In this post, I am going to tell you 10 Crazy Lessons From Rich Dad, Poor Dad which will change your life forever!
So, if you are a person who just spends all his money in luxuries such as big house, drinks, fancy shoes etc.
Then you should definitely give this article a read because it will help you discover the unlimited benefits of investing your money.
Also, it would make you financially literate which will surely help you in the long run.
If you want to buy this book and read it yourself then you can buy from here.
However, if you want to know the key takeaways (learning) from this book.
Then this article is for you.
So, without any further delay let’s straight dive into it!
1. Pay Yourself First!
This is the foremost learning of this legendary financial book that you should in any situation, “Pay Yourself First“.
Even if you have millions, or you are broke the first thing you should do when you have money in your hands is to pay yourself first.
Even if you are doing a job or have a business when you see the earnings you starts to think that which luxury you should buy or which bills you have to pay.
However, there are a very few people who take some amount of money for themselves first and then pay their bills or invest in luxuries.
And trust me this will surely help you in long term when you will invest this money which you have payed yourself.
Also, even the Author of this book Robert Kiyosaki tells even when he was totally broke in his life, he paid himself first.
2. Learn to listen.
You might have seen some people around you who have very rigid beliefs, and they don’t accept any kind of change in them.
These are the most ignorant people, and mostly they don’t find the path of success for themselves.
Also, that is the reason why Robert Kiyosaki has told in his book that you should always listen the other people whom you are talking with.
In this way, you got to know the perspective and nature of the other person.
You also get to know about their learning, experiences and mistakes which can be beneficial for you to get success in a long run.
So, if you are not a good listener then you can’t be a great entrepreneur.
Mark my words!
3. Buy Luxury Last, Not First!
This is pure gold advice from this great financial book of all time that “You Should Buy the Luxuries Last, not First!
As soon as people get their paycheck in their hands, they start to think about the luxuries they can buy from it and investment takes the backseat.
Also, this problem is not only for job going people but also for business owners as well.
It is because everything good or bad is taught in school and college except financial education which is a basic necessity of today’s time.
And that is the reason why so much of startups and businesses fails because of lack of financial literacy.
I personally invest 10% of my earning in shares and other financial investments.
And from the rest 90% buy tools and other things.
You might ask me that why we are earning if we can’t even buy luxuries for us?
First, of all it is very important to invest your money in order to grow it and save it for the future.
Also, the value of luxuries like car, bike etc decreases as time passes by which makes it a liability for you.
And if you want to buy luxuries then this book gives you great advice on how you can buy luxuries while investing your money.
So, keep reading this blog to know about that way!
4. Reduce Expenses and Liabilities.
One of the worst thing that every new money earner makes is that they take a home loan at the starting of their career which puts them into a big bad debt.
I know the feeling that you want to give your parents a comfortable life.
But there are a lot of disadvantages of buying a house early in your career.
If you want to know more about this topic then see this video from Ankur Warikoo.
You might be thinking that why does newbie earner do this mistake?
It is because they haven’t any clue about financial knowledge.
Buying a house is just a small example there are a lot of blunders that newbie earners make in their life.
And Robert Kiyosaki gives the same advice in this book that you should keep your liabilities and expenses at minimum.
Also, Gary Vee who is a super social media millionaire has often said that in his early career instead of putting his money on expenses and liabilities
He put his money in the shares of big companies like Facebook and Twitter.
However, I am not saying that you should cut down the necessary expenses in order to save money.
But don’t overuse your hard-earned money on liabilities and expenses.
5. Aim for Valuable Assets.
Now this is the difference between a financially literate and illiterate person.
That the first invests his money on valuable assets and make his empire, but the latter one wastes all his money on liabilities.
And that is the reason why one grows rich over time and the latter grows in debt over time.
And this tip is one of the building block advice of this book, “Rich Dad, Poor Dad”.
In this book, there is a contrast on how Rich Dad and Poor Dad use their money?
Poor Dad being extremely literate and highly educated invested all his money in luxuries.
That is the reason why at the time of his death he was under so much debt.
However, Rich Dad being an illiterate man put all his money in investments which helped him grow his empire from zero to hero.
The thing that made the difference between these two were that Rich Dad was super financially literate, but poor dad was financially illiterate.
6. Money or lack of money is due to your emotions.
Here’s a quote from this book,
“People’s life is forever controlled by two emotions, Fear and Greed”.
This is called as a “Rat Race” in this book that you get up to go to office, earn money and this cycle goes on forever.
However, this is not the main reason why people have such financial crisis.
It is because they don’t accept their emotion fear that drives them to go to their not so happy job.
Or they don’t accept their emotion of greed in which they fantasize that what luxuries they could buy once they go their paycheck in their hand.
And that is the reason why most of the people avoid the money conversation.
It is because they always fear from these two emotions and don’t want to accept it even to their inner self.
So, if you want to be rich then you have to accept these emotions to your inner self and find a way to get relief from this emotion.
Also, after getting paycheck in your hand don’t greed that which luxury you can buy with this paycheck.
Before that sit down and ask yourself this question, “Do you want to spend your hard-earned money on a single thing that is a liability for you”.
I am damn sure that you will change your perspective.
“Always remember that you should control your emotions rather than emotions taking control of you”.
And that is the reason why a financially literate people ask so many questions to themselves so that they can take control of their emotions.
So, remember that money or no money based on your take on emotions.
