Rich Dad Poor Dad is an iconic finance and self-development book, often recommended by the lead experts in this field since it contains some powerful lessons that can constitute a solid foundation for anybody that wants to increase their income and have a better life.
Understanding the principles laid down within this book is essential and because of that, we prepared a list with the most some lessons displayed within the book, in the attempt to make you get the most out of this piece of reading.
The Rich Don’t Work For Money
The rich usually work quite hard but, because they are in a position of abundance, the reasons behind their work are more than just to acquire money. The rich don’t work for money, they work to acquire knowledge and to learn things that can be easily applied over and over again to earn more money.
Money comes and goes, but if you have the education about how money works, you gain power over it and can begin building wealth.
Robert Kiyosaki
Under the same lesson displayed within the book, there’s another essential part to understand that apparently, too many people get wrong nowadays. Being rich doesn’t mean that you own a lot of material things, that you live in a big mansion by the beach, and that you’re driving a Lamborghini, those things are only a show-off.
Being rich means that you don’t have to ever worry about money again, that you can take a break from work whenever you want, and still be able to maintain your lifestyle. And this is very well illustrated in the book through the “rich dad” who, against the fact, that has lots of money and successful business, is driving a cheap car and lives in a modest house.
Own More Assets
Under this section of the book, Robert Kiyosaki redefines what an asset means, trying to make people understand what things truly have value and what things don’t. Most people might consider a car an asset because it is something that they own and it has monetary value but, Kiyosaki sees things differently.
To Kiyosaki, assets are things that are generating income, while liabilities are any other things that have costs. From his point of view, your car, or your home is not an asset even if it has value in cash but a liability because it doesn’t generate you any income.
Assets put money in your pocket, whether you work or not, and liabilities take money from your pocket.
Robert Kiyosaki
If you would be renting out that car or that house in order to generate some income then, you could easily consider it an asset. Now, to become rich, you must start accumulating more assets. You can consider yourself wealthy when you have enough income generating assets to cover all of your expenses and be able to earn money even if you don’t work.
Conclusion
These lessons taken out of Kiyosaki’s book, “Rich Dad, Poor Dad” are some fundamentals that anybody should understand, and try to incorporate in their life on a constant basis. We strongly advise you to pick up his book and give it a read for yourself since you will surely not regret it.
