The Rich Dad Poor Dad book is one of the best-selling personal finance books on the market. After having it being recommended to me so many times, I finally decided to read it. I am beyond glad I did. It felt as if a whole new world of information was suddenly opened to me. I was telling everyone I knew to read it too. I kept telling them on so many lessons that I learned. So I decided to write them down and here are 5 Money Lessons from “Rich Dad Poor Dad” that I learned. I hope they will be useful to you too.
– [ 1] Stop spending your money on items that give no return. We live in a materialistic world. As we make more money the more into debt we get by buying more expensive items. Instead of buying expensive items, think about the return you get from buying it. Does it grow your asset or does it become a liability? Does it make you more money or just take it away? If it’s the latter, then maybe think about investing that money on something that will help grow your assets and make you more money.
– [2 ] Invest and Grow assets and minimize liabilities. For instance, your house is a liability and not an asset. This point kind of goes hand in hand with the first one. Find out what are assets and liabilities. Once you discover more about assets and liabilities, you open a whole new world of wanting to only invest in things that bring you returns.
– [3 ] Learn from experience. Rich dad encouraged Robert to make his own experiences and learn from them. The best way to learn is from experience and practice. Although studying is good for you, hours of lectures without experience doesn’t teach you much of anything. So go out there and make your own experiences.
– [ 4] It’s not how much money you make, it’s how much money you keep. I loved this point in the book. If you make 100K a year but keep less than 10k in the end, that doesn’t make you rich. Next time you find yourself wanting to spend money on random items, Save that money instead or invest it.
– [5 ] Fear is keeping you from reaching your limits. In the book, Richard mentions that what keeps the poor from getting rich is the fear to take risks. His Poor dad said to play it safe and avoid taking too many risks, His Rich dad encouraged him to be bold and take risks. The higher the risks, then the higher the chance for a bigger return. Be bold, different, and take risks to reach your goals.
I highly encourage anyone to read the book themselves as these few lessons do not do it enough justice. I hope these 5 money lessons from “Rich Dad Poor Dad” can help you in your journey to make more money.