Self-help books can teach us many things about where we are in our lives and how we can move forward from places where we struggle. Rich dad, Poor dad was no different in passing on valuable lessons to eager money makers who were all looking for a bit of advice on making it big with a bit of money. The book went on to become a best-seller, and there is much reason why. Kiyosaki shared knowledge that he gained through experience and shared it in a book, selling millions worldwide. Here are eight valuable lessons that you can learn from his best selling book about attaining financial freedom:
- Train your thoughts
If you always think negatively about how you travel through life when it comes to money, you will never be free to explore any other options you might have had to make more money. Our minds are influential, and the constant thought of not doing it will lead to not doing it. Kiyosaki teaches you to focus on possibilities of working your way out of the “rat-race” mindset and working on an entrepreneurial scale of using what you have around you to invest in yourself. The example that he uses is his journey from working for his friend’s father for free to renting out old comic books for a profit.
- Look for experiences that make you smarter.
According to Kiyosaki, the rich find ways to become billionaires through passing opportunities that they take risks on. They never overthink their chances, only their investments, and because of these risks, they are always in situations where they can become more competent, gain more life skills and learn to communicate better.
He took a risk with his first investment, fetching him a mere 25 dollars a month, but although it wasn’t the business that made him a millionaire, he took the lessons he learned from it to become better and more focused with each new deal he made. Kiyosaki took the lessons he had learned from working for his friend’s father without any payment and started a small comic book rental business. From comic books that they found lying around while cleaning for the friend’s father, he managed to take in an 18 thousand dollar investment and start his initial company. Seeking mediocrity is the downfall that prevents people from taking calculated or impulsive risks that can help build an empire. Becoming more intelligent through your experiences will teach you to strategise your investments, setting your goals on a course to wealth. Your accomplishments should involve your financial goals at all times and should include the risks you take to get there.
- Improve your financial literacy
Kiyosaki believes that financial literacy is the most crucial part of helping anyone build strong foundations in business. Money powered by intelligence is how the everyday man can learn to solve his financial problems. He believes that your money is bound to disappear without the intelligence to manage your finances before you even have a chance to look at it. This valuable lesson displays so much truth in the thought that not planning will leave you spending your money frivolously. Not taking care to educate yourself on increasing the little you have will never lead you to have a lot. As he says in his book: “Intelligence solves problems and produces money. Money without financial intelligence is money soon gone.”
- Keep your mind focused on your wealth.
Kiyosaki says in his book that minding your own business and remaining focused on the goals you have for yourself is how you will become financially free. Trying to find legitimate methods to increase your wealth, seek out opportunities or pump money in businesses that are significant assets is how you can generate a steady income. Keeping your eye on your prize involves lots of focus, and you should be looking for more ways to increase the money you have, according to Kiyosaki.
- Understanding Tax The Corporation Way:
Kiyosaki explains the way that corporations pay their tax. They are allowed to spend their earnings before they get taxed, where the everyday man and woman get taxed on their income and are only allowed to pay when that is done. Your focus should be on increasing your understanding of how accounting works—learning about investing, turning a profit and how the legal system works. This is how you can engage in tax planning that makes sense. Savings that you can invest wisely to increase your wealth further will also be wise to think about.
According to Kiyosaki, hiring people more intelligent than you will increase your wealth through their ideas. Increasing what you know and familiarising yourself with different strategies will help broaden your mindset and open you up to other possibilities. It will always take an idea coming out of someone else’s mouth to sound like it is possible, so surround yourself with people who are constantly looking for new ways to solve old problems.
- Try and gain knowledge through skill.
Kiyosaki believes that when you chase money, you will inevitably lose it, so you should work to gain knowledge rather than riches. Life skills are how you will learn to communicate with other people effectively, and improved people skills will lead to understanding information that other people may have that could improve your investments.
- Stay in control
Separating your emotions from your everyday business life is how you can make executive decisions that won’t cost you financially. Keep personal feelings about the success of others to yourself, and try to keep your head buried in your hunger for success. There will always be lousy talk, fear and pessimism, but allowing these to take precedence in your plans will lead you to doubt yourself. Stay clear of any ill thinkers who try to convince you to do something safe. They will only lead you to take full precaution at all times, missing any opportunities that you could have invested in.
To conclude, the book Rich Dad, Poor dad summary is what you need to read if you want to make it big in your financial journey. You need to keep your mind focused on the end goal, educate yourself on money and surround yourself with people or situations that encourage you to strive for higher targets. Taking risks is part of learning, and as long as you can keep an open mind about the direction you want to take with your money, you will succeed by jumping in headfirst. If you want to learn more about making the most out of your finances, grab yourself a copy of Robert Kiyosaki’s award-winning book and take an in-depth look at how he changed his outlook on money to become one of the world’s most well-known billionaires.