My Simple Thoughts On “Rich Dad, Poor Dad ”By R. Kiyosaki

If you have not read the book, I will nonetheless tell you what I think are its most essential teachings.

Robert Kiyosaki’s Rich Dad, Poor Dad is a book that has become ubiquitous in the corporate world.

His background is typical of that of each successful entrepreneur. He did not come from a wealthy background, was not the brightest, or the most accomplished person.

As a matter of fact, he tried his hand at more than one business venture, and several of them ultimately failed. Among the businesses he founded and wrote about in the book is one that makes nylon Velcro wallets.

As a result of foreign competition, his once-thriving business collapsed and ultimately bankrupted him.

While his business ventures often did not pan out, he did well selling courses on personal finance and development. When he wrote and published Rich Dad Poor Dad, his career took off. Before that, he gave seminars all over the world.

All right, let us get started.

First and foremost, Kiyosaki advises his readers to not labor for money.

Their wealth is put to good use for them. The typical worker receives an hourly wage and, regardless of how hard they toil, earns roughly the same amount each hour.

However, the wealthy work tirelessly for one reason: to increase their wealth.

Kiyosaki argues that the wealthy follow the strategy of “work smarter, not harder” to amass wealth.

Putting money into investments is one strategy for making your money productive. Consider making a stock market investment.

An investor can expect a high rate of return if they choose the appropriate stock, the right industry, and the correct moment to invest (preferably when markets are down).

Let me illustrate with a simple scenario: you decide to put $1,000 into a stock you believe has great potential and plan to hold it for the next five years.

Five years later, if you invested the money wisely, the value of your stock should have increased, allowing you to sell it for a healthy profit. Basically, you are engaging in stock investing.

Do you get it now? If you choose well, you can sit back and watch your money increase without doing anything.

If you held it for long enough, it would eventually fade away. The investment will yield a return with minimal effort on your part. All well, but what if you do not have the resources or experience to make an investment? Foremost things first, you need to start putting money away.

As opposed to focusing on earning money, you should devote your time and energy to learning about personal finance. This way, when the time comes and you actually have some cash on hand, you will already have a handle on how to put it to work for you.

The term “passive income” refers to financial gain that does not necessitate active effort.

It is a way to make money “in your sleep or in your pyjamas ,” since you do not have to do anything to earn it.

Once you understand the concept of leverage and put your money to work for you rather than the other way around, your entire perspective on money will shift.

Learn to put your 9-to-5 income to work for you instead of just sitting there till the end of the month.

Many people let their fears dictate their actions. See, many people are too scared to try investing their money in the first place for fear of failing and suffering a financial loss.

Investments are seen as risky by the poor and middle class, but in truth, everything is risky. No matter what you do, life will eventually give you the bill for not trying to improve your financial situation.

Most people do not even bother to try because of nerves or other sensations, but here’s the thing: you should never let those sentiments stand in the way of your accomplishment. You need an open mind and the ability to analyze any circumstance objectively.

Kiyosaki learned this lesson the hard way when he and his best friend Mike tried to open a restaurant. They had a comic book rental service in their home, and he would rent out comics to his friends and neighbors.

Minding Your Own Business In the words of Rich Dad, “If you do not love it, you will not take care of it.”

Most wealthy individuals believe that if you have to put in a lot of time and effort, you should do something you enjoy.

You need to wake up with a spring in your step before beginning that activity. Instead than worrying about their net worth like everyone else, rich people put their attention toward building up their assets, such as real estate and luxury goods.

The gap between assets and debts is significant.

Simply simply, an asset is everything of value that contributes to your financial well-being, while a liability is anything that detracts from your financial well-being.

Businesses, stocks, bonds, income-producing real estate, and royalties from intellectual property like music, scripts, and patents are all examples of assets.

Also, anything that helps you make money. Among the many possible sources of debt are your home, automobile, phone, credit cards, etc.

Kiyosaki said that if a business is not your primary source of income, then it is an asset.

To be considered an asset, a firm must be self-sustaining; in other words, you should be able to take a weeklong vacation and return to a steady stream of revenue.

You want to leave your day job and start your own business; what steps should you take?

You should begin by making investments in yourself so that you have the groundwork in place to build money. Yes, I am referring to the need of teaching people how to manage their money. Then you will be ready to launch or acquire an enterprise.

You have the option of saving or borrowing. Since 90% of businesses fail, Robert Kiyosaki recommends that if you create a firm and take it public, you sell all of the company’s stock within a year of going public.

Wealthy People Create Money There has never been a more favorable time to invest in property and amass money.

Making a fortune and going from zero to a million dollars has never been simpler. Take yourself back 150 years and picture yourself striving to make a better life for yourself by starting with nothing. That is such a cool assignment! One Hundred fifty years ago, those with the most land and livestock were the wealthiest.

Although there were retailers and various types of small business owners, property was the true value back then.

Then the industrial revolution hit in the 18th century, and the people who owned factories and other production facilities reaped the greatest financial rewards.

It is not only about who has the most buildings, mills, or assembly lines in the 21st century anymore, but those things assist. Whoever possesses the most up-to-date knowledge gets the upper hand today.

According to Robert Kiyosaki, “The players that get out of the Rat Race the quickest are the folks who understand statistics and have inventive financial minds.”

Is there a reliable source for market data?

Who has the superior understanding of the stock market?

Who here is the better investor, and why? And that’s the fundamental reason a lot of people don’t succeed.

They do not save anything, and they spend whatever they earn.

Most people mistakenly attribute their financial success to chance events like winning the lottery or hitting a massive jackpot.

Instead of griping about being forced to work with people you despise, perform tasks you despise, and earn money that does not satisfy, you may be gaining the knowledge you need to advance in your career.

Best deals are rarely given to first-timers. Only the wealthy can usually afford them. However, as your level of expertise rises, so will your access to new and exciting prospects.

Finally, those are the three most essential lessons from “Rich Dad Poor Dad” that I found to be the most helpful. You should read the whole book if you want to learn more, but those are the primary takeaways you can start using right away.

Success requires effort and commitment, and if you do not manage your time well, you will not be able to get where you want to go.

Make use of your time now by focusing on what really matters to you and what will make a difference in your life right now.

The most effective method of development is to actively commit to the appropriate course of action, which is…

First, you should invest in yourself by getting a good education on money, as up-to-date knowledge is the best asset you can create.

Putting your money to work for you rather than you for it.

Make or buy companies, then sell them within a year after going public.

Keep in mind that there is danger in everything you do, but that does not give you license to put your money at risk by investing in things you do not fully understand with individuals you can not completely put your faith in, such random brokers and bankers.

It is important to take risks, but only the kind you can handle.

It is imperative that you weigh the odds of success, the benefits and drawbacks, the potential costs if things do not go as planned, and much more.

If you know what you are doing, it is not gambling,” Robert Kiyosaki observed. Throwing money at a deal and hoping for the best is gambling.

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