In Saving Tips, Managing & Making Money, we love to showcase books which could help anyone improve their finance security and ultimately, their financial freedom, and this is the book that started this whole deal and is the best-selling personal finance book in history.
Rich Dad Poor Dad explains why Robert Kiyosaki became a wealthy man. In it, he reveals some of his childhood memories around his two fathers, one of them being the father of his best friend, a really rich man. In this book, the mindset of a rich person is compared to the one of a middle class person.
This is shocking for the reader, as the book completely deconstructs and rethinks the idea of how money works in real life, with ideas like seeing an asset as “something that generates cash flow” instead of the linear old school thinking that an asset is something valuable.
In the book, Robert explained how he learned many things about money with his rich dad’s guidance while understanding how his poor dad made huge mistakes in the same regard. During these chapters, Robert revealed several important lessons.
Don’t Work for Money
Rich people aren’t working for money, and this is a tough to accept. Rich people work to learn more and more things that can easily be turned into businesses. Rich people are the ones that can come up with better ideas to make more money, and that only comes with education, not hard labor.
Get You a Business
This is simple one, but is true gold. It revolves around the idea that every rich person spends more of their free time figuring out how to come up with more assets, instead of just spending their free time spending their money. Investing is the wisest choice here.
Rich People Make Up Money
This is a weird principle but it is completely true, and although the example presented is dated and pretty much unviable by today standards, the meaning is still there. Rich people invent their own money when they know how to create value out of anything, and you can too.
Work to Learn
This resonates with the first lesson, which is to not work for money. This is simple, if you’re not learning in your job, you should quit, because it became labor already. If you keep learning every day, someday you’ll have your own business with that knowledge put in practice.
The Honest Truth – Is it Worth Your Time?
Rich Dad Poor Dad is a great book to start changing your mindset when it comes to assets and liabilities. It teaches you that you have more power than you thought. We think is a mandatory read for everyone interested in anything related to improving our personal finances.