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Making Money Make Money

Four Key Takeaways from "Rich Dad, Poor Dad."

If you are interested in reading books related to personal finance and money management; you might have heard about Rich Dad, Poor Dad. This top-rated book was written by Robert T. Kiyosaki and Sharon L. Lechter in 2002, and the amazing fact is that it has sold more than 32 million copies over 40 different countries in 40 different languages.

It has sold more than 32 million copies over 40 different countries in 40 languages till now.

This book is basically about Robert Kiyosaki and his two dads whose financial conditions shaped his viewpoints. In this story, the rich dad is basically his own biological father, who is working as a college professor. On the other side, the poor dad is the father of his best friend, who is basically a wealthy entrepreneur owning multiple businesses. Both of those dads have some conflicting mindset about money.

The entire book is pretty interesting, and it gives several valuable lessons to the readers. Below we have listed 4 major takeaways from “Rich Dad, Poor Dad” book:

1. Rich people buy assets, not liabilities:

The asset is something that brings money to your pocket; it may be a house or bond. On the other side, a liability is the one that costs you money as it loses value with time; it may be a TV set or expansive car. One should know the difference between these two. The rich always prefer to invest in assets, whereas poor keep on making expenses; however, the middle-class people buy various liabilities considering that they are collecting assets.

2. Financial literacy comes with experience:

The experienced and well-educated poor dad says that one should study hard and obtain good grades so that he can get a good job in some reputed company. But rich dad says that it is more important to learn how money works so that you can find ways to make it work for you. In order to become financially smart; one should learn about market scenarios, investments, accounting and the law. When you have more skills, you are more likely to succeed.

3. One should know the tactics to sell:

At one phase in this story, a woman having a master’s degree in English literature put a question to Kiyosaki about how she can become the best-selling author. His answer was that you should join a sales training course because according to Kiyosaki, the best-selling author is not always the best writing author; but the one who knows how to run this business. One should get out of the comfort zone and practice tactics for selling.

4. Look for opportunities:

The rich dad always tells his kids to think like how to afford something; instead of saying I cannot afford it. The phrase makes a big difference. When a person says I cannot afford it, the thought simply shut down the brain to work towards that; but when one thinks about how to afford, it, this thought creates space for excitement, possibilities and dreams. This simple answer can open doors for new opportunities and ultimately, increases the success rate.