‘Rich dad poor dad‘ a mind blowing book which many of you might have read. This book was written by the bestselling book author Robert Kiyosaki. This book broadly focuses on financial literacy.
In this book, Author talks about the teachings of his poor dad (real dad) and his rich dad (friend’s dad). He talks about all valuable teachings that rich dad had imbibed in him about how rich people get rich and poor stays poor
This book provides us with many valuable lessons. Top 8 lessons from rich dad poor dad are as follow-
Pick a right role model in your life-
Author had a choice to choose a mentor either poor dad or rich dad. He chose the rich dad who was the right mentor for him. The reason for Success of the author was definitely choosing the right mentor. How important it is for anyone to pick a role model or mentor perfectly. Right mentor will bring the right goals and work from you. He is the one who motivates you and will guide you in the right direction. You must choose a mentor who has already achieved success and is the best in that field.
Don’t be slave of money-
Don’t be the one who works for money. This is the biggest and best lesson of the book. Most people are in a loop. A loop of getting salary then spending it on parties, hotels, etc and then again waiting for the salary. This shows how you are dependent on the salary. They just hate their job, but they do it because they get regular income from it. This is what rich dad says to author that don’t be a fool to work for money. Instead make your money work. This means that what money comes to you, make that money work to make more money. For e.g. if you have some money invest it in mutual funds, stock market, bonds, etc to grow it. Your money will just grow it into more money.
Mindset is everything-
An important lesson to learn from this book is that mindset is everything. Poor dad always used to say” we can’t afford this “whereas rich dad teaches him to replace it with “how you can afford it?”. In This way, replace your negative attitude into positive and you will definitely find ways to do achieve that target. Your attitude and mindset matters the most. The first and foremost thing to do anything is that you must believe in yourself. Just say to your mind that you can do it.
First step to earn is to learn-
People are so focused on earning money that they are just forgetting to learn things and skills. Remember that you always get paid for the value you bring. Value can only be brought when you have the right skills and knowledge. If you skip learning you won’t earn much. Learning is the basic step to master anything. Right skills will lay a foundation for your earnings. Always be a learner first and after that think about earning. It also emphasizes financial literacy. We must acquire little knowledge of everything. Rich dad says to have a little knowledge of everything like accounting, law, economic, etc.
Related- How to master any skill?
Focus on building assets not liabilities-
Rich dad explains the author about assets and liabilities. Assets are the things which generate you money whereas liabilities are things which take away your money. Many people buy liabilities that’s why they face financial problems. They buy cars, bikes, etc. Cars and bike will incur you cost of petrol and diesel, maintenance cost, etc. Instead we must focus on building assets which will help you to generate more money. We must acquire assets like stocks, shares, funds, bonds, etc which helps you to build more money. More assets will give you more money.
Build multiple sources of income-
Most of the people are only dependent on one source of income. If you depend on one source and that source suddenly disappears, you will face the crises. We must build multiple sources of income. We must invest money in different things and must take risks and make your income grow by multiple sources.
Your mind is your greatest asset-
You become what you teach to your mind. Your mind is the greatest asset to invest in. We humans have different emotions. We should teach our mind to control these emotions. Author talks about 5 things to get rid of fear, bad habits, laziness, cynicism and arrogance. They are not good for your mind. Train your mind to take risks. Invest in your mind to grow it. Train your mind to adapt any situation.
Don’t follow the crowd-
We have a tendency to follow what everyone is doing. Rich dad says that you must quit the rat race. Just don’t follow what others are following. Stand apart from them. Find out your own way. Find out what others are missing. And grab that opportunity.
Lessons from Rich dad poor dad are precious and timeless.
You might have understood all the key lessons from this book. But if you don’t apply it practically in your life it is of no use. I know it is hard, but trying our best is important.