RICH DAD POOR DAD - 30 lessons from the bible of modern wealth
"The only difference between a rich person and poor person is how they use their time." Robert Kiyosaki
What the rich teach their kids about money that the poor and the middle class do not!
1. Don’t work for money:
Rich people don't work for pay. Your mind will learn to think like an employee if you labor for pay. You will perceive things differently if you begin to think differently, like a rich man. Rich works on their asset column; each and every dollar is the result of their diligent workers.
2. Don’t be controlled by emotions:
Some people's life are always ruled by the two emotions of fear and greed. People who are afraid are trapped in a cycle of working hard, making money, and hope that eventually their dread would go away. Second, the majority of us have a desire to become wealthy rapidly. Yes, a lot of people get wealthy over night, but they lack financial literacy. In order to avoid becoming greedy or afraid, educate yourself.
3. Acquire assets:
On the road to financial freedom, avoid purchasing liabilities. Liabilities are often purchased by those who mistake them for assets. Many people invest in luxury items first, such as large automobiles, bulky bicycles, or enormous homes. But the wealthy acquire assets, and those assets acquire luxury goods. The wealthy rent and buy homes, and they also pay for their Lamborghinis. The wealthiest purchase luxury items last, while the poor or middle class purchase them early.
4. Remember the KISS principle:
Keeping It Simple, Stupid is abbreviated as KISS. When you begin your journey toward financial freedom, try not to overthink things. Keep things simple; they are, after all, simple. Assets put money in your pocket, whereas liabilities take money out of your pocket. Always invest in items that will provide income for you.
5. Know the difference between assets and liabilities:
Assets are anything that puts money in your pocket, like stocks, bonds, real estate, mutual funds, rental properties, etc. Liabilities are anything that pulls money out of your pocket, like your house, your car, debt, etc. People think their home is their biggest asset, but it is not. A house is an asset when it generates money like when you rent a house, it generates money, and when your life in that house becomes a liability.
6. Don’t be a financial illiterate:
A person can be highly educated and become successful in their profession, but financially illiterate. Financial education is very important for any individual. Our schools and colleges did not teach us financial education. Many financial problems arise as a result of a lack of financial education.
7. Increase your Wealth:
Wealth is defined as a person's ability to survive for a certain number of days in the future, or how long they could survive if they stopped working today. Consider your wealth and whether you would survive if you stopped working today for a year.
8. Mind your own business:
If you have a job, keep your job and start a part-time business and work it. Use the time that you spend on your iPhone, parties, or any other activity, to build your business. Never leave your job until you build your own business. Don’t struggle all of your life for someone else. Start your own business and grow your business.
9. Train your mind:
Your biggest asset is your mind. Many individuals watch opportunities with their eyes, but if you train your mind, you can see opportunities with your mind. If you train your mind well, it can create enormous wealth.
10. Learn technical skills:
Your financial IQ will be raised by learning these four technical skills:
• Accounting is defined as the ability to read numbers. If you want to build an empire, then this is an essential skill. By learning this skill, you will be able to understand the strength and weaknesses of a business.
• Investing: It is the science of making money.
• Understanding markets: It is the science of supply and demand.
• Tax Laws: A person who has knowledge of the laws of tax advantages and corporations can get rich faster than others.
11. Find opportunities that everyone else missed:
"Great opportunities are not seen with your eyes. They are seen with your mind." - Robert Kiyosaki
You can see many more opportunities with your mind than many people miss with their eyes. It is not rocket science, you just need to train your mind.
12. Learn to manage risk:
Investment is not risky, not knowing the investment is risky. If you want to reduce the risk, then increase your knowledge. This knowledge will not come by going to college, it will come by reading books or sitting with people who know the investment.
13. Learn management:
The main management skills are:
• Management of cash flow
• Management of system
• Management of people
Sales and marketing are the most essential skills. The ability to sell and the ability to communicate with another human being, be it a customer, employee, fiancé, friend, or child, is a basic skill of personal success.
14. Manage fear:
“Failure inspires winners. Failure defeats losers.” - Robert Kiyosaki
Everyone is concerned about losing money. It is a generalization. The wealthy are also afraid of losing money, and most wealthy people lose a lot of money. The main difference between the rich and the poor, however, is how they deal with fear. The fear of losing money is far more terrifying for many people than the joy of having money.
15. Find a reason:
Everyone wants to be rich, but many of us don’t want to struggle. People often ask me why I want to be rich. I answered that I don’t want to die poor. Choose your reason, like you want to help others, you want to build hospitals, or you want to travel freely. If you don’t have a reason, then it is difficult to stay on this path.
16. Choose friends carefully:
Do not choose friends by watching their financial statements. Choose friends from among the rich as well as the poor. Learn from both. Both will tell you the best lessons but choose carefully.
17. Pay yourself first:
If you cannot get control of yourself, then it is difficult to get rich. If you lack management, then it is difficult to be rich. First, pay yourself. People often buy cars or luxuries when they have money. On the other hand, the rich buy assets, and their assets buy luxuries for them.
18. Use assets to buy luxuries:
When you get paid by your job or when you earn some money, don’t buy luxuries first. Buy an asset and your asset will pay you for your luxuries. Poor buy luxuries first and the rich buy luxuries last.
19. Understand the power of giving:
If you want money, start giving money. If you give, you will receive more than you give. Always do charity in your life. It should be your habit.
20. Read books:
In this book, Robert mentions many books that you need to read. Reading books will open your mind and you will learn too many things. This will open your mind and may give you a good direction in your life.
21. Stop doing what you are doing:
Pause your life and see what’s working and what’s not. Are you reaching towards financial freedom not?
22. Look for new ideas:
Let ideas come across your brain. Read books, articles, and listen to podcasts that provide your knowledge. It will open up your mind and provide space for new ideas.
23. Find someone an expert:
By expert, I mean the person who has already done what you want to do. Make good friends who are actual doers. Talk to financial experts like accountants, tax officers, brokers, bankers, etc if possible.
24. Cultivate knowledge:
Focus on increasing your knowledge and it will help you to earn more. As your knowledge get increasing, you get more opportunities.
25. Make offers:
When you see a new opportunity, try to grab it. Especially in real estate, make as many offers as you can. Maybe you won’t get all offers but some of them.
26. Explore new places:
Travelling can be a very good option for you if you want to make money from real estate. You can get a very good deal if you explore new places. Most people don’t even explore their neighbourhoods.
27. Negotiate:
If you want to make money good from real estate, then you need to bargain. Property owners will always ask for more than their property worth.
28. Look in the right place:
Do market research and market direction. The panic market is good for investors. Most investors make their most money in an economic downturn. It’s also about the right location. In real estate, what matters is location, location, and location.
29. Think big:
Don’t settle for small gains. Most people settle down after getting a small success. Well, that’s not bad but it won’t make you rich.
30. Action always beats inaction.
This knowledge doesn’t make any sense for you if you don’t want to take action.
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