In case you haven’t heard about it, “Rich Dad Poor Dad” is a classic book that talks all about the different habits that separate the rich from the poor. Here, Robert Kiyosaki talks about his two fathers. His biological father, who was a highly educated man but struggled financially, and the father of his best friend, who was a high school dropout but became a wealthy businessman.
Within Rich Dad Poor Dad are a lot of financial lessons that can be used by anyone looking to grow their wealth. Here are some of the biggest takeaways from the book.
The rich don’t work for money
Wealthy people don’t rely on paychecks to generate income. Instead, they invest their money in assets that generate passive income. These include businesses, real estate, or even stocks. These allow them to live off of the income that their assets produce, without having to work a traditional job.
Of course, this doesn’t mean that wealthy people don’t work at all. Many of them work very hard, but they do so with the goal of generating wealth. They may start their own businesses, invest in real estate, or become entrepreneurs. They may also work in high-paying jobs, but they use their income to invest in assets that will generate even more income in the future. On the other hand, the poor often work with the goal of buying their next big liability. Be it a car, luxury goods, or expensive gadgets. Generally, things that don’t generate passive income.
The main message here from Rich Dad Poor Dad is that if you want to become wealthy, you need to start thinking like the rich. You need to invest your money in assets that will generate passive income.
Dare to take calculated risks
It’s important to be willing to take risks in order to achieve your financial goals. However, the book Rich Dad Poor Dad also stressed that it’s important to do your research and understand the risks involved before you make any decisions.
The rich are willing to take risks because they know it’s necessary to achieve financial success. However, they also know that there’s no such thing as sure profits. Not all risks are equal. Depending on the rewards, some risks are worth taking more than others. The key here is to understand that losses are inevitable, and that you need to make the most out of the risks you take.
Opportunities come to those who are prepared
if you are open to new ideas, then you will be more likely to see opportunities when they present themselves. It’s important to be creative and think outside the box. Even in what may seem like troublesome situations, an opportunity can always be present.
In one of the stories featured in Rich Dad Poor Dad, Kiyosaki talks about the time gas prices were rising. While most people saw it as merely an increase to their expenses, the rich saw it as an opportunity to invest in Oil companies.
Failure is part of the process
Everyone makes mistakes. It’s never a bad thing to fail. In fact, failures often provide you with valuable lessons that can help you succeed in the future. We become forced to confront our mistakes and weaknesses. It can be painful, but is ultimately essential if we want to grow.
If you study the lives of different successful people, you’ll find that failures were often present in their early lives. What can differentiate you from others is how well you accept your mistakes. The rich make it a habit to lake accountability, while the poor often put the blame on other things.
One last piece of advice that you can use to tie everything up is to get started. Start learning about the different ways we can make our money grow. Start reading on how you can profit from the stock market. And of course, start investing your money in assets that can create wealth.
