The Principles of Rich Dad and Poor Dad

rich dad poor dad book

Books are great to understand what our real life is meant for. books let us realize our surroundings, the people around, their behavior and actions. Today we are taking a deep insight into what made us read this book? What is different in this book that attracts us? We have always seen our dad be careful in lives and careers. Teaching about good career options, study, and job.

In Rich Dad Poor Dad: We must be thinking of the story of a rich person and a poor person. But wait for the book is more than that. Why the rich are getting richer and the poor poorer? It is because their dad teaches hem the value of money, job, and career.

But no one gave the advice to become rich. Are you frustrated with listening to old thoughts of working hard for money? Are you in a need of a better working and productive life? Who to consult? What to do?

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This book by Robert Kiyosaki answers all the questions we need to be answered to. We comprise this book in three sentences:

  1. The perspective of becoming rich by author two dads: his real father(poor dad) and dad of his friend(rich dad).
  2. A high income cannot make you rich
  3. Poor work for money, rich make money work for them.

I came around this book because I was tired of the outdated mantra ” Go to school, go to college, get a job, play it safe.” Life is getting boring playing it safe. Working hard and hard but still, the satisfaction and wealth is far away. We have been taught about math, logic, science, personality development in our schools and colleges but the topic of financial education is not yet invented in the system. Rich Dad Poor Dad was a turning point. Becoming rich is not about earning a high income. It is more about the strong financial management. This bestselling book is the starting point for anyone looking to gain control of their financial future. The most important lessons from the book include:

  • The Rich don’t work for money
  • Why teach financial literacy?
  • Mind your own business
  • The Rich invent money
  • Work to Learn- Don’t work for money

In the very first lesson of Rich Dad Poor Dad, we come to know how people in real lives see the world. How rich people analyze the situation and at the same time poor complaints about being poor. The two fathers of the author will help understand the difference in a much clear way.

Poor Dad: The love of money is the root of all evil.

Rich Dad: The lack of money is the root of all evil.

Poor Dad: I can’t afford it.

Rich Dad: How I can afford it?

Poor Dad: Study hard to get a good company to work for

Rich Dad: Study hard so you find a good company to buy.

Poor Dad: When it comes to money, play it safe.

Rich Dad: Learn to manage risks. Catch up with the author’s real questions about life. Choose what is important and what is not. Rich people don’t work to get money but work to money work for them.

Why Teach financial literacy?

one of the reasons rich get richer, the poor poorer, and middle-class struggles in debt are that the subject of money is taught at home, not in school. The chapter of financial literacy is very important because “It’s not how much money you make. It’s how much money you keep.” Assets and liabilities are the two pillars of our financial life. Rich acquire assets and poor liabilities. understand the concept of assets and liability. Assets put money in our pocket and liabilities take money out of pocket. Diagram Note: A person can be highly educated, professionally successful and financially illiterate. Choose wisely your assets.

Mind Your own Business

Focus on assets column while everyone else focuses on their income statement. Keep your daytime job, but start buying real assets, not liabilities. This statement captures all my attention and focuses on building assets in my free time so that it earns for the rest of my life. In another way, start investing in businesses that do not require your presence. If you have to work there, it’s not a business. It becomes your job.

The Rich invent money

” Often in the real world it is not the smart who get ahead, but the bold.” The biggest and powerful asset we have is our mind, train it to create enormous wealth. So why develop financial genius? You can now answer that? Train your mind to work with people moving boldly forward, not with those left behind. Develop these three skills recommended by the rich to invent money:

  • Find an opportunity that everyone else missed
  • Raise money
  • Organize smart people

Work to learn: Don’t work for money

The author says, “Job security meant everything to my educated dad. Learning meant everything to my rich dad.”What the above title demonstrates is that most people focus on one skill that would pay them, but they need to master more skills and their income would jump exponentially. This lesson helped a lot in shaping my career, taught me to expand and explore new skills, to earn and perform better.

To end with financial literacy there is one more management skill we need to master. ” Managing your fear”. Why we don’t win financially, is because the pain of losing money is far greater than the joy of being rich. Believe the power of ” Give, and you shall receive”. Give your precious time in developing your surroundings, skills, and things that are assets. Spend wisely for your betterment. So, learn what you lack now. Save what you need then.

The answer to my question “What made me read Rich Dad Poor Dad” is that read it for financial education to manage your life and fulfill your dreams.

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