“Wealthy Dad Poor Dad” by Robert Kiyosaki is a traditional on this planet of private finance. The e-book shares the monetary knowledge that Kiyosaki discovered from his two “dads”: his organic father (the “Poor Dad”) and the daddy of his greatest buddy (the “Wealthy Dad”). Whereas each have been profitable in their very own methods, their attitudes in the direction of cash have been very totally different. Listed below are eight vital cash classes from the e-book in Kiyosaki’s phrases:
1. The Wealthy Don’t Work for Cash
“The poor and the middle-class work for cash. The wealthy have cash work for them.”
Kiyosaki’s “Wealthy Dad” taught him early on that most individuals spend their lives working for cash, whether or not it’s via a job, a enterprise, or perhaps a facet hustle. Nonetheless, the actually rich perceive that cash must be working for them. As an alternative of simply counting on a pay-check, they put money into belongings that generate revenue, equivalent to shares, bonds, actual property, or companies.
Mirror: Are you working for cash, or is your cash working for you?
2. It’s Not How A lot Cash You Make, However How A lot Cash You Maintain
“It’s not how a lot cash you make, however how a lot cash you retain, how laborious it really works for you, and what number of generations you retain it for.”
Many individuals imagine that incomes a excessive revenue is the important thing to turning into rich. Nonetheless, Kiyosaki factors out that it’s not about how a lot you make, however how a lot you retain. Excessive-income earners can nonetheless be financially struggling in the event that they don’t handle their cash effectively. The important thing to constructing wealth is saving and investing correctly.
Tip: Monitor your bills and discover areas the place it can save you extra.
3. The Significance of Monetary Training
“An individual could be extremely educated, professionally profitable, and financially illiterate.”
Kiyosaki emphasizes a crucial hole in training, the place many college students graduate with out important monetary abilities. Consequently, educated people typically wrestle financially regardless of skilled success. This lack of monetary aptitude—realizing easy methods to handle, retain, and become profitable work for them—results in misunderstandings about money stream. They’ve discovered easy methods to work laborious for cash however not easy methods to make their cash work laborious for them.
Mirror: Are there any monetary ideas that you just really feel unsure about and wish to study extra?
4. The Distinction Between Property and Liabilities
“An asset places cash in my pocket. A legal responsibility takes cash out of my pocket.”
Understanding the distinction between belongings and liabilities is key to monetary success. Kiyosaki explains that belongings, like investments, generate revenue, whereas liabilities, like debt, take cash away. The aim is to accumulate extra belongings and cut back liabilities.
Tip: Make a listing of your present belongings and liabilities.
5. Thoughts Your Personal Enterprise
“The wealthy deal with their asset columns whereas everybody else focuses on their revenue statements.”
In Chapter three, Kiyosaki says: to grow to be financially safe, an individual must thoughts their very own enterprise. Your online business revolves round your asset column, not your revenue column. ……. We hear so typically: “I want a increase.” “If solely I had a promotion.” “I’m going again to high school to get extra coaching so I can get a greater job.” “I’m going to work additional time.” “Perhaps I can get a second job.” In some circles, these are wise concepts. However you might be nonetheless not minding your individual enterprise. These concepts all nonetheless deal with the revenue column and can solely assist an individual grow to be extra financially safe if the extra cash is used to buy income-generating belongings.
Kiyosaki argues that focusing solely on the revenue column limits your monetary potential. As an alternative, he encourages readers to “thoughts your individual enterprise” by specializing in the asset column—creating and buying belongings that generate revenue.
Tip: Begin constructing your asset column at this time.
6. Work to Study, To not Earn
“Job safety meant all the pieces to my educated dad. Studying meant all the pieces to my wealthy dad.”
Kiyosaki advises individuals to decide on jobs and careers that supply studying alternatives reasonably than simply specializing in the pay-check. By gaining abilities and data, you’ll be able to improve your incomes potential and open up new alternatives for monetary development.
Mirror: Consider your present job. Are you studying new abilities that may improve your future incomes potential?
7. Pay your self first
One of many key rules Kiyosaki teaches is the significance of paying your self first. This implies prioritizing saving earlier than spending on payments & discretionary gadgets. By persistently setting apart a portion of your revenue for investments, you guarantee that you’re steadily constructing wealth.
Kiyosaki says:
“Should you can not get management of your self, don’t attempt to get wealthy. It is not sensible to speculate, become profitable, and blow it. It’s the lack of self-discipline that causes most lottery winners to go broke quickly after profitable thousands and thousands. It’s the lack of self-discipline that causes individuals who get a increase to right away exit and purchase a brand new automobile or take a cruise.”
Tip: Arrange an automated switch to your financial savings every time you obtain your pay-check.
8. Overcome the Worry of Dropping Cash
“Winners are usually not afraid of shedding. However losers are. Failure is a part of the method of success.”
Worry of shedding cash can maintain you again from taking dangers that may result in monetary success. Kiyosaki encourages readers to take calculated dangers, study from their errors, and never let the concern of failure stop them from pursuing wealth-building alternatives.
Mirror: What monetary dangers have you ever averted as a result of concern? Begin small.
9. Investing shouldn’t be Playing
“It isn’t playing if you already know what you’re doing. It’s playing in the event you’re simply throwing cash right into a deal and praying.”
Kiyosaki makes an vital distinction between knowledgeable investing and playing. He highlights that profitable investing requires data, analysis, and technique, reasonably than mere luck. Once you perceive the market, analyse potential dangers and rewards, and make knowledgeable selections, you might be participating in a calculated funding reasonably than playing.
Tip: Earlier than making any funding, do your analysis.
Manner ahead!
By reflecting on these classes and taking actionable steps, you can begin constructing a powerful monetary basis. Whether or not you’re simply beginning your monetary journey or trying to refine your methods, the knowledge from “Wealthy Dad Poor Dad” presents beneficial steering for reaching monetary independence.
