Rich Dad Poor Dad is a very popular book by Robert Kiyosaki and Sharon Lechter that got published in 1997. The book has gained immense popularity among readers and has successfully sold more than 58 million copies. The book encourages earning money through passive income than being a salaried employee with a 9 to 5 job and limited income.
The story of the Book
The main fact of the book revolves around the two fathers of Robert Kiyosaki. One of them was highly educated having a PhD degree who was his biological father but, suffered financially. Another dad here is referred to his friend’s father who was a school dropout but, was making a good amount of money.
In the entire book, Kiyosaki narrates about the six financial lessons that he got from his rich father breaking the limited concept of earning money. For the better analysis of this book, you can visit journalreview.org.
Financial lessons provided by the book
1. The Rich don’t work for Money
The first lesson provided by the book is- Rich people work hard to increase their knowledge, experience, learn new things which further help them to generate money. The rich dad here wants to state that poor and mediocre people work day and night just to pay their bills and expenses and when their income increases, they use it to fulfill their lavish desires and again wait for the next salary. However, rich people create ways to generate money not only from their hard work but also for times when they don’t work. They don’t wait for the next pay or appraisal.
2. Why teach Financial Literacy
In the second lesson, the rich dad states that all schools, colleges, and universities create educated employees whose aim is to work and earn money. However, they do not provide the financial knowledge of how to make that money, how to keep its continuous flow, how to spend it or how to utilize it to create more money. The world is more focussed on creating employees while the focus should be to create employers.
3. Mind your own business
The third lesson is all about making money from your assets. The rich dad here has encouraged individuals to concentrate on their business and analyze how they can use the real-time assets like stocks, bonds, mutual funds, notes, property royalties, real-estate having financial flow etc. to generate money. People should work for themselves to make their profits and not for someone else and waiting for a monthly salary only to have nothing at the end of life.
4. The History of taxes and Power of Corporation
In the fourth lesson, the rich days states how general people think government oriented taxes are going to benefit them and affect the rich while ultimately they are the ones who suffer. It is only because, rich people don’t blindly work for money, rather they acquire in-depth knowledge of account, investments, financial market, financial laws and hence about the tax system to save themselves from being affected.
5. The rich invest money
The fifth lesson is all about financial education that shows how rich people work hard to gain financial literacy for creating opportunities. General people, on the other hand, work hard and if they don’t succeed they put the blame on luck and move on. They are afraid of taking risks, and that’s why they are restricted from the luxuries of life. Rich people are never afraid to take risks and utilize every opportunity to earn money only due to their high financial literacy level.
6. Work to learn Don’t work for money
General people learn academics to grab a good job to earn money. But rich people focus more on Financial skills, sales, and marketing strategies to grow a clear concept about them and then utilize the knowledge to earn money. The 6th lesson states that earning a million bucks is not enough; you should also understand how to manage it for achieving financial freedom.
The book teaches people being highly educated is not the ultimate way to make money but being financially educated is the way to create unlimited money.