If you are adding any books to your Christmas list then this should be one of them. Rich Dad Poor Dad has what can only be described as a cult following and fan club. It’s hard to meet one person who has significant business achievements and wealth who has NOT read this book. We have summarised the 6 main lessons, and let us tell you it was hard to keep it short here :) If you want to create wealth for yourself, your family, the greater good of all then give this one a go.
The author describes two dads with two different perspectives : Poor dad was highly educated, Rich Dad finished school at 8th grade. Both were successful and had a substantial income but one was always struggling and the other never did. Stuck between two completely different approaches, the author had to learn for himself. At the age of 9 he made the decision to listen to his 'rich dad' about money and this led to the 6 valuable lessons summarized here:
Lesson 1: The rich don’t work for money
This sentence may trigger some people so take a breath….the poor and the middle-class work for money. The rich have money work for them. You must learn how to make money work for you. Take fear out as the primary emotion because emotions are just energy in motion. Master the power of money instead of fearing it. If you forget you are working for money you will discover ideas most people don’t think about.
Lesson 2: Why teach financial literacy?
The Bigger you want your wealth to be, the stronger your foundation must be. It’s not about how much you earn, it is how much you keep that makes you wealthy. Know the difference between an asset and a liability…. Sounds simple right? Well we may think we know what this is, but dig deep and see how strong your foundation and understanding really is.
Lesson 3: Mind your own business
The rich focus on their asset column whilst everyone else looks just at their income statement. The key here is to know what the main asset in YOUR business is. Now work and focus on that. Don’t work your whole life for someone else's business. There’s a big difference between your profession and your business. This point took us a bit of time to get the 'ahaaaaa' moment. Stick with it.
Lesson 4: The History of Taxes & The Power of Corporations
This lesson starts with the story of Robin Hood, as a kid this story made sense. Helping people is good, right? Of course it is, but what we miss as kids is understanding how taxes really work. Don’t confuse this lesson as 'no one should pay tax' as this is not the message at all, it is how a “one size fits all” system doesn’t work and if you understand it you will make better choices.
Lesson 5: The Rich invent money
In the real world, it often isn't the smart people that get ahead but the bold. The thing that holds most people back is self-doubt, not a lack of knowledge. We know the answer but we don’t have the courage to act, if you prefer to play it safe with your money and your education you limit your options. Knowledge is wealth, use that knowledge timely and take action. Blaming your boss/your government will just keep you where you are. Focus on learning, on working hard, on saving and borrowing, on increasing your financial intelligence. As people often say: “don’t wait for luck to happen, create your own”. The most powerful asset you have is your mind so train it well.
Lesson 6: Work to learn, don’t work for money
Job Security meant everything to poor dad whilst learning meant everything to rich dad. In this chapter Robert, the author, talks to a reporter who wants to be a best-selling author. When asking her what she would do to reach that goal, she said anything. Well, anything except take a sales course to get good at selling her ideas, her book, her craft, so she could get published. Most people are only one skill away from great wealth. What skill are you missing?