Rich Dad Poor Dad Book Summary
Robert Kiyosaki is an author, educator, and successful entrepreneur. His New York Times bestsellers Rich Dad Poor Dad and Conspiracy of the Rich have helped countless people achieve financial freedom.
In this book summary, we’ll take a look at some of the best lessons that Kiyosaki shares in Rich Dad Poor Dad. You’ll learn how to become financially literate and find your own path to financial independence.
Principle 1: Work for yourself
Putting your needs first is one of the most important things you can do to improve your mental and emotional health. And it’s surprisingly common to have a hard time doing this for a variety of reasons.
For starters, people often hold onto cultural beliefs or family ideals around showing up for others. And if you’ve spent years bending over backwards for everyone else, it may be difficult to prioritize yourself and give your back a break.
Principle 2: Invest your money
Investing your money is a great way to grow it and earn a return. It can help you reach your financial goals, such as buying a home or paying for your kids’ college education.
But before you start investing, make sure you understand the basics. This will help you avoid common investment mistakes. Check out our video series for the 27 principles every investor should know.
Principle 3: Pay yourself first
When you pay yourself first, you’re prioritizing your financial well-being by setting aside money for your future goals before spending it on anything else.
It’s a powerful financial strategy that will help you build up your savings over time. You can also use this budgeting technique to build up your emergency fund, which will give you peace of mind if something unexpected happens.
Principle 4: Create a business
One of the most important things you can do for your financial future is to create a business. This is a no-brainer because it will give you the flexibility to make your own money, and it will also allow you to focus your time and energy on your hobbies and passions. Getting your priorities straight is the key to success in business and life.
Principle 5: Live below your means
If you want to save more money for emergencies, pay down debt quicker, and get out of debt altogether, it’s crucial that you learn to live below your means.
This means cutting out things that you don’t need, like a monthly subscription to Netflix. It also means putting your needs first, rather than spending on splurges or impulse purchases.
Principle 6: Don’t buy a house
In the book Rich Dad Poor Dad, Robert Kiyosaki explains that houses don’t make a great investment. He also highlights the importance of putting your needs first.
This is especially true if you’re used to neglecting yourself in favor of caring for others. This can take a toll on your health and well-being. It can also have an effect on your relationships with others.
Principle 7: Don’t buy a car
Buying a car is expensive, and it’s a big drain on your budget. It’s also a pollutant, which contributes to climate change and hurts the ozone layer.
Not getting a car is the real sign of financial success, and it’s one of the most important things you can do for your financial health. It’s not only better for the environment, but it can help you save money in the long run!
Principle 8: Don’t borrow money
Oftentimes people borrow money because they don’t have enough savings. This can be a costly mistake that will lead to high interest rates and financial problems in the future.
Kiyosaki taught his boys the importance of not borrowing money, even when they were young and needed a new car or house. This principle is also referred to as paying yourself first.
Principle 9: Don’t buy a home
One of the most controversial lessons from Rich Dad Poor Dad is that buying a home shouldn’t be your first priority. This is because homes typically don’t appreciate in value, and the cost of owning a home can be very high.
This is particularly true if you’re used to putting your needs last. But if you put yourself first, it can help you find more happiness and success in your life.
Principle 10: Don’t buy a car
One of the most important lessons Rich Dad Poor Dad teaches is that you shouldn’t buy a car. It’s one of the most expensive things you can buy, and it costs a lot to run.
The reason why this is so important is because it will help you save money and prioritize your needs. When you put your needs first, it will make you feel more content and happier in general.