens up your brain.
17. Pay yourself first. Each month, first invest a certain amount of money into income generating assets before you pay your bills. Short of money, use this pressure to keep yourself on your toes.
18. Dream big, have a clear game plan in your mind. Always seek answers to important questions such as Why do you want to earn more passive income? For me, because I do not want to work all my life. I want to have control over how I decide to spend my time. Also, I want to support my parents financially because they helped me all my life.
19. Develop a skill to listen. Listening is more important than talking. Do not constantly argue and think with your mouth. Ask questions, grab as much knowledge as you can from others.
20. On the market: do not follow the crowd, and do not try to time the market. Profits are made when you buy, not when you sell.
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Better understanding of this book like other great books can make you rich, say self-made millionaires if you rightly follow all the useful lessons in the book. Here are some essential takeaways quotes from the book scroll down to read my favorite top 10 quotes from Rich Dad, Poor Dad that blow me off and I found them worthy of sharing!
10 Education is more valuable than money, in the long run.
9 Often in the real world, it’s not the smart who get ahead, but the bold.
8 Unfortunately for many people school is the end, not the beginning.
7 Once a person stops searching for information and self-knowledge, ignorance sets in.
6 I have found that the more I teach those who want to learn, the more I learn.
5 I’ve learned that, without a strong reason or purpose, anything in life is hard.
4 Today, I often meet people who are too busy to take care of their wealth. And there are people too busy to take care of their health. The cause is the same. They’re busy, and they stay busy as a way of avoiding something they do not want to face.
3 “Failure inspires winners. And failure defeats losers. It is the biggest secret of winners. It’s the secret that losers do not know. The greatest secret of winners is that failure inspires winning; thus, they’re not afraid of losing.”
2 “one dad had a habit of saying, “I can’t afford it.” The other dad forbade those words to be used. He insisted I ask, “How can I afford it?” One is a statement, and the other is a question. One lets you off the hook, and the other forces you to think.”
1 “Right now, it’s not so much what you know anymore that counts, because often what know is old. It is how fast you learn. That skill is priceless.
Look forward to summary of great Business books like this next time
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