When I read “Rich Dad, Poor Dad”, I took away three lessons on building wealth that I’ve carried with me through my life and career. I learned that most people work for money, but the rich make money work for them; and that it’s not how much money you make — it’s how much you keep.
I also learned that rich people acquire assets, but others acquire liabilities they only think are assets; and that financial struggle often comes from a lifetime of working for someone else.
I became a fan of Robert Kiyosaki . His book “Rich Dad, Poor Dad” opened my eyes to the world of wealth.
Early in life I learned there are fundamental differences between how the rich think and act toward money compared to everyone else.
I began to adopt those same thoughts and strategies, and found them to be completely true. There were four crucial lessons from “Rich Dad, Poor Dad” that changed my financial life:
1. Most people work for money —
rich people have money work for them This lesson has become such a cliché that many consider it to be a myth. But it’s absolutely true. Talk to just about anyone about how to make money, and the conversation will inevitably gravitate toward jobs.
That’s not wrong thinking either, at least not early in your life. The first step toward building wealth is generating a basic income.
If you have no assets, and no skills you can sell to the general public in exchange for money, a job is certainly the most convenient way to produce a cash flow.
But the difference between rich people and everyone else is that the rich don’t stay in the job phase for very long. They realize early that to become rich, they need to become the people who hire others into jobs, and not a job holder.
By contrast, the rest of us typically spend our lives in the job phase. And we’re trapped once they believe that a job is the only way to earn money. That locks you into working for money for the rest of your life. But the rich learn the virtue of becoming business owners early. And running a business is, more than anything else, about learning how to leverage resources and people to earn more money than you ever could by exchanging your own labor for a wage.
For example, as a business owner, you can gravitate toward your talents — those skills and abilities you have that hold the greatest potential for you to earn big money. Once there, you can either hire others as employees or use subcontractors to do the work that generates the income.
Essentially, you become the overseer of the business, rather than a front-line worker. As the business becomes more profitable, you invest some of those profits into building your business and increasing your income.
2. It’s not how much money you make that matters — it’s how much money you keep
One of the behaviors that most separates the rich — especially the self-made rich — from others is the emphasis on saving money.
One of the fundamental obstacles for most people is that budgetary priority goes to spending.
Saving gets only what’s left over. For example, let’s say you have a net household income of $5,000 per month. After paying necessary expenses and a few luxuries, you have $250 left to put into savings. That means only 5% of your net monthly income is going into savings. And in many households, even that amount is swallowed up by unexpected expenses. In others, the amount seems so insignificant the savings effort is abandoned entirely. The situation is very different among the rich, particularly among those who aspire to become wealthy. Though financial planners may recommend saving and investing 10% or 15% of your income on a regular basis, the aspiring rich may save 30%, 40%, and even 50% or more of their income.
T. Harv Eker in his best selling book the secrets of the millionaire mind says ” Rich people are good money managers” the rich get richer simply because they know how to manage their income. This thought goes right to what Robert said in Rich Dad, poor Dad.
3. Rich people are smart workers
While some of us spend time working hard every day, rich people are just smart at what they do. The myth of our life is: Work hard, then you’ll become Rich. Rich people are not just hard workers, they are smart workers . Therefore they get richer and we keep getting poorer.
It’s time to make a decision to not only keep working hard but also to keep working smart because this is the best way to wealth creation.
There are more lessons I got from Rich Dad,Poor Dad book which I no longer stop implementing in my life.
Hope these lessons will help you as well!,
💎 could you please tell me what you really got from this article that you’re ready to implement in 2021?
- Are you ready to learn how to make money will work for you?
- Are you now willing to learn the basic skills on investment?
- Do you really want to become a good money manager?
THE POWER LEAD 