Rich Dad, Poor Dad - A guide to meet your financial goals

Rich Dad, Poor Dad focuses on imbibing financial literacy at a young age. The author urges the schools to introduce a mandatory subject known as financial literacy and wisdom to make the students future ready.

This book is enriched with experiences and lessons imparted by Robert Kiyosaki to meet the financial goals. This is truly an invaluable gift as it comprises teachings and experiences that only rich parents impart to their kids that help them attain financial independence at an early stage in life.

Robert Kiyosaki’s primary focus in Rich Dad, Poor Dad is educating the people to make the money work for them rather than the other way around. Reiterating the importance of financial literacy, and financial independence, the author urges the readers to transform their mindset from accepting you can’t afford something to finding a way to afford it.

You can refer to book summaries and audiobook summaries available on various book summary apps.

Listed below are Robert Kiyosaki’s advice of investment and financial literacy:

Financial intelligence must be made mandatory in all educational institutions

It is often believed by schools and parents that if a person is smart and intelligent, then he must be good with money too. Unfortunately, that is not the case. Financial intelligence is a full-fledged course in itself. It needs to be learned. The result of lack of financial intelligence is not just seen in budding entrepreneurs but is also a problem for many wealthy and successful entrepreneurs. It’s high time that schools come up with some courses on it.

Face your fears to emerge victorious

Kiyosaki states that the people who fear disapproval are always stuck in their comfort zone. Even if they want to leave it, the fear will pull them further down. And this vicious cycle will never let the person become wealthy.

Find a legit way to save tax

Robert Kiyosaki adds another very important layer to this book by mentioning this point. Many people perceive tax saving is illegal. But that is not the case. These loopholes or benefits are offered by the government itself. The real deal is to educate yourself about these benefits.

Work smart to expand your business because that is what makes you truly wealthy

The author states that profession is something you do for 40 hours a week that helps you to pay your bills and bear expenses while business is something that helps you make money on your assets. You can only call yourself financially independent when your profession bears the expenses and simultaneously your business earns that much needed status in society because of all that wealth.

Make your money work you rather than the other way around

The third lesson imparted by the author is the importance of managing personal finance to the budding entrepreneurs. The earlier you start the journey of self-education and setting financial goals, the better! All this comes down to looking at your income and setting goals based on that income. The author also wants the readers to work for what they learn rather than working for what they earn.

Learn to take calculated risks

The fourth lesson is to develop risk taking abilities. Eliminating fear and taking calculated risks can actually help a person achieve his/her financial goals. The author mentions investing in shares, mutual funds and bonds instead of depositing all the money in fixed deposits or saving accounts. Higher the risk, higher the chance of becoming wealthy.

If you want to instill risk taking abilities in you, then you can read audiobook summaries available on various book summary apps.

Eliminate laziness from your life

The fifth lesson mentioned in this book is avoiding laziness and arrogance. The author mentions that laziness is not always stated as lying around and doing nothing. Rather laziness is about not doing what is important and devoting all your precious time and energy to only one thing. Let’s understand it with an example. If a person devotes all his time to business, he is neglecting his family. That person is showing laziness in spending quality time with his family by devoting all his time to his business. This step can make his wife head out for an expensive divorce.

While arrogance is having poor financial knowledge and resisting to admit it too. These two factors can prove to be harmful for even the most financially sound people.

Gaining financial literacy to understand the difference between assets and liabilities

The sixth lesson stated in Rich Dad, Poor Dad is about knowing the difference between an asset and a liability. This might seem silly to you. But understanding the difference between the two things is crucial to run a successful business. Some entrepreneurs mistake asset liabilities as assets and as a result invest in them. Treating your assets as employees who work for you to produce income is the right way to invest in assets.