“Rich Dad, Poor Dad” is a must-read personal finance book by Robert Kiyosaki. Personal finance books are excellent resources that offer an in-debt introduction to numerous finance topics.
But few personal finance books are as commercially successful as Rich Dad Poor Dad. The book is a smash hit and has sold millions of copies worldwide. If that’s not enough, the book has been translated into multiple languages.
So what exactly is the book, and what lessons can we take from it? Let’s dive in to find out.
Rich Dad Poor Dad Lessons – An Overview
The book looks at two cases- the successes and failures of his two fathers (his biological and his best friend’s father). Poor Dad is Kiyosaki’s father, while Rich Dad is Kiyosaki’s best friend’s dad.
The book’s most interesting points are the two fathers and how they are completely opposite in their approach to financial wealth.
For example, Kiyosaki’s father was highly educated but struggled to put his finances in order. Nevertheless, he believed in being a good student and finding a good job. These are overly positive attributes that most of us associate with financial success.
On the other hand, his friend’s father was less educated, as he was an eighth-grade dropout. However, he was rich. Unlike Kiyosaki’s father, his best friend’s father believed in financial education instead of traditional education. And here lies the important lesson from Rich Dad Poor Dad.
Kiyosaki writes the book so that we can take these lessons from it.
The book aims to educate readers on how to acquire and, most importantly, manage their wealth through storytelling. We have prepared a series of lessons from Rich Dad Poor Dad to help educate you and improve your financial literacy.
4 Rich Dad Poor Dad Lessons About Acquiring and Managing Wealth
Both fathers were highly influential in Kiyosaki’s upbringing. However, both fathers had different perspectives on wealth and how to acquire and manage it efficiently.
He used that to write a book that outlined the important lessons he had learned over his life. Here are the four Rich Dad Poor Dad lessons everyone must learn:
- Importance of Financial Education
- Power of Midset and Attitude for Financial Success
- Diversifying Your Income
- Building Long-Term Wealth
Let’s examine all four lessons in more detail.
Lesson One: Importance of Financial Education
No Rich Dad Poor Dad lesson is more important than the very first – financial education.
Kiyosaki writes and argues that the traditional education system does not adequately prepare young people for the financial world. He argues that schools and colleges don’t prepare you for financial success and that it is up to individuals to seek more knowledge and develop skills to help them build wealth. But most importantly, it’s up to the individual to grow their wealth.
Rich Dad Poor Dad’s learning topics include investing, entrepreneurship, and personal finance management.
Lesson Two: Power of Mindset and Attitude for Financial Success
The next lesson from Rich Dad Poor Dad is tied to each individual’s psyche. Namely, Rich Dad Poor Dad argues that individuals have a certain attitude toward financial success.
Some people use the power of mindset and attitude to acquire and manage their wealth. In this lesson, Kiyosaki emphasizes the importance of adopting a mindset. But not just any mindset; a wealth-building mindset.
With the right attitude and mindset, individuals can take control of their finances and secure their futures. Moreover, individuals with this mindset take a more proactive approach to seeking wealth opportunities. Kiyosaki argues that this wealth-building mindset will allow you to take calculated risks instead of following the traditional path to success by building a career and depending on a steady paycheck.
Lesson Three: Diversifying Your Income
Kiyosaki’s best friend’s father taught him a fundamental lesson on income diversification. Income diversification means you should never put all your eggs in one basket.
His biggest advice is to disregard the traditional form of income, as these forms prevent you from acquiring wealth. For clarity, these forms include salaries and wages.
Instead, Kiyosaki argues individuals must turn to alternative income streams, such as investments and perhaps even entrepreneurship. The reasoning for this Rich Dad Poor Dad lesson is that alternative incomes help mitigate financial risk.
Lesson Four: Building Long-Term Wealth
The final Rich Dad Poor Dad lesson prepares you for the future. Kiyosaki argues the importance of a long-term perspective when acquiring and managing wealth. He says short-term gains are risky and often fail to achieve the individual’s ultimate goal – long-term financial success.
Therefore, one of Kiyosaki’s advice is to avoid short-term gains and focus only on the long term. In his eyes, long-term success is crucial for acquiring, building, and managing wealth.
These Rich Dad Poor Dad lessons will help you better understand the world of finance. But the ultimate aim of these lessons is to think differently about the term wealth.
In a sense, Kiyosaki argues everyone should be like his best friend’s father. Although not a good student or very gifted, his focus on financial education ultimately made him a millionaire.
On the other hand, his father was a true boy scout. He followed the rules, finished college, and got a well-paying job. But that got him nowhere but stuck in the middle class.
The ultimate conclusion to our Rich Dad Poor Dad lessons is that individuals should adopt non-traditional ways to acquire, build, and manage wealth.
From financial education to adopting a wealth-building mindset, diversifying your income and keeping your eyes fixated on the long term will help you take control of your finances and be rich.