Rich Dad, Poor Dad: Guide of not settling for less than forever

November 29, 2019December 30, 2023 Tietler

Rich Dad, Poor Dad

The author of the book Rich Dad, Poor Dad, Robert Kiyosaki narrates this lessons he learned over time from two fathers; one rich, one poor, to help you develop the mindset and financial knowledge. He drafted the steep difference between the two father’s ideology of money. The main philosophy behind this book is to assert don’t settle for small, don’t settle for I don’t know. & don’t settle for less than eternally.

The book really sets the stage for the mentality a person should have if they want to get rich. A classic book when it comes to learning Personal Finance Management. The tagline is enough to give you an insight on what this book has in it for us. “What the Rich Dad Teach Their Kids About Money That the Poor and Middle Class Do Not.

The book is a story of developing an understanding of cash-flows, assets building and learning from failures. A thought-provoking book that insists us asking many questions.

Robert has compared every aspect of money from both a rich man and poor man’s perspective and explained each point diligently with anecdotes. He also emphasized the importance of time as an asset and learning to understand money as a concept, and how to become financially intelligent through certain skills and habits.

Read this book because it is a life-changing book.

This book is perfect for you if:

You don’t want to continue running the rat-race.
You have confusion with assets and liabilities.
Your expenses are more than income.
You are afraid to take risks?
You don’t want to work all your life.
You don’t like being an employee.
You want to be free to travel the world.
You want to simply be free
You want to control over your time and your life.
You want money to work for you.

Key Lessons: Rich Dad, Poor Dad

The Rich Don’t Work for Money
Why Teach Financial Literacy?
Mind Your Own Business
The Power of Corporations
The Rich Invent Money
Work to Learn—Don’t Work for Money

Differences: Rich Dad, Poor Dad

The poor and the middle-class work for money. The rich have money work for them.
Rich people acquire assets. The poor and middle class acquire liabilities that they think are assets.
The rich buy assets. The poor only have expenses. The middle class buy liabilities they think are assets.
The Poor and the middle-class work for money. The rich have money work for them.
The rich focus on their asset columns while everyone else focuses on their income statements.
Rich people buy luxuries last, while the poor and middle class tend to buy luxuries first.
Poor is focusing on building a better product or business and know nothing about business systems.
The primary difference between a rich person and a poor person is how they manage fear.
Rich believed that the words ‘I can’t afford it’ shut down your brain. ‘How can I afford it?’ opens up possibilities, excitement, and dreams.
Failure inspires winners(Rich). Failure defeat losers(poor).
The primary difference between a rich person and a poor person is how they manage fear.
One believes the love of money is the root of all evil other the lack of money is the root of all evil.

5 Books on self-development

Steps to grow your God-given Power:

The Power of Spirit: Find a reason greater than reality
The power of choice: Make daily choices
The power of association: Choose friends carefully
The power of learning quickly: Master a formula and then learn a new one
The power of self-discipline: Pay yourself first
The power of good advice: Pay your brokers well
The power of getting something for nothing: Be an Indian giver
The power of focus: Use assets to buy luxurious
The power of myth: Choose heroes
The power of giving: Teach and you shall receive

The Big Ideas: Rich Dad, Poor Dad

It’s not how much money you make that matters. It’s how much money you keep.

People’s lives are forever controlled by two emotions: Fear and Greed.

The single most powerful asset we all have is our MIND.

Failure inspires winners. Failure defeats losers.

There is gold everywhere. Most people are not trained to see it.

It is not the smart who get ahead, but the BOLD.

We shouldn’t bury our failure but should get inspired by them.

Great opportunities are not seen with your eyes. They are seen with your mind.

Life is the best teacher of all.

Passion is anger and love combined

True learning takes energy, passion and a burning desire.

If you learn life lessons, you will do well. If not, life will just continue to push you around.

He who has the GOLD makes the rule.

For most people, the reason they don’t win financially is because the pain of losing money is far greater than the joy of being rich.

The world is always handing you opportunities of a lifetime, every day of your life, but all too often we fail to see them.

It is not gambling if you know what you’re doing. It is gambling if you’re just throwing money into a deal and praying.

Everyone want to win ,but the fear of losing is greater than the exciting of winnings.

Most people want everyone else in the world to change but themselves. But it is easier to change yourself than everyone else.

Every person has a weak and a needy part of their soul that can be bought, and every individual also had a part of their soul that was resilient and could never be bought. It is only a question of which one was stronger.

Human life is a struggle between ignorance and illumination.

To spend your life living in fear, never exploring your dreams, is cruel.

An intelligent person hires people who are more intelligent than he is.

Learn to use your emotions to think, not think with your emotions. Money has a way of making every decision emotional.

People who avoid failure also avoid success

To become financially secure, a person needs to mind their own business.

More learning from Rich Dad, Poor Dad

MIND your own Business.

Business doesn’t require my presence. If I have to work there, it is not a business but a JOB. It does not require our presence we only own them, but they are managed or run by other people.

People forget to mind their own business. They spend infinite time minding someone else’s business and making that person rich. To become financially secure, a person needs to mind their own business. When it says mind your own business, he means building and keeping your asset column strong.

Asset puts money in your pocket. A liability takes money out of your pocket. Keep expenses low, reduce liabilities, and diligently build a base of solid assets.

Money: Money works 24 hours a day and can work for generations. If you work for money, you give the power to your employer. If money works for you, you keep the power and control it.

Wealth is a person’s ability to survive so many number of days forward—or, if I stopped working today, how long could I survive?

Emotion stands for Energy in motion. Be truthful about your emotions and use your mind and emotions in your favour, not against yourself. It is advised to be an observer, not a reactor to your emotions. Most people don’t know that it is their emotions that are doing the thinking.

Financial Aptitude is what you do with money once you make it, how you keep people from taking it from you, how to keep it longer, and how you make money work hard for you.

Financial Intelligence is a synergy of accounting, investing, marketing and law.