Rich Dad Poor Dad has taught 32 million people about financial independence… including mine. I read the book so you don’t have to. The 10 biggest lessons that teach you how to become financially free:
1. Make money work for you. Broke people stay broke by spending all their money. Middle-class people stay middle class by saving all their money. Rich people stay rich by laboring all their money. If you work for money, you will run out of time to make enough money.
2. Think big. You are capable of doing things bigger than you. Admit it. Always chase the dreams that scare you. There is magic in thinking big. There is power in thinking big. Aim for the moon. If you miss, you still may hit a star.
3. Always think in terms of opportunities. The rich dad forbids his kids from saying: “I can’t afford it.” He tells them to say: “How can I afford it?” The main reason majority of the poor & middle class are fiscally conservative is they have no financial foundation.
4. Develop skills for success. You may be a solopreneur, but there comes a time where you need to step up the game. Everyone should learn these three main management skills to succeed: Management of cashflow. Management of systems. Management of people.
5. Your mind is your best asset. Your wealth is proportional to your ability to take risks. When it comes to money, the poor and middle class want to play it safe. But the rich play it differently. They develop their financial IQ and take more risks.
6. Teach yourself financial literacy. It’s not how much money you make. It’s how much money you keep. Money without financial literacy is no money. Making money and keeping money are two separate things. Don’t confuse the two.
7. The rich buy assets, not liabilities. An asset is anything that puts money into your pocket. A liability is anything that costs you money because it loses value over time. “The middle class buy liabilities they think are assets.”
8. Buy luxuries last, not first. If you want to buy something, you must first generate enough cash flow from your assets to cover these expenses. This minor detour with your money allows the assets to fund your lifestyle, not the time spent at your job.
9. Fear & self-doubt are your greatest barriers to success. The primary difference between the rich & the poor is how they manage fear. Poor dad avoids risks. This perspective can be costly over time. “Often in the real world, it’s not the smart who get ahead, but the bold”.
10. Learn from history & execute. Everything was once small. Everyone was once amateurs. Don’t be afraid to start small. You will go big. Believe it. You will never get to where you want to be by sitting on the sidelines. Start where you are to end up where you want to be.