The biggest question that arises while discussing the differences between the rich and the poor is, “What is the difference between a Rich and a Poor Dad?” In short, the rich is more frugal, while the poor is more conservative. While both parents are financially literate, they are different in their approaches to negotiating. The best way to differentiate the two is to understand their financial IQs.
Rich Dad is frugal
The book Rich Dad, Poor Father, by Robert Kiyosaki, is based on his own experiences and focuses on how to become financially independent. Kiyosaki’s father held several degrees, but never finished high school. This contrast between his father and his friend’s father, who never finished high school, led to the creation of a financial empire in the son’s name. Kiyosaki points to the importance of establishing your own mindset and overcoming obstacles.
The author, Robert Kiyosaki, is passionate about small business stocks, real estate, and small company stocks. While he is a serial entrepreneur at heart, he remains frugal. In a traditional school, students learn how to get a job, but they are not taught how to build wealth and invest it. This mindset, cultivated in Kiyosaki’s book, has become the basis for his own success.
The title Rich Dad, Poor Father refers to two men in Robert’s life. The figurative Rich Dad was a Hawaiian fisherman, while his friend’s dad was a millionaire. The two men were very different, but they had similar beliefs. Robert’s father believed in financial education and understanding how money worked. He made millions of dollars from being an eighth-grade dropout. Robert Kiyosaki’s book, Rich Dad, Poor Dad, focuses on six lessons that he learned from his rich and frugal father.
They have different financial IQs
In Rich Dad, Poor Father, the book focuses on four core principles of Financial IQ. Investing strategy, law, and accounting are key components. The fourth principle is called “inventing money.” It refers to finding opportunities that others do not have, such as buying investment packages. Similarly, most people invest in real estate crowdfunding ventures or ETFs. In addition to defining their own Financial IQ, this principle provides a framework for measuring success.
One of the first things to note is that the poor and rich have different mindsets. Robert Kiyosaki explains this in chapter three of Rich Dad, Poor Dad. “In business, you have to make money,” Kiyosaki argues. But this concept is only half true. Most people confuse a profession with a business. In reality, the differences between a rich and poor financial IQ are even more pronounced than they appear on the surface.
The wealth mindset of a poor and rich father is often based on the father’s background. The “poor dad” mindset is based on the idea that wealth is a product of family wealth, while the “rich dad” mindset teaches that money can be learned. This means learning to think like a rich person, attending seminars, and meeting people who have built massive wealth. And this can all be done by increasing your financial IQ.
They negotiate with each other
There are two types of negotiations, and they have different definitions. Negotiation is an action involving discussion, negotiation is a practical engagement, and Diao Jie Qi is a technical use. This form of negotiation is more complicated than simple dialogue. It involves a wide variety of factors, from the space and actors involved in production to the circumstances and exchange of goods. It is like negotiating the white waters of a river, the contours of a mountain pass, and the unruly traffic of a developing metropolis.
Negotiation is a process where two people are in conflict and have different positions. Each side has a distinct advantage, so the parties must work together to achieve a mutually beneficial outcome. Negotiation is a complex process that requires education and goodwill on both sides. It should be mutually satisfying, but it rarely occurs on a level playing field. Neither side starts with equal strength, so it is important to have a sense of how to negotiate effectively and build bridges.
