Important Lessons from Rich Dad Poor Dad Book by Robert Kiyosaki and Sharon Lechter
We’ll discuss the Important Lessons from Rich Dad Poor Dad Book by Robert Kiyosaki and Sharon Lechter. Rich Dad Poor Dad is about Robert Kiyosaki and his two dads — his real dad (bad dad) and his best friend ‘s father (rich dad)—and how both men influenced his views on money and investment. For you to be rich you don’t need to earn a high income. Rich people work with them to make money. Rich Dad Poor Dad Book is one of the motivational books. Rich dad poor dad author is Robert Kiyosaki and Sharon Lechter. There are so many Robert Kiyosaki books.
Rich Dad Poor Dad Lessons
Here is the list of rich dad poor dad lessons:
MIND YOUR OWN BUSINESS:
Around Middle and Lower Class:
… Most people work for everyone except for themselves. We work for the company’s owners first, then the government through taxes, and finally the bank which owns their mortgage.
As downsizing became the “it” thing to do, millions of employees figured out that they were eating them alive with their biggest so-called asset, their home. … During a time of financial crisis, what they felt were riches could not help them survive.
Summary Recall # 3 on what an asset is: assets put money in your pocket. Rich people buy things. The poor and middle classes are acquiring liabilities which they believe are assets.
About the rich:
The rich focus on their columns of assets, whilst everyone else focuses on their income statements. Keep your daytime job, but start buying real assets, not liabilities or personal effects that have no real value once you get them home. You can indulge in some luxuries as your cash flow grows. An important distinction is that rich people last buy luxury while poor and middle-class people tend to buy luxury first. … Buying a luxury on credit also inevitably causes an individual to hate the luxury as the debt is a financial burden.
… Now, you ‘re ready to know the rich ‘s greatest secret — the secret that puts the rich far ahead of the pack.
THE HISTORY OF TAXES AND THE POWER OF CORPORATIONS
… Wealthy dad fashioned himself as a tax history expert. Rich dad demonstrated to Mike and me that originally there were no taxes in England and America. … Though it was meant to punish the rich, it actually wound up punishing the very people that voted for it, the poor and middle class. … The issue was that the government’s demand for revenue was so large that taxes on the middle class quickly had to be raised, and from there it began to trickle down.
To limit their risk, the rich built the corporation as a vehicle… It is the understanding of the legal corporate system that gives a massive advantage to the wealthy over the poor and middle class. A corporation is merely a legal document creating a soulless legal entity. With it, the rich ‘s money was covered once again. It became famous since a corporation’s income-tax rate is less than the individual income-tax rates.
Whenever people want to punish the wealthy, they don’t just comply. They ‘re reacting. They have the money, the influence, and the purpose to make things change. They are not just sitting there, and paying more taxes willingly. Instead, they are searching for ways to reduce the tax burden. They hire intelligent lawyers and accountants and convince politicians to change laws or create legal loopholes. Their abilities are being used to trigger progress. … The poor and the middle class have no equal resources. We sit there and let the needles of the government get in their arms and let the donation of blood begin.
Rich dad constantly reminded Mike and me that not the boss or the supervisor, but the taxman, was the biggest bully.
A corporation can do a lot of things an employee can’t do, like paying expenses before paying taxes. … Employees get taxed and earn, and they continue to survive with what’s left. A company earns, spends all it can, and is taxed on anything left over.
We strongly recommend owning your own corporation wrapped around your assets as part of your overall financial strategy.
And that… is one of the biggest secrets that put the rich ahead of the pack.
THE RICH INVENT MONEY
“Often in the real world, it’s not smart who gets ahead but the bold.” There are lots of poor people who are extremely talented and lots of wealthy people with relatively little genius. We prefer to assume that more money comes with more skilled, more talented, or more value-added to society. The truth is very different about the money. “Poor and middle-class working for money,” would say Rich Dad. “The rich manage to make money. The more real money you think is, the harder you are going to be working for it. If you can comprehend the notion that money isn’t true, you’ll grow richer quicker.
The foundation upon which wealth can be created changes over time: “Land was wealth 300 years ago. And the person who owned the land took possession of the property. Later, wealth was in factories and manufacturing, and America rose to domination. The Wealth was owned by the industrialist. Wealth is in the news today. And the person with the most opportune information owns the wealth.
“What fewer people realize is that luck is created just like money. And if you want to be luckier and create money rather than hard work, then your financial intelligence is important. “The world is always giving you lifetime opportunities, every day of your life, but all too often we fail to see them. Here’s how the author suggests we exploit them: Financial intelligence simply has more options. What else can you do to improve your financial position if the opportunities aren’t coming your way? I encourage people constantly to invest more in their financial education than in stocks, real estate, or other markets.
WORK TO LEARN— DON’T WORK FOR MONEY
“Safety at work has meant everything to my educated father. Learning meant everything to my rich dad. “It is shocking how little some talented and educated people earn, as we learned in Lesson 5. I can be a world-class author, but if I don’t know the first thing about marketing and selling, I might be the best-kept secret in the world and live in poverty.
The solution is to broaden your skills set. Get out of your comfort zone, and pick up some sales, accounting, finance, and law skills. In our society, selling especially as a profession is generally looked down on, but every single one of us sells every day, even if we simply sell our ideas to others. The author places marketing and sales as some of the key basic skills for your financial IQ:
I stated earlier that financial intelligence is a combination of accounting, expenditure, marketing, and legislation. Combine those four technical skills and it’s easier to make money than most people would think. The only skill most people know when it comes to money is to work hard. Rich dad encouraged me to do exactly the opposite. “You want to know a little bit about a lot” was his suggestion. Instead of just working for the money and protection that I admit is necessary, I suggest they take a second job which will give them a second skill.
Poor Dad Rich Dad Summary
Few points of Poor Dad Rich Dad Summary is written below:
“There’s a distinction between being poor and being broken. Broke is provisional. Poor people are eternal.
“Money comes and goes, however you gain control over it if you have the knowledge on how money works and you can start creating wealth.”
“Two emotions dominate people’s lives forever: terror and greed.”
“So many people say, ‘Oh, I’m not interested in jobs.’ And yet they’re going to work eight hours a day at a job.”
“Think you are lying to yourself that a job makes you happy.”
“Intelligence is solving problems and bringing capital.”
“You need to know the difference between an asset and an opportunity, and purchase properties.”
Putting money in your pocket is an advantage. Liability is getting money out of your pocket.