“Wealthy Dad Poor Dad” by Robert Kiyosaki is a traditional on the planet of non-public 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 finest pal (the “Wealthy Dad”). Whereas each had been profitable in their very own methods, their attitudes in direction of cash had 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 by means of a job, a enterprise, or perhaps a facet hustle. Nonetheless, the actually rich perceive that cash needs to be working for them. As an alternative of simply counting on a pay-check, they put money into property that generate earnings, resembling 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 consider that incomes a excessive earnings is the important thing to changing 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 properly. The important thing to constructing wealth is saving and investing properly.
Tip: Observe your bills and discover areas the place it can save you extra.
3. The Significance of Monetary Schooling
“An individual may be extremely educated, professionally profitable, and financially illiterate.”
Kiyosaki emphasizes a important hole in training, the place many college students graduate with out important monetary abilities. Because of this, educated people usually battle financially regardless of skilled success. This lack of economic aptitude—figuring out how you can handle, retain, and generate profits work for them—results in misunderstandings about money stream. They’ve discovered how you can work laborious for cash however not how you can make their cash work laborious for them.
Mirror: Are there any monetary ideas that you just really feel unsure about and wish to be taught extra?
4. The Distinction Between Belongings and Liabilities
“An asset places cash in my pocket. A legal responsibility takes cash out of my pocket.”
Understanding the distinction between property and liabilities is key to monetary success. Kiyosaki explains that property, like investments, generate earnings, whereas liabilities, like debt, take cash away. The objective is to amass extra property and scale back liabilities.
Tip: Make a listing of your present property and liabilities.
5. Thoughts Your Personal Enterprise
“The wealthy give attention to their asset columns whereas everybody else focuses on their earnings statements.”
In Chapter three, Kiyosaki says: to turn into financially safe, an individual must thoughts their very own enterprise. Your small business revolves round your asset column, not your earnings column. ……. We hear so usually: “I want a elevate.” “If solely I had a promotion.” “I’m going again to highschool to get extra coaching so I can get a greater job.” “I’m going to work time beyond regulation.” “Possibly I can get a second job.” In some circles, these are smart concepts. However you’re nonetheless not minding your individual enterprise. These concepts all nonetheless give attention to the earnings column and can solely assist an individual turn into extra financially safe if the extra cash is used to buy income-generating property.
Kiyosaki argues that focusing solely on the earnings column limits your monetary potential. As an alternative, he encourages readers to “thoughts your individual enterprise” by specializing in the asset column—growing and buying property that generate earnings.
Tip: Begin constructing your asset column in the present day.
6. Work to Be taught, To not Earn
“Job safety meant the whole lot to my educated dad. Studying meant the whole lot to my wealthy dad.”
Kiyosaki advises individuals to decide on jobs and careers that provide studying alternatives quite 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 objects. By constantly setting apart a portion of your earnings for investments, you guarantee that you’re steadily constructing wealth.
Kiyosaki says:
“If you happen to can’t get management of your self, don’t attempt to get wealthy. It is not sensible to take a position, generate profits, and blow it. It’s the lack of self-discipline that causes most lottery winners to go broke quickly after profitable tens of millions. It’s the lack of self-discipline that causes individuals who get a elevate to right away exit and purchase a brand new automobile or take a cruise.”
Tip: Arrange an computerized switch to your financial savings every time you obtain your pay-check.
8. Overcome the Concern of Dropping Cash
“Winners usually are not afraid of shedding. However losers are. Failure is a part of the method of success.”
Concern of shedding cash can maintain you again from taking dangers which may result in monetary success. Kiyosaki encourages readers to take calculated dangers, be taught from their errors, and never let the worry of failure forestall them from pursuing wealth-building alternatives.
Mirror: What monetary dangers have you ever prevented because of worry? Begin small.
9. Investing will not be Playing
“It isn’t playing if you understand what you’re doing. It’s playing for those who’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, quite than mere luck. Once you perceive the market, analyse potential dangers and rewards, and make knowledgeable selections, you’re partaking in a calculated funding quite than playing.
Tip: Earlier than making any funding, do your analysis.
Approach 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 seeking to refine your methods, the knowledge from “Wealthy Dad Poor Dad” gives helpful steering for attaining monetary independence.