Kiyosaki’s book, Rich Dad, Poor Dad, is a great read for any person who wants to be financially savvy. It describes how Rich Dad hated the rat race and how he avoided it by paying himself first and buying income-producing assets. The book has helped Kiyosaki make millions of dollars and become a well-known personal finance author.
Rich Dad taught Kiyosaki to be financially smart
Robert Kiyosaki wrote “Rich Dad, Poor Dad” in 1997. While he admitted to fictionalizing some stories in the book, Kiyosaki did tell the story of a father who struggled with money. The book also tells of a friend’s father, who dropped out of high school but later became a successful businessman. Kiyosaki learned to be financially wise by taking lessons from his father.
Rich Dad, Poor Dad is one of the best-selling books of all time. It has been translated into 51 languages and sold in 109 countries. The book has remained on the New York Times bestseller list for six years. Kiyosaki has written 15 books on finance and he has authored over twenty-six million books. His advice on financial success is to first understand what assets are and how to purchase them. Rich people buy assets that generate income for them.
Rich Dad hated the rat race
If you’re like most people, you’ve probably heard the old saying, “Rich Dad, Poor Dad.” But have you ever thought about why your poor dad hated the “Rat Race”? Did you know that your dad was probably the one who taught you about finance and economics? Maybe he told you that you have to work for ten cents an hour to get ahead, and that this is what it means to “be rich.” But is that true?
The “Rat Race” refers to a life that is so disheartening, you often find yourself feeling like you’re spinning your wheels. You’re only one paycheck from being broke, but you have a lot of bills to pay, and you feel that you’re not making any progress in your career. You might feel as if you’ve got no choice but to work for a paycheck, but your salary is barely enough to pay the bills.
Rich Dad paid himself first
“Rich Dad paid himself first. Then he paid his bills later” – that’s how he started his business, and that’s a principle he taught his children. His motto of “pay yourself first and everything else will take care of itself” motivated him to deliver on his promises, and it forced him to find extra income to keep up with his financial obligations. Now, he is able to spend all of his time and money wisely.
Robert and Mike started working for their rich dad when they were teenagers, and watched as he attended meetings with professionals and managed a business. Robert, who had left school at thirteen, realized that his father had far greater financial literacy than his poor dad and began listening to real estate brokers, tax accountants, and bankers.
Rich Dad bought income-producing assets
One of the biggest lessons we can learn from the Rich Dad books is how to invest your money in income-producing assets. By buying income-producing assets, you can leverage your money and increase your income. Investing in real estate or renting an apartment can help you earn income while you are renting the property.
When Rich Dad Poor Dad was first published in 2003, the stock market had just undergone three major crashes. These crashes, Kiyosaki says, were actually investment opportunities. His financial growth today is mainly due to real estate and small cap stocks. As a result, his advice is still relevant and highly recommended.
The key to making money is to focus on assets and avoid liabilities. In the Rich Dad, Poor Dad book, Robert Kiyosaki suggests that the first asset people should invest in is their house. However, many people overspend on housing, which drains their money for other investments.
Rich Dad didn’t work more for money
The Rich Dad’s approach to money was very different from the poor dad’s. The poor dad worked hard to pay his bills, while the Rich Dad spent his money working for him. Robert began to wonder why his dad didn’t have more money, and decided to follow his example. He began selling Xerox machines.
Robert Kiyosaki was fortunate to have two father figures who passed along financial lessons. His father was well-educated, but worked for others all his life. His best friend’s father, on the other hand, was a rich father who chose entrepreneurship over formal education.