Pre-eminent Critical Financial Lessons from Rich Dad Poor Dad.

Why 'Rich Dad Poor Dad' is one of the finest financial book?

In an effort to challenge the financial myths in the contemporary world, the book 'Rich Dad Poor Dad' teaches us innumerable lessons and reminds us why we can't count on the school system to teach about money and the importance of this critical life skills. This is based partially on Kiyosaki's life who was offered the choice of contrasting points of view: one of a rich dad and one of a poor dad. The lessons are a mix of money as a concept, basic accounting, budget and investing. 

  With perspectives that often contradict conventional wisdom, personally, this book has changed the way I thought about money and made me realize that how increased financial intelligence can be used to solve many of life's common problems. I chose to share this knowledge and you choose to prepare them for the world that awaits.

A must-read book that aids to prevail financial freedom in life!

By Robert T. Kiyosaki

What I become competent in after reading  this book?

• Money is an illusion which creates a difference between being poor and being broke. Broke is temporary. Poor is eternal.
• Savers are losers; for the poor and middle class, saving money is a religion, financial salvation from poverty and protection from cruel world.
• Money is one form of power. But what is more powerful is financial education. Money comes and goes, but if you have the education on how money works, you gain power over it and can begin building wealth.
• The faster you can make a decision the more likely you'll be able to seize opportunities before someone else does.
• Life pushes all of us around. Some people give up and others fight. A few learn the lesson and move on. They welcome life pushing them around. To these few people, it means they need and want to learn something new. They learn and move on.
• If you're the kind of the person who has no guts, who just gives up when life pushes you, you'll live all your life playing it safe, doing right things, saving yourself for some event that never happens. Then you die a boring old man. Deep down you were terrified of taking risks. You really wanted to win, but the fear of losing was greater than the excitement of winning.
• If things must change, first you must change.
• The poor and middle class work for money. The rich have money work for them.
• Most people struggle financially because they do not know the difference between an asset and a liability: Rich people acquire assets. The poor and middle class acquire liabilities that they think are assets.
• An asset is something that puts money in my pocket whether I work or not. A liability is something that takes money out of my pocket.
• Once you understand the difference, concentrate your efforts on buying income generating assets and enjoy the tax benefits of generating income that doesn't come from a paycheck.
• Employees make their business owner or the shareholders rich, not themselves. By working harder, you simply increase the amount of taxes taken by the government.
• True learning takes energy, passion and a burning desire. Anger combines with love to create passion - a key component of learning.
• People think that more money will solve their problem and don't realize that it's their lack of financial education is the problem.
• The main cause of poverty or financial struggle is fear and ignorance, not the economy or the government or the rich. It's self inflicted fear and ignorance that keep people trapped.
• Learn to use your emotions to think, not to think with your emotions.
• What is missing in our school education system is financial aptitude; what you do with the money once you make it, how to keep it longer and make that money work hard for you.
• A person can be highly educated, professionally successful and still be illiterate when it comes to finances.
• The middle class get stuck in 'rat race' because they treat their home as an asset instead of investing in income producing assets like real estates, stocks, bonds and intellectual property.
• Make sure to acquire the types of assets you love because you will take better care of them and enjoy more learning about them.
• The secret of being financially secure : Mind your own business, spending life working for someone else's business is as identical as making them rich.
• An important distinction is that rich people buy luxuries last by the income generated from their assets while the poor and middle class tend to buy it first with their own sweat and children's inheritance to look rich but in reality they just get deeper in debt on credit.
• If you're willing to invest, the tax laws will work in your favor. If you want to just spend your money on liabilities and expenses, the tax law won't give you any breaks- likely makes you pay the most tax possible. (Higher income is the selfsame of feeding the government more.)
• As long as you keep trading up in value, you will not be taxed on the gains until you liquidate. People who don't take advantage of legal tax savings are missing notable opportunity to build their asset column.
• Being wealthy and being rich are different : Wealth is a person's ability to survive so many number of days forwards if they stopped working.
• Your mind is your biggest asset. Teach your mind to learn things and embrace change. If you cling to old ideas, you will be left behind.

-Neha Giri

Pic source : Brianna Bussell