One of the best ways to gain knowledge is through reading. In this context, some books stand out so much that they continue to convey their lessons even over many years. This is the case with the world famous bestseller Rich Dad Poor Dad.
Released in 1997 by authors Robert Kiyosaki and Sharon Lechter, this book on financial management has sold more than 26 million copies worldwide.
Such success has an explanation: Rich Dad Poor Dad teaches readers how to handle finances and put the psychology of money to good use, in other words, maintain a proper mindset to manage one's resources.
If you haven't had the chance to read this book yet, but want to know the authors' teachings, check out this article until the end!
Rich Dad Poor Dad Story Summary
The book Rich Dad, Poor Dad tells the story of Robert Kiyosaki and his friend Mike. Throughout his career, Robert receives financial guidance from his own father – poor dad – and Mike's dad – rich dad.
While both are extremely smart and have been successful in their own careers, they hold very different views when it comes to dealing with money.
While the poor dad, who is in continual financial difficulties, is focused on scarcity, the rich dad believes that money is beneficial and that it is necessary to learn how to manage it in the best possible way in order to succeed.
To get an idea of the divergence of thoughts between these father figures, while rich dad said that lack of money was the root of all evil, poor dad claimed exactly the opposite: for him, loving money was the root of all evils.
Rich dad was also always emphasizing the importance of persistence and planning to achieve goals in life. Faced with such opposing figures, Robert was forced to choose whose advice he would follow, and he chose to listen to rich dad.
Thus, he learned several lessons about how to manage your own money to succeed in business and personal life as a whole.
Rich Dad Poor Dad Teachings on Financial Health
Check out the main lessons about financial education in the book:
Don't be part of the rat race
Throughout the book, author Robert Kiyosaki cites the so-called "rat race" several times. In a nutshell, it refers to the financial cycle that most people experience: as soon as they start earning money, workers spend their entire wages buying superfluous consumer goods, depleting all their earnings.
This pattern of behavior repeats itself regardless of the salary range of the individual, who only starts to buy even more expensive goods when he starts to earn more money.
The problem is that the purchased items do not serve to generate wealth, and make the worker always indebted, and therefore trapped in the rat race for more money. Therefore, Robert recommends that this cycle be broken by changing the way you spend.
Study continuously
For the author, the best way to break the rat race cycle is investing in knowledge and studying about finance management. This skill goes beyond the classic receive, spend and save, as it encompasses learning how to invest money.
According to Robert, the school does not help citizens understand about finance. Therefore, it is necessary to seek alternatives beyond formal education in order to be continuously informed about investments, market laws and profit strategies.
Start early and enjoy your time
Another teaching shared by the author is the need to start building your own wealth as soon as possible. Even those who didn't have the opportunity to start still in their youth should do it from now on, not wasting time to complain because they think it's too late.
In addition, Robert teaches readers about the importance of making the most of their available time to develop further. Therefore, instead of spending hours in unproductive activities, it is more recommended to read instructional books, participate in seminars and lectures, take courses, etc.
Teachings of Rich Dad, Poor Dad About Investing
See Robert Kiyosaki's key investment lessons:
Understand the difference between assets and liabilities
Kiyosaki presents in the book a slightly different concept of active and passive. For him, an asset is what brings money, while a liability represents an expense. Therefore, differently from what is commonly heard, the author classifies goods such as cars and real estate as liabilities.
This is because these acquisitions tend to depreciate and do not bring cash flow to the buyer. Therefore, the best financial decision is always to invest in assets, that is, investments that bring back a flow of money.
Let the money work for you
This author's teaching has to do with the rat race. According to him, we should not be stuck in the routine of working to get money. After all, this cycle makes workers hostage to their jobs and bosses, not having autonomy in personal life and not being able to increase their earnings as they wish.
Therefore, it is necessary to make the money do the work, that is, to make investments that yield more money without having to work proportionately more for it.
Don't be afraid to invest
Finally, another valuable lesson from the book has to do with the fear of investing, a very common problem. In general, people only learn to work for the money and save a certain amount. However, just doing this is not very smart as it limits gains.
Therefore, it is necessary to lose the fear of taking risks and invest in fixed or variable income options to reach new levels of financial success.
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