One of the best personal finance books of all time, Rich Dad Poor Dad by Robert Kiyosaki, focuses on teaching people how to manage their money. It also shows them how to make it work for them instead of against them.
The book was written in the form of a series of parables, based on the author’s experiences growing up with two different fathers. One was his biological father (the “Poor Dad”) and the other was his childhood best friend’s father (the “Rich Dad“).
1. Don’t Worry About Wages
When it comes to money, the most important lesson is not to worry about wages. This is something that Robert Kiyosaki learned from his two fathers, one rich and one poor.
It is a very common mistake for people to believe that if they get a higher wage, they will be able to make more money. However, this is not the case.
Instead of worrying about your wages, focus on other factors such as savings and investing. These can help you make more money in the long run, if you do them right.
This is a lesson that is very important for any individual to remember. If they do not, they will end up in a bad financial situation down the road. Luckily, there are many resources available to help you learn how to save and invest money. For example, Rich Dad Poor Dad is a fantastic book that will show you the different ways to build wealth.
2. Make Money Work For You
There is a simple saying that “rich people make money work for them”. Robert Kiyosaki, author of Rich Dad Poor Dad, explains this concept in the book.
In order to make money work for you, it is important to learn how to budget and understand where your money goes. Knowing where your money is going can help you avoid spending too much and keep you on track.
You should also pay off your debts as quickly as possible so that you can focus on investing and making more money. This will save you a lot of money in interest over time.
Kiyosaki also points out that many people who are stuck in the rat race don’t have financial literacy. This lack of education is what keeps them from becoming financially independent.
3. Your House Isn’t an Asset
There are some people who believe that your house isn’t an asset when it comes to money. They say that it takes money out of your pocket month after month with mortgage payments, taxes, insurance and other expenses.
However, if you buy an investment property, you can turn your home into an asset and make money off of it. The key is to make sure that the income generated from your property exceeds the costs of maintaining it.
In his book Rich Dad Poor Dad, Robert Kiyosaki defines an asset as something that puts money in your pocket. This is a much simpler definition than many so-called experts on money and accountants.
4. Don’t Be Afraid to Make Mistakes
When it comes to money, it’s important to not be afraid to make mistakes. This is because mistakes can be a great way to learn and grow.
In Rich Dad Poor Dad, Robert Kiyosaki shares a story about how his two fathers (one rich and one poor) shaped his views on money. Both men had different mindsets, but they both taught him important lessons about the power of entrepreneurship and investing.
One of the biggest mistakes that people make when it comes to their finances is worrying about other people’s reactions. Whether they are friends, family members, or complete strangers, it’s easy to let other people’s opinions get in the way of your progress.
