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Today I’m diving into one of the most famous personal finance books of all time – Rich Dad Poor Dad by Robert Kiyosaki. This book really helped change my perspective on money in so many ways over 25 years ago, but it is still just as relevant today as it was then. It’s not just a book about money, but about mindset and how two different approaches to gaining financial security can completely change how you live your life.
Lesson 1 – The Two Dads’ Mindsets – Robert grew up with two father figures: His Poor Dad – well-educated, hardworking, but always stuck in the cycle of working for money. AND… His Rich Dad – a friend’s father, who understood money, assets, and how to make money work for him. My personal experience is rather similar, interestingly, my dad is like Robert’s Poor Dad, he is well-educated, a hard worker, very good at his job and was always focused on trading his time for money in a job, which led him to work for the same company for over 40 years before transitioning to work on a self-employed basis consulting for former clients, which he still does today in his 70s! It, of course, served our family well, but the major cost was little time for himself and for his family. Which then led me to question this approach and find my Rich Dad in books, like Rich Dad Poor Dad and then while building my career in investment banking. Overall, the key takeaway from these two figures in Robert’s life was it’s not how much money you make. It’s how much money you keep, and most importantly, how hard that money works for you.
Lesson 2 – Assets vs. Liabilities – Rich Dad’s golden rule was simple: Assets put money in your pocket. Liabilities take money out. Most people mistake liabilities for assets – like buying an expensive car or even a big house that drains you in mortgage payments. Rich people focus on building assets: businesses, investments, real estate, stocks, and income-producing opportunities.
Lesson 3 – Don’t Work for Money, Make Money Work for You. Poor Dad said: ‘Go to school, get a good job, climb the ladder. Rich Dad said: Don’t just work for a paycheck. Learn how money works. That means developing financial education, spotting opportunities, and building income streams beyond your job. So that one day you can stop trading your time for money (meaning working in a job) and focus on having your money work for you and compound over time click here to read that post/watch that video on the magic power of compounding.
Lesson 4 – The Power of Financial Education. Schools teach us algebra and history, but they rarely teach how to invest, use debt wisely, or build wealth. Or even to be curious about learning about these topics. Rich Dad taught Robert about accounting, investing, markets, and entrepreneurship. The more you understand these skills, the more control you have over your financial destiny. Exactly why I started this channel, as I want to inspire others to want to learn about investing and provide a place where they can come to do that without hyperbole and other exaggerated claims. I think financial education is far more important today than it has ever been, with the uncertainty created by ever advancing AI and robotics the probability of anyone being able to do what my dad did and work for the same company for 40 years is near zero.
Lesson 5 – The Importance of Taking Risks. Poor Dad feared failure. Rich Dad embraced it. Kiyosaki says: Winners aren’t afraid of losing. Failure is part of the process. The rich take calculated risks. They invest, learn, and grow. The poor and middle class often play it safe and stay stuck. This is a truly powerful lesson. It takes time to learn and grow so I urge everyone to please start as early as you can. It has taken me over 25 years to truly develop my skills and confidence in investing.
Lesson 6 – Mindset Shift. The biggest lesson? It’s not your salary that makes you rich. It’s your mindset. Rich Dad asked: How can I afford this? Poor Dad said: I can’t afford this.
That tiny shift, from limitation to opportunity, changes…everything.
So in summary, the key lessons from Rich Dad Poor Dad are: Focus on assets, not liabilities. Learn how money works. Take risks and embrace mistakes. And above all, shift your mindset. That’s how you move from just working for money… to making money work for you.
Thanks for reading to the end! If you like this kind of information… then please consider bookmarking my website and subscribing to my YouTube channel as new posts and videos to come each week! And if you found this helpful, please share this post and video with someone who needs a financial mindset shift!
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