There is a difference between the mindset of a rich and poor father. The Rich Dad is frugal and has plenty of material possessions. In contrast, the Poor Dad is greedy and works for his money. Both have a need to spend, but they are different. They each have different fears and beliefs.
Rich Dad prefers to specialize
According to Rich Dad’s book, the main mistake that people make in their financial lives is not specializing in one area, but spreading themselves thin. In the process, they end up chasing after too much of one thing and not being able to focus on one thing very well. To avoid this, they need to learn how to specialize in other areas.
Rich Dad is frugal
While many people attempt to manage their spending habits by their intuition, it is important to learn the fundamentals of personal finance and learn how to make wise money decisions. Reading personal finance books like Rich Dad, Poor Dad will teach you to use your money as a tool to achieve your goals. This book will teach you how to use your money wisely and avoid pitfalls.
First, remember that assets make money and liabilities cost money. This saying is not perfect, but it is generally true. For example, a car is not an asset, but a liability. The value of a car decreases over time, and you will need to pay for maintenance and repairs.
Rich Dad taught his boys about money through real-world experiences. For example, Robert was a young boy who was unhappy with his job and he was frustrated that he was not being paid for the time he was working. This is how most people feel. They work hard for little pay, and even when their salaries increase, they don’t make a huge difference in their lives. Robert’s frustration at his job made him want to quit. His rich dad explained that most people are stuck in jobs they hate because they’re paid too little.
Rich Dad has a lot of material possessions
Rich Dad has a lot of material possession, and his father does not. The underlying message of Rich Dad, Poor Dad is that assets make money, and liabilities cost money. Although the statement is not perfect, it generally holds true. For example, a car is not an asset, because it depreciates over time and requires repair and maintenance.
Robert Kiyosaki, the author of Rich Dad, Poor Dad, is a son of a rich father and a poor father. He spent his childhood with two fathers: one who was poor and died with bills to pay, and another who was rich. This helped him realize that having a lot of material possessions does not necessarily make you rich. Instead, being a good saver makes you richer.
The book is now available in 109 countries and 51 languages, and has been on the New York Times bestseller list for six years. Kiyosaki has collaborated with Donald Trump to write two other books, Why We Want You to Be Rich and Midas Touch.
Rich Dad negotiates with poor dad for free
The Rich Dad once asked two young boys to work for him for free. His aim was to motivate them to earn money for themselves, but they were not being paid enough. One day, they noticed some comic books lying around his shop. So, they decided to start a business selling them.
The first step in this process is to find a mentor. Kiyosaki, the author of Rich Dad, Poor Dad, notes that many people confuse profession and business. He also stresses that a business is a business and not a profession. For this reason, he recommends that people read the book as a motivational guide and do not rely on it for expert financial advice.
The book is a compilation of ten chapters, plus an introduction. We will focus on the first six chapters in this review. The author Robert Kiyosaki discusses his own experiences and describes his relationship with two fathers. His biological father was an intelligent, highly educated man who believed in hard work.