7. Work to learn, not to earn.
Think of a reason why you work at a place?
Here’s the reason,
Mostly people work is because they want to earn a lot of money from the job and get a security rather than acquiring a new skill from it.
And this is the reason why most people suffer from financial turmoil in their life.
Robert Kiyosaki in this book has said that he has quitted a lot of his jobs because there was nothing left for him to learn there.
Even when his real father has told him not to quit his job.
And that is the reason of his success because he preferred to learn something from his job and money was a byproduct for him.
Yes, money is important for life, but you should work for learning first then to earn.
8. You become what you study!
This is another super thing which Robert Kiyosaki has mentioned in this book.
Let me explain you this with an example.
Suppose that you listen those kinds of songs which disrespect women a lot then intentionally you’ll start disrespecting women a lot.
Whereas if you watch movies which portrays that encourage women to make their future then your mind will grow like that.
And that is the reason why every successful people read books a lot because they want to make their mind in the right way.
So, always remember not to surround yourself with 10 stupid people.
Instead, surround yourself with those 5 more successful people than you so that you can successful like them.
9. Reinvest excess cash generated by assets.
Reinvesting is one of those things which people always tries to avoid they think that their job will stay with them forever.
And they just have to invest one time. But trust me guys this is another foolish mistake which is caused by lack of financial literacy.
And Coronavirus pandemic is one of those few examples that tell us that our future is uncertain.
So, let me explain it with a personal family story of my family member.
It is the story of my Mama (Uncle), he is a Stock Market Investor and an Engineer.
He is an excellent share market dude and this skill has helped him cope up the lockdown easily without any job.
Also, let me tell you that he doesn’t invest all his money into share market instead he put on 10% of his saving in share market and 90% in fixed deposits.
But this handful of 10% money has helped him generate a good amount of money.
And he doesn’t stop here, he uses some money on his expenses like food, cloth etc and again reinvest the existing money and profit again to share market.
Yes, he is pretty reluctant till now to share the market and want to play it safe by putting his major amount of money in Fixed Deposits.
But the conclusion is that see how such a small amount of assets has helped my Uncle to cope up Covid-19 lockdown without any problem.
Imagine if he had put his money in other high income assets not in Fixed Deposits then he would have earned more.
This is the power of buying assets and again reinvesting it.
10. Take yourself between people who are smarter than you.
Let me explain this important saying from this book with an example,
Go to a friend of yours and ask them that if you can crack Civil Services or not?
Mostly friends would say that something like this, “Are you mad bro it is extremely difficult to crack it and you even in your dreams can’t crack it”.
Your friend could have said this due to two main reasons:
- Either he is insecure and don’t want to see you successful, and I recommend go away from him ASAP!
- Or his mind is made like that due to the society.
But if you will go to a person who have cracked a Civil Services exam.
He will tell you that you have to work hard, do this and that and follow this book, and you will crack it for sure.
And that is the reason why always successful people stay away from negative people who want to pull them down.
Yes, some of your friends are de1motivating you because they are influenced by what society say.
And in order to avoid being demotivated these friends.
Always try to surround yourself with those people who are either smarter than you or at least have similar goals.
It can be your good friends, family member or your mentors too.
And it will change your mindset from “I can’t do it, it is not made for me” to “I can do it, even it is a different way where no one is going”.
11. Let your assets buy the liabilities.
This is my favorite lesson in all these lessons from Rich Dad Poor Dad, and he learned this lesson when he wanted to buy a big house.
Like most other people if you are financially illiterate then you will put all your hard-earned money in one liability which is a big house.
Or you can also take a loan for your house which is even more worse.
But here’s the solution which Robert has clearly mentioned in this book.
He says that whenever he wanted to buy a big liability, he put his money in real assests.
Then he would wait till the amount of profit from these assets cross the liability amount and after that buy the liability which he wanted to.
The main point I want you to focus is that you should invest in a liability when the amount of profit from the asset is more than liability.
It is because in this way you would have some profit left along with initial amount so that you can reinvest back.
12. Financial Education Never ENDS!
Now if you think by reading this book you are fully financially literate then my friend you are totally wrong here!
Even the rich dad of this book says that, “Financial Education never ends, the more I discover, the more I have to learn”.
These lessons from Rich Dad, Poor Dad is just a start of your financial literacy.
And that is the reason why, Robert has written a lot of other financial books too which also doesn’t have all the financial knowledge.
It because even he even doesn’t know financial education fully which is a never ending process.
Frequently Asked Questions.
According to Amazon, there are in total 26 books available of Rich Dad, Poor Dad which is written by Robert Kiyosaki.
It is totally worth to read Rich Dad, Poor Dad because it is the best book if you want to make your children financially literate.
So, if you want your child not to struggle in their adulthood with money problems then I highly recommend this book to you.
Alam Kimi is Mike from Rich Dad, Poor Dad whom he has invited for an interview on May 4, 2016.
It was to confirm that Rich Dad is a real person and have existed on this planet Earth.
The real name of Mike’s Dad who is the Rich Dad is Richard Kimi who wasn’t the real father of Robert Kiyosaki
But he guided him on the right path which is what real fathers do.
Did I miss anything?
If you want to buy this book then buy it from here as it would help my blog to grow.
Now I’d like to know your opinion.
If I have missed any important learning from this book?
Which of the learning from this article you are going to implement in your life?
Either way tell me in the comments down below!