9 Powerful Lessons From 'Rich Dad Poor Dad'
Even if you haven't read the book "Rich Dad, Poor Dad", you can find some valuable lessons about becoming rich here.
We all need financial education
Most students graduate with zero financial skills. They learn how to make some money, but they have no idea how to make more money from their money, or how to spend the money. So everyone should have economic education to properly manage the money they earn.
The differences between the rich and the poor
First - Needs
Second - Investments
Third - Desires
First - Desires
Second - Needs
Third - Investments
This is the main reason why the rich make their money work for them, while the poor and middle class work every day to earn their money.
Accept that you are to blame and it is not your family that caused you to be poor. When you realize that the problem is you, then everything will change. How can you change yourself?
Read every day
Quit a habit
Grow your skills further
Conquer your fears
Get out of your comfort zone
Focus on your 'to do' list
Write a letter to your future self
Learn from inspiring people
Use the balance sheet to count money
Balance is the most important thing if you are going to be rich.
Assets: Cash coming into your pocket
Liabilities: Cash coming out of your pocket
The rich are the ones who secure the assets, while the poor are the ones who only have the liabilities.
How taxes are in favor of the rich
Historically, taxes have been made to punish and burden the middle class and the poor. The poor are taxed before they spend, while the rich only after they spend.
What are the four pillars to become rich?
Balance Sheet: Ability to read and understand financial documents.
Investing: The Science of Making Money Make Money for You. This is combined with creativity and formulas.
Understanding the market: Demand - Supply.
To understand the laws and taxation and to know how to avoid them.
Do not confuse your profession with your business
You work first for your boss, then for the state through taxes and finally for the bank that keeps its percentages from the loan. But forget about growing your assets. You can continue to work every day, but meanwhile you have to translate this money into assets.
If you put even $1 in a savings account, never take it out for anything other than investing.
Where to invest?
In the stock markets
In real estate for rent
In Treasury Bonds
If you are going to add an extra liability, first buy an asset and make this asset give you money to pay off this liability later.
Your mind is the greatest asset you have
100 years ago industry was wealth. Today, information is wealth.
Train your mind:
How to find opportunities
How to use levers
How to organize intelligent people around you
You have to take the risk, calculate it and then decide.
Be a generalist rather than a specialist
Specialization is to get only one salary. It doesn't make you rich. Work to learn, don't work to earn.
The best thing is to find jobs that train you in communication, sales and marketing. These skills make you rich.