Rich Dad Poor Dad has been one of the most successful books on personal finance. In the book, Richard Kiyosaki teaches the difference between the rich and the poor through six lessons. For those that are trying to improve their financial situation and want to become financially independent, it will be worthwhile to learn about the lessons in the book.
So let’s talk about some of the concepts discussed in the book. The first lesson is how Robert Kiyosaki talks about how the rich don’t work for money. Most people work “for money” and work to simply survive by trying to make a good income. While they do save money, it is difficult for them to accumulate wealth.
In comparison, the rich make their money work for them. They invest their money on assets such as real estate, stocks, and businesses. In return, their money brings them an income and starts to build over time. While this idea is simple, many people overlook how significant it is in building wealth.
Then there’s the importance of having financial literacy. Robert Kiyosaki talks about how the rich understand every aspect of their money from how much they are bringing in, how much of their earnings is net, how the taxes will work, and more. The poor do not really have an understanding of how their money is working for them aside from their earnings and expenses.
Robert Kiyosaki also strongly advocates starting your own business. This can be anything from a real business, real estate, to investing. He talks about why it is very difficult for one to become wealthy by working for a living even if the individual makes a respected salary.
In order to become truly financially free, you have to make your money work for you as discussed before. He talks about the various options they are available and why everybody should invest in their own education if they really want to become wealthy.
Another important concept is about taxes. While nobody can avoid taxes, there are ways to prepare your taxes and set up corporations so you pay much less and start your road on building wealth. There is a discussion on the different types of corporations and which ones you should choose in order to get the biggest tax benefit.
Probably one of the best concepts is the idea that you should always continue to learn new skills. If you need to learn how to sell, read books and attend seminars. If you need to learn management, take courses on it. The author states that many people are “one skill away from great wealth.”
Overall, Rich Dad Poor Dad discusses many principles that people have not been taught since there is no course on financial literacy in our education system. Whether you’re a professional, business person, or an average person, it will be worth it your while to read this book.
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