The first big difference between Rich and Poor parents is how they spend money. The poor dad is frugal, while the rich father creates money and then spends it on things he needs. Both parents are savvy negotiators, but their financial IQs are different. You can learn more about the differences between these two parents in this article. Then you can make your own judgment.
Rich Dad is frugal
The Rich Dad has a unique perspective on money and he encourages his children to follow in his footsteps. One of the most important lessons he teaches is to not be controlled by fear. Fear is what drives most of us to work 8 hours a day at a job we hate, or to force our kids to finish a degree that will ensure a secure career. But we can learn not to let fear run our lives. Even the rich have a higher fear of losing their money than they did when they were struggling to make ends meet.
The rich don’t spend all of their money on entertainment. They spend their money wisely and save the rest for emergencies. They’re not always frugal, but they’re smarter than the poor. They’re also happier and healthier. They spend a fraction of their income on hobbies. The rich, in contrast, spend their money on assets. And they don’t have to earn a lot to enjoy a good life.
Poor Dad has phobias
The book “Rich Dad, Poor Dad” is based on the true story of Robert T. Kiyosaki. He suffered from phobias as a child and had them as an adult. These phobias can happen to anyone. Fortunately, the book can help you overcome them. It is an amazing read for all ages. And even though it is about a poor father, the story can inspire others.
Robert Kiyosaki, the author of Poor Dad, Rich Mom, and the Power of Negotiation, grew up in a household that was run by two fathers. His biological father, a government employee, had limiting beliefs about money. He believed that money was only good if it was earned by hard work. Robert also learned about taxes as a child. While negotiating with his rich dad, he was forced to wait 60 minutes for a meeting.
Despite being different, Kiyosaki’s father was an example of a wealthy and a poor father. His “rich dad” taught him that self-education was the key to success in life. As a result, he learned to make prudent decisions with money. As a result, his own father was financially successful and had a good job. Rich Dad had a good reputation among the business community and was able to get ahead in a very short amount of time.
They have different financial IQs
The Rich and Poor Dad books are similar, yet they are also quite different in their approach to money. The two books cover four fundamental areas of financial intelligence: law, accounting, and investment strategy. The first part of the book is the concept of ‘inventing money,’ which is all about identifying opportunities that others don’t. For example, the biggest financial predator is the bank. In Rich Dad Poor Dad, we learn how to avoid becoming a victim of them.
The next step in the financial journey is leveraging money. Most individuals invest their excess money in a mutual fund or bank account. This method does not require an incredible amount of financial intelligence, as long as the mutual funds have a well-diversified portfolio. However, there are other ways to leverage money. The yardstick for financial IQ is profitability. If a person earns 50 percent interest on his money instead of five percent, he has a higher financial IQ than someone earning just five percent.
They blame the economy
In the book “Rich Dad, Poor Father,” Robert Kiyosaki outlines a new theory of money and the economy: the rich buy their assets rather than paying their debts. In other words, they pay less in taxes than the poor. Tax laws help encourage business owners to build businesses and buildings and reward the wealthy with lower taxes. However, this method penalizes the middle class and poor alike.
The main argument in Rich Dad, Poor Father is that our country is in a bubble. Robert Kiyosaki, the author of the book, has warned of several potential crises in the United States, including a stock market crash and a depression. He urges readers to invest in precious metals and other assets that will rise in value in the future. According to his theory, a major crash will create a buying opportunity that will allow everyone to profit from.