The book Rich Dad Poor Dad of the American writer of Japanese descent, Robert Kiyosaki, who is an investor entrepreneur, lecturer, writer and motivator. He is the creator, majority shareholder and CEO of Cashflow Technologies, which is a corporation that owns the licenses of the rich father brand poor father. He is a man of great goals and dreams that he could not achieve, however, with constancy and eagerness to fight, he managed to get ahead and become a successful man, as he is known today.
In this book, the most successful, the author details the way in which a business can help you achieve what he calls financial freedom, explains very simply, what the rich teach their middle class children. The main idea of the text, is the one referred to financial freedom using examples with real estate investment, emphasizing becoming a business owner and, in turn, explains methods to protect themselves financially.
Rich father poor father is the book forced to acquire knowledge about personal finances, explains smart way to escape the vicious circle in which people work hard all their lives for others and despite that they do not get anything later. Here are some of the most important lessons in this book that could help you achieve financial freedom.
The rich do not work for money
It is one of Kiyosaki’s primary ideas, in reality the rich no longer work for money. The poor and those who make up the middle class work with the interest of obtaining money; instead, the rich make money work for them. He who works only to get money will never be rich, the rich make use of their creativity to create business models in which they make money work for them.
Financial education leads you to financial freedom
We see, then, that true financial freedom is achieved when the assets are so large that they grow by themselves and income goes above inflation and fixed and variable expenses are for living. The author emphasizes that the person’s greatest asset does not consist in the amount of business or assets he may have, but in the level of that person’s financial IQ. In such a way, that education is the greatest wealth to which the person should aspire, Robert Kiyosaki says so, money without financial intelligence is quickly lost. It means that the important thing is not the amount of money you earn, but the amount of money you can keep, and for that, you must develop the mental asset of financial intelligence.
Create your own business
Most people work a lifetime for other people, and at the end of the working life they have nothing, the ideal would be to work for ourselves. Kiyosaki indicates that the best business is one that does not require our presence, the characteristic thing is that you are the owner, but run by a third party. If you should work there, it is not your business then it is your job.
Poverty is mental
Robert emphasizes in his book that the most powerful asset we can count on is the mind, if it receives a good training, it is capable of generating wealth; on the contrary, an untrained mind can create poverty. That is, we all have the ability to create, undertake and take risks and not wait for the opportunity to get a job. We are in an increasingly competitive world, hence the importance of opening our minds to new ideas, projects and pursuing dreams.
Know the difference between an asset and a liability
The asset is the one that puts money in your account or in your pocket, instead, the liability is what makes you take the money from your pocket or from the account. We see then that the rich are always acquiring assets in securities or investments and instead the poor acquire liabilities, debts that are commitments and obligations. The lessons contained in the book rich father poor father, illustrate very clearly and intensely, the way the rich with their financial intelligence manage to make more and more money.
What do you think about this topic? Have you read the book Father Rico, Father Poor?
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