If you have children, you know that one or both parents have a high-income level, and both parents have strong financial backgrounds. Both parents are equally capable of raising a child, but the difference between a rich and poor dad is the mentality. The poor dad may be more hands-on, but the rich dad is more likely to specialize. This mentality may be advantageous if you’re aiming to become rich.
Rich dad prefers to specialize
The author of Rich Dad Poor Dad, Robert Kiyosaki, has a large following and is the most widely read entrepreneur. He has numerous LLCs, Corporations, and his own Rich Dad Company. He has a large following on social media, over 1.58 million YouTube subscribers, and 17 joint ventures. However, despite his success, he is not a financial expert. However, he is a highly successful investor and mentor, and his advice is worth considering.
Taxes
One of the most important lessons in the book Rich Dad, Poor Father illustrates is the importance of financial literacy. It’s not enough to be an educated citizen. You have to be willing to put in the work to get ahead. This book is all about mindset and overcoming obstacles. Although it focuses on comparing the lifestyles of rich and poor dads, it is still a useful read for people who want to make a lot of money.
The rich dad’s story is one of many similar ones. He discussed how the value of his home didn’t go up, and Kim’s parents’ budget was strained when their property taxes increased. They later sold the house for much less than what they bought it for. Rich dad also pointed out that tax bills are not always equal. A million dollar house may go for less than half that amount in value. In addition to their knowledge of the legal corporate structure, the rich dad’s parents also built a corporation, which is basically a legal document with no soul.
In Rich Dad, Poor Father, Robert Kiyosaki illustrates the mindsets of rich and poor people. He compares the mindsets of the two fathers and shows how each one affects the other’s finances. While his father was well educated, his best friend didn’t graduate from high school. The only meaningful difference between them was in their mindsets. As a result, Kiyosaki’s book should be a must read for anyone interested in wealth building.
Mentality of rich dad vs poor dad
In Rich Dad, Poor Dad, Robert Kiyosaki draws parallels between the mindset of a rich dad and that of his poor counterpart. Although both men were educated, Robert Kiyosaki’s father was very traditional and never reached financial independence. In addition, Robert and his family were not wealthy, and they were forced to rely on the goodwill of his father, who offered conflicting advice to his son. The result? Kiyosaki followed the advice of the rich dad, and ended up being a millionaire.
Rich dad believes that poverty is caused by self-inflicted fear, while his poor father argues that circumstances are primarily created by outside forces. In both cases, a child needs to understand the difference between risk and reward. Similarly, a rich dad is a risk taker, while a poor dad is a risk avoider. Nonetheless, it’s important to understand how each of these two mindsets affects a person’s life.
The rich dad creates money first, and buys things with the excess. The poor dad merely spends money on necessities like food. Unlike the rich dad, he also believes in being frugal. A rich dad is a person who creates opportunities and spends money wisely to maintain wealth. It’s worth noting that the average dad’s house is overcrowded, and most of the time, he sleeps on the street, subway, doorways, and park benches.
