“Rich Dad Poor Dad” Key Lessons | Quick Reads For Busy Minds epi 4
Welcome to “Quick Reads for Busy Minds,” a blog series tailored for the vast and bustling community of individuals with limited time but an insatiable thirst for knowledge. In each article delight, we’ll unravel the essence of a thought-provoking book, distilling its key takeaways into a concise 10-minute read. Whether you’re a professional navigating a hectic schedule or someone seeking intellectual nourishment on the go, this series aims to provide you with insightful summaries that capture the heart of each book, empowering you to absorb wisdom in a fraction of the time. Episode 4 of the series presents “Rich Dad Poor Dad” Key Lessons that tries to give answers on why do the rich get richer, and the poor get poorer? Why do the educated middle class have a successful career, yet struggle with their financial commitments? In this book, Robert Kiyosaki shares the secrets that separate the Rich from the Poor and Middle Class, and how we can apply this to grow our wealth.
Grab a moment in your day, and let’s get started on this literary expedition together
Today’s Book: Rich Dad Poor Dad by Robert Kiyosaki
“Rich Dad Poor Dad” Book Summary | Key lessons & insights
Overview of “Rich Dad Poor Dad”
Kiyosaki was fortunate to grow up with 2 fathers – one rich and one poor. By comparing and reflecting upon the different advice given by each dad, Kiyosaki was able to learn from both of them. His biological father, poor dad, was a school teacher with good degrees and a Ph.D. Yet, despite earning a good salary, he struggled with debt and finances his whole life. While, his best friend Mike’s father was a business owner who never finished eighth grade, but eventually became one of the richest men in Hawaii. At the age of 9, Kiyosaki and Mike asked Rich Dad to teach them how to get rich. Rich Dad began their financial education through real-life lessons, for 30 years until Kiyosaki was 39 years old. In this book, Robert Kiyosaki shares his learning journey and the 6 fundamental lessons that he learned over these 30 years
“Rich Dad Poor Dad” Key Lessons
The Rich Don’t Work for Money
You must have heard the phrase “live to work or work to live”.This is one of the basic concepts addressed in the book. The wealthy prioritize acquiring assets that generate income over relying solely on earned income from a job. They understand the importance of building passive income streams through investments like real estate, stocks, or businesses.
Financial Education is Crucial
Kiyosaki emphasizes the importance of financial literacy and education in understanding how money works. The rich continually seek to expand their financial knowledge . Also, the money isn’t your greatest asset. ‘The single most powerful asset we all have is our mind.If it is trained well, it can create enormous wealth” says Kiyosaki.
Know the difference between assets and liabilities
An asset is something that puts money in your pocket and a liability is something that takes money out of your pocket.Rich people acquire assets (shares and property investments) and poor people add liabilities (commitments and obligations). Kiyosaki says don’t buy liabilities on your way to financial freedom. People buy liabilities and think these are assets, but they are not.Many people buy luxuries first, like big cars, heavy bikes, or big houses to live in. But the rich buy assets first and the income from their assets buy luxuries.
Understand the tax code and legal system
Kiyosaki says that the rich understand and use the tax code to their advantage.He explains that you pay high taxes when you earn a salary or take loans. But if you run a Corporation, you can write off business expenses and pay less taxes. You can even reinvest the profit generated by a company in the business for expansion and growth. One can also pay out the profits to the owners as dividends, which face lower taxes than those incurred on salaries.You can keep more of your earnings and minimize your tax liability by running a business.
Work to learn, not for money
If you work to earn a paycheck, you will never get out of the rat race and acquire real wealth. However, if you work to develop new skills, you will become more talented and open new earning opportunities for yourself in the long run. Learn something about accounting, investing, markets, the law, sales, marketing, leadership, writing, speaking, and negotiating.
Take financial risks
A secure job provides a false sense of security that could lead to complacency. External factors can always change that, and you may lose your job, no matter how secure you think it is.However, investing in stocks, bonds, real estate, and other assets that create multiple income streams will make you financially secure. If one income stream is affected, you’ll still have many more. But does that mean you must take unnecessary risks? Absolutely not! He emphasizes the importance of taking calculated risks to achieve financial success. You must carefully weigh your options but don’t hesitate to bet on a good opportunity because of limiting beliefs and risk aversion. Investment is not risky, not knowing the investment is risky
Final Takeaway
There are some must-read books on personal finances that will help you develop good saving and investing habits. And one of them is Robert Kiyosaki’s Rich Dad Poor Dad where Kiyosaki shares many interesting snippets of his learning experience with Rich Dad, as well as his personal stories and experience.Having delved into the “Rich Dad Poor Dad” Key Lessons , now you are equipped with valuable knowledge to transform your financial mindset and approach.
Get the book here, https://amzn.eu/d/hha74ta
Read also : “Steal Like An Artist” Book Summary | Quick Reads For Busy Minds epi 3 https://thebrightdelights.com/steal-like-an-artist-book-summary-quick-reads-for-busy-minds-epi-3/