Rich Dad…Poor Dad by Robert Kiyosaki
5 takeaways
- Your money should work for you
- Financial literacy is a must
- Know the difference between an asset and a liability
- Your mindset plays a big role in wealth
- Be a perpetual learner
1. Your money should work for you
“The poor and the middle-class work for money. The rich have money work for them”
My biggest takeaway, hands down, is the idea of money working for you. At first this concept was confusing and I kept asking myself…
How can money work for me?
In a nutshell, having a stream of passive income is what it means to have money for you.
Investing in assets like stocks, real estate, and sometimes businesses allow the money you invested to make more money for you. Oh, and the nice part is you’ll also make money while you sleep.
“If you work for money, you give the power to your employer. If money works for you, you keep the power and control it”
2. Financial literacy is a must
“If you want to be rich you have to be financially literate”
Financial Literacy! Oh how I wish schools taught financial literacy like how they teach Spanish. Financial literacy stands as the foundation of building wealth. If you aren’t adept in finances it makes managing money harder.
For example, Investing in my financial literacy by learning about the difference between a 401(k), IRA, and HSA improved my chances of building wealth 100+ fold. I now know 3 vehicles that I can put my money into which will help maximize my gains for the longterm. Not taking the time to improve your financial literacy will only hinder you in building wealth.
“Financial intelligence is simply having more options. It is not so much what happens, but how many different financial solutions you can think of to turn a lemon into millions”
“Rich dad always stressed the importance of financial literacy. The better I was at understanding the accounting and cash management, the better I would be at analyzing investments and eventually starting and building my own company”
3. Know the difference between an asset and a liability
“Rule #1 You must know the difference between an asset and a liability and buy assets”
There’s definitely a huge misconception of what an asset is. For example, most people think Cars are assets. Cars aren’t assets because in most cases they take money out of your pocket instead of putting money in. I mean, new cars do lose 10% of their value once you drive it off the lot.
Knowing what determines an asset allows you to focus on investing your money into valuable resources that help build your wealth. The rich increase their assets boosting their income, while decreasing their liabilities minimizing their expenses.
“An asset puts money in my pocket. A liability takes money out of my pocket”
“Keep your day job and … keep your assets column strong. Once a dollar goes into it, never let it come out.”
4. Your mindset plays a big role in wealth
“Rich dad forbade the words, ‘I can’t afford it’. Instead he required his children to say, ‘How can I afford it’”
Your mindset is a powerful tool when making decisions and determining the outcome of your future. If you have a proactive mindset you’re more likely to succeed in future endeavors. If you have an inactive mindset well…
Those who are successful train themselves to think in ways that improve their chances of succeeding.
“The single most powerful asset we all have is our mind. If it is trained well, it can create enormous wealth.”
“It’s not the smart who get ahead, but the bold”
5. Be a perpetual learner
“Education is more valuable than money, in the long run.”
Why are successful people known for constantly reading books? It’s because they seek to continuously learn and improve. They’re always sharpening their tools for opportunities to come when they need them.
I find it funny how the importance of education subsides after college. The years after college are the years we should be learning the most.
”It’s what you know more than what you buy. Investing is not buying. It’s more a case of knowing”
“What I know makes me money. What I don’t know loses me money. Every time I have been arrogant, I have lost money. Because when I’m arrogant, I truly believe that what I don’t know is not important”
Be First to Comment