Rich Dad Poor Dad
Rich Dad Poor Dad – This book is written by the American businessman, Robert Kiyosaki. It was published in 1997 and sold more than 3Cr copies. This book is soo popular because it tells about money to the middle class which was not taught in their upbringing. He has talked about 2 fathers. One his own who is a Ph.D. who is the poor dad. And the other is his best friend’s father who is a businessman dad and is a rich dad. Though this book has many learnings, I will cover the top 5 which I feel are the best.
First lessons that teach us book Rich Dad Poor Dad
The first lesson is not to run away from challenges rather find opportunities in them. In middle-class families, kids are told that they cannot afford this which leads them to believe that a lot is out of their reach. On the other hand, rich kids are taught that if they want something, how can they afford it. So if you say that you cannot afford something. You yourself kill all its opportunities and stop thinking about it. If you start thinking that how can you afford it, then your mind automatically starts to make way. And then you create opportunities yourself and you create wealth too.
Second lessons that teach us book Rich Dad Poor Dad
The second lesson is what is your net worth and how much you earn. Robert Kiyosaki said that even though his father was a Ph.D., he didn’t use to have money by month-end. On the other hand, the rich dad in the book, who was not even a high school graduate has all his focus on acquiring assets and retain all info.
Assume that you earn 1 lakh and save only 5% and keep it in the saving account. Whereas your friend earns 5000 and saves 20-30% and uses it to acquire assets. So he has a higher potential of making more wealth than you. You should focus on saving and acquiring assets.
Third lessons that teach us book Rich Dad Poor Dad
The third lesson is to take risks. Kids in middle-class families always encouraged not to take risks and especially in money matters. He says that you should learn to live with risks. Because if you want to create wealth, you need to take calculated risks. And as you start accumulating wealth, you will learn how to manage risks. The middle class is scare of taking risks because they don’t have the capacity to bear the loss. The rich are not scare of making mistakes, rather they learn and do not repeat the mistake.
Fourth lessons that teach us this book
The fourth lesson is that we all should educate ourselves in personal finance. According to Robert Kiyosaki, we should know these 4 things about personal finance.
- The first being basic accounting so that we can read the financial statements of companies.
- The second is investing so that we can grow our money.
- The third being one should know the basics of the financial markets.
- The fourth is tax soo that we can protect what we earn.
- It seems that the rich start losing their wealth gradually due to a lack of financial education.
Fifth lessons that teach us this book
The fifth lesson is that you cannot work for someone for a lifetime and create wealth. The employee trades his time for a monthly salary and the employers try to take out worth more than he pays. Rich Dad Poor Dad tells us how one earns less than their potentials in a job. So when you do a business and work for yourself, there is no ceiling on your income. No more you will be able to save and the more you save more you can invest. And the more you invest, the more you will be able to acquire assets.