28/07/2020
Rich Dad, Poor Dad can be broken down into 6 lessons.
#1: The Rich Don’t Work For Money
Always be on the lookout for possibilities to learn new things. Earn smart by placing yourself in the best position to leverage business opportunities.
#2: Why Teach Financial Literacy?
Formal education does not necessarily prepare you for real-life working situations and investment opportunities. Primarily, your teaching prepares you to enter the market with the mindset of an employee, and not that of an employer. In order to lift yourself above the average, and become a member of the elite, you need to understand financial basics; for example, the difference between assets & liabilities. Assets are titles or contracts that allow you to generate income, while your liabilities incur expenditure.
# 3: Mind Your Own Business
You might currently have stable employment, with a regular monthly income, but you need to save and build a diversified portfolio of assets that will generate income for you on their own into the future.
#4: The History of Taxes and the Power of Corporations
It’s important to understand the basic principles of business – including financial and legal principles. To this end, it is valuable to have some knowledge of accounting, law, and investment strategy.
#5: The Rich Invent Money
It’s important to have a keen eye & a sharp nose for investment opportunities. Explore value addition themes in business, understand risk assessment and be fearless when it comes to exploring new vistas. Fortis Fortuna Adiuvat – fortune favours the bold.
#6: Work to Learn – Don’t Work For Money
You need to keep improving your business management skills every day. Don’t specialize in one field of work to the point that you become deficient in others. Study, work hard to develop skills in management, effective communication, and marketing, among other key skills needed to excel in business.
The core message in the book is that you should aspire to save money from your earnings, invest wisely, and accumulate assets that can eventually replace the income you make from your paid employment.
Who doesn’t have dreams of living a worry-free, financially independent life?