Discovering a way out of your financial struggles is the beginning of your financial freedom.
You work very hard, sometimes over ten hours a day yet, you can not save money nor get rich. This can make you feel the universe is playing tricks on you but hey! don’t be depressed: an eye-opener is what you need.
Have you read the book titled “Rich Dad Poor Dad” written by Robert Kiyosaki? It’s such an Influential publication that has helped many people grow wealth.
The “Rich Dad Poor Dad” identifies smart ways you can escape working for unlimited hours yet struggling to make ends meet. You can’t read this book and your financial stories remain the same. It must definitely improve.
In this article, we have summarized the book into 8 great lessons for your quick and better understanding. As you read through, you’ll draw great lessons that will change your life for the better.
Best Rich Dad Poor Dad Lessons for Your Business
Consider your problems half-solved as we dive into eight fundamental financial lessons from the book that can help you build wealth and retire in comfort.
#1. Make your money work for you
Many people consider this lesson to be a myth, but it’s absolutely true. Actually, the difference between rich people and the lower/middle classes is that the former have money to work for them whereas the latter work for their money.
The wealthy don’t stay in the job phase for very long. They realize early that to gain wealth; they need to become the people who hire others into jobs, and not a job holder.
To overcome financial struggle, be very strategic about that journey from employee, to being able to retire because your passive income is greater than your expenses.
Check out 8 ways to make your money work for you.
#2. Manage your money
One behavior that most separates the rich from others is the emphasis on saving money.
Many people can make money, but not everyone learns how to manage it properly. Financial intelligence starts with learning the difference between assets and liabilities.
By enhancing your savings and tracking your expenses, you can understand your spending patterns and ensure that you have more money coming in than going out, which is what will make you richer.
#3. Become financially intelligent and literate
“Financial struggle is often directly the result of people working all their lives for someone else”.
The biggest cause of financial struggle is ignorance because this isn’t taught in many education systems or societies.
Financial terms can be complex and daunting, but you can develop financial intelligence by reading about accounting and investing and keeping informed about the markets. Courage plus technical knowledge will take you far.
#4. Pay yourself first
One of the major differences between Rich Dad and Poor Dad was that Poor Dad would get his monthly salary, pay off the bills, and use the rest. By contrast, rich Dad would pay himself first, even if that means his bills exceeded the remaining amount.
The idea behind this, according to Rich Dad, is that when you do not have enough money to cover an essential thing like paying bills, this pressure drives your creative genius to inspire ways that will ensure you cover the bill money that month.
However, if you pay the essentials first with ease, your genius will not be inspired as you will simply pay yourself whatever you have left rather than being forced to come up with more.
Kiyosaki said that was a great idea, but the point behind giving yourself that pressure is a sound one to inspire in you some commercial creativity that might just lead to a new business idea or some other income-generating proposition.
This is why you often find that entrepreneurs come from financially unstable backgrounds – the pressure inspired them.
#5. Work to learn
This is an especially useful chapter in which Kiyosaki outlines that the value of being an employee isn’t in the money, it’s in leveraging the resources of a particular company in order to better yourself. He advocates learning a little about a lot.
For instance, he took a job with Xerox simply because he knew he was a shy person and Xerox was renowned for having the best sales training program out there.
He ended up becoming one of the top salespeople in the company and, having gained what he wanted out of the job, left shortly after.
Kiyosaki also took jobs as a construction worker, a busboy, reservations, marketing, and sat in on meetings (with Rich Dad) with lawyers, bankers, accountants, etc.
This was all part of learning a little about a lot so that he could run his companies in the most effective way.
#6. Train your mind to look for opportunities
Look for creative solutions to any money problems. Maximize your options and work out what you can do to improve your financial position if opportunities aren’t falling from the sky.
It is not so much a question of what happens to you, but the different financial solutions you can think of to turn things into opportunities.
#7. Focus on assets over income
Concentrate on your net worth rather than your monthly salary. Start acquiring assets such as stocks, bonds, or your own company to earn you money, as opposed to liabilities such as mortgages, loans, or credit cards which cost you money.
Build your asset column first, then buy any luxuries with the income generated from these. According to Kiyosaki, you can measure your wealth by the number of days you can live off the income from your assets.
And you can consider yourself financially independent if your monthly income from your assets exceeds your monthly expenses.
#8. Be brave and don’t be scared to fail
Most people never win because they’re afraid of losing or failing. However, we often learn and improve by making mistakes, and failure is often part of becoming successful.
You don’t have to be ridiculously intelligent to have financial success. While Kiyosaki’s father had multiple qualifications, his best friend didn’t have a proper education.
Generating wealth sometimes involves taking risks and dealing with a level of uncertainty. The trick is to be clever about when and how to take risks, by being savvy and learning from your experiences to assess a situation, rather than dive in blindly.
The path to wealth often requires you to leverage money to mitigate your risk and maximize your profit.
The lessons you can extract from the “Rich Dad, Poor Dad” book are timeless. Don’t just read but follow the principles and unlock your financial freedom.