Money-making isn’t a subject you’ll find in school textbooks. Robert Kiyosaki, the mastermind behind the celebrated book “Rich Dad Poor Dad,” puts it best: schools groom us to be employees, not business moguls. If you grew up in a typical family like most, you might have been handed down some outdated financial advice. It’s not because your folks didn’t care—they just passed on what they knew.
Lesson One: The Rich Don’t Work for Money
Picture nine-year-old Robert and his buddy Mike. They faced the harsh truth of social class when they were snubbed from a beach bash. Robert’s “Poor Dad,” a teacher, advised him to “earn more money.” But Robert was hungry for a different kind of wisdom. Enter Mike’s dad, whom Robert called “Rich Dad.” Despite not finishing eighth grade, this man ran successful ventures. He invited the boys to learn about money, not through lectures, but by working for 10 cents an hour on Saturdays. “Opportunities come and go,” Rich Dad would say, highlighting the need for quick action. At first, they dusted off canned goods in a tiny store. It was a snooze-fest! But when Robert wanted to quit over the pennies, Rich Dad dropped a truth bomb—life’s curve balls are lessons, not excuses to bail out. He nudged Robert to look beyond the immediate grind.
Lesson Two: Why Teach Financial Literacy?
Rich Dad’s first piece of advice? “To be wealthy, understand money.” He taught that an asset fills your pocket, while a liability empties it. This may sound simple, but it’s a game-changer many get wrong, buying liabilities disguised as assets. Robert champions financial education as vital for wealth management. Many earn money but lack the know-how to manage it. “They learned to work hard for money, not to make money work for them,” he quips.
Lesson Three: Mind Your Own Business
Ray Kroc, the genius behind McDonald’s, famously noted, “I’m not flipping burgers; I’m in real estate.” This lesson emphasizes knowing the difference between your job and your business. Your job might be banking, but your real business should be expanding your asset portfolio. Keep that day job, but start collecting real assets like stocks and properties that pay you back.
Lesson Four: The History of Taxes and the Power of Corporations
Rich Dad viewed Robin Hood as a villain, not a hero. Taxes were meant for the rich but became a middle-class burden. Corporations, however, offer a legitimate way to lessen tax loads. Understanding corporate structures gives the wealthy a tax advantage.
Lesson Five: The Rich Invent Money
Robert believes “our mind is our biggest asset.” With more financial knowledge, you spot opportunities others overlook. In the ’90s economic slump, Robert and his wife turned lemons into lemonade by creatively flipping properties. “Life’s always handing out golden opportunities,” Robert claims. It’s up to you to spot them and seize them.
Lesson Six: Work to Learn, Don’t Work for Money
Robert once told a journalist, “I’m a best-selling author, not a best-writing author.” The trick is to work to learn, not just for a paycheck. Gaining skills in areas like sales can unlock new doors to financial success.
Lesson Seven: Overcoming Obstacles
Even financially savvy folks hit roadblocks like fear, skepticism, laziness, and bad habits. The affluent handle fear by seeking victory, not just avoiding loss. They tackle skepticism by exploring opportunities, not dismissing them. They beat laziness by harnessing a bit of greed positively, and they cultivate winning habits by paying themselves first.
In a nutshell, Robert Kiyosaki’s “Rich Dad Poor Dad” offers timeless advice on financial intelligence and freedom. As he famously put it, “The rich don’t work for money; they make money work for them.”
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