Do you want to know how rich make money? Then the book of Robert Kiyosaki named by Rich dad poor dad is the best read you should have. We will further discuss Rich dad poor dad key points in the following article.
If you have a question in mind that why you should read this book on financial intelligence then I shall let you know that Robert Kiyosaki has a net worth of $80 Million as per 2020. This book revolves around the teaching of a rich dad, who was his friend’s father and poor dad as his father. Both taught him life lessons, but the rich dad taught him how to make money.
At some point in your life, you have to start thinking about the money. When you think, you should know the steps that you shall be following in the journey of money-making.
6 Key points from the Rich Dad Poor Dad Book:
1- If you want to be rich then let money work for you, don’t work for money
The statement itself seems contradictory to our subconscious mind that if you are willing to become financially independent then don’t work for money. We can save ourselves from the biggest traps of life if we can understand the true meaning of “don’t work for money”.
Robert Kiyosaki tells that human lives are controlled by two emotions: fear and greed. Our fear of losing job forces us to work 8 hours a day like a robot, our greed of desires incite us to earn money so that we can bring joy in our lives that is short-lived.
When we will be out of this fear and greed, we will see this world with a different approach. Our subconscious mind will figure out ways to earn money. Robert Kiyosaki told how his rich dad taught him the lesson by made him work without pay. When he did work without pay, he was able to see money-making opportunities that people with the fear of losing a job cannot see.
2- Become Financial Literate
Robert Kiyosaki was able to accumulate that wealth up till now because of the financial education he received from his Rich Dad. His Poor dad, who was more educated than rich dad but he was financially illiterate. He was told by his rich dad that if he wants to succeed then he should better know the number game.
The concept of assets and liabilities is explained here in simple words that asset is something that puts money into your pocket, while liability is something that takes something out of your pocket. It may sound wrong to many people with the accounting background that as per Robert Kiyosaki, your house is not an asset, it is a liability. The bigger house you own the more expenses you will incur. It doesn’t mean you should not own a house, it means you should first increase your assets column to generate enough cash flow for your house expenses.
Financial intelligence is all about using your income to make assets that can produce cash flows. Unfortunately, our education system is not educating children about financial intelligence, they are making them employees instead of employers. So, if you want to be financially independent then you have to learn this game of asset and liabilities, you have already taken a step towards it now what you just require is an action.
3- Develop Your Own Business
If you ever want to retire at the age of 50 or maybe 55 and enjoy the rest of your life without getting financial issue then you must start your own business. As Robert Kiyosaki wrote in Rich Dad Poor Dad that most of the people spend all of their life to grow someone else business. If you cannot take a risk of leaving your job then it’s ok, manage your time to learn new ways of earning. Start from the small and grow it gradually.
Nowadays the internet is full of opportunities in the form of freelancing, Blogging, vlogging etc. We have this example of Freelance engineer who left his job and made his career in freelancing, now he is earning millions per month, which most of us earn annually.
4- The Rich Invent Money
Lesson # 4 from rich dad poor dad is that the being bold is the key to invent money. This world is full of smart people yet it is the bold one who makes a difference. If you learn the art of taking a calculated risk with the bold decision making power then Congratulations!!! You are on the right path for inventing money. Think big and do not have a fear of losing as “winners are not afraid of losing but losers are”.
5- Learning is earning
Robert Kiyosaki elaborated in the first key point of rich dad poor dad is that rich don’t work for money, but here he explained the concept of working for learning. It means your core purpose of work should not be money. You should be aiming to learn your particular skill up to that extent where you become a master of it. If you stop learning, you stop growing, so focus on the skills that can be beneficial for your life and career. Most of the people don’t get financial success because for them the pain of losing is much greater than the joy of winning.
Robert Kiyosaki stressed to have skills of sales and marketing under your belt as it is compulsory for people aiming to have financial freedom. So, invest in your mind as it is the best investment you can have.
6- Overcome barriers
The main difference between rich and poor people is how they tackle their problems. If you have developed financial intelligence still you can face hurdles in the shape of 5 main obstacles that are given below:
- Bad Habits
I have tried to explain Rich dad poor dad key points so that you can analyze how important this book is for financial Intelligence. If you further develop the interest in this topic then do read books of Napoleon Hill. Who has drafted books based on the interviews of the rich people which includes people like Henry Ford and Thomas Edison. Hope so this article will help you to increase your knowledge, looking forward to your kind suggestions.