07/03/2024
5 Life Changing Lessons From best selling book âRICH DAD POOR DADâ
5 Life Changing Lessons From best selling book âRICH DAD POOR DADâ
Lesson 1.âPay Yourself Firstâ
Pay yourself firstâ is a golden statement of personal finance. It means when you receive your paycheck at the end of a month you should put about 10-20 percent of money into voluntary provident funds, banks, or any other saving tools before you spend on daily expenses, bill payments, paying debts, etc.
The advantage of paying yourself first out of your salary or paycheck is that you build adequate wealth and secure your future. It creates a shield against financial emergencies, such as car breakdown, financial crisis, or unexpected medical expenses. When people donât save money before spending they experience a lot of stress.
Lesson 2: âThe rich donât work for moneyâ
The rich donât work for money. What does it mean? It means the rich donât get paid for their hard work, but they are paid for their smart work. Okay, letâs understand this in a more precise manner.
You have seen many entertainers, singers, sports players today are income earners and most of them go broke after their performance days are over. They earn a lot but for a limited time. If youâre working for money you will become a high-income earner at best. That doesnât make you rich.
If youâre rich then you have an income of a million-dollar per year without doing any effort. Warren Buffet, the CEO of Berkshire Hathaway says, âIf you donât find a way to make money while you sleep, you will work until you dieâ. So, you need to create a system of passive income that can generate a huge amount of wealth and assets for making you a true rich.
Lesson 3: â Identify your assets and liabilitiesâ
According to Robert Kiyosaki, an asset is something that puts money in your pocket while a liability is something that takes away money from your pocket.
Most of us think that our house is an asset. Besides, our financial planner, real estate agent, and accountant all call our house an asset. But, In reality, our house is not an asset, itâs a liability.
If you live in a house, paid for or not, then it isnât an asset since it doesnât put money in your pocket, instead, it takes money out of your pocket in the form of a mortgage, utility payments, taxes, maintenance, and more. That is what liability is.
Lesson 4: âBuy luxury last, not firstâ
Poor and middle-class people ( including myself) tend to buy luxuries first immediately after receiving their paychecks. I have observed many of my friends rush to shopping malls to buy expensive clothes, new smartphones, and many other liabilities immediately after they get a salary.
Too many people spend money they havenât earned to buy things they donât want to impress people they donât like. ~Will Smith
Most of us buy unnecessary things just to impress other people. We are unaware that wealth is created by maximizing earnings as much as possible, saving those earnings wherever possible, and maximizing returns.
When we invest our savings intelligently and apply the laws of compounding within few years we see our desired wealth growth.
The wealthy mindset saves now and spends later.
The middle-class mindset spends now and saves later.
Lesson 5: " Read a Lot"
Just like eating a balanced diet every day keeps you healthy and fit, reading books keeps your mind sharp and makes you more skillful and knowledgeable. Successful people feed their minds every day by reading both fiction and nonfiction books. Besides, they solve many other kinds of brain games such as crossword puzzles and brain teasers.
The more you read and learn, the more you become wiser. Reading helps you to retain information and knowledge.
"I had a lot of dreams when I was a kid, and I think a great deal of that grew out of the fact that I had a chance to read a lot."
-Bill Gates
Are you ready to take control of your financial future? Look no further than "Rich Dad, Poor Dad"! This bestselling book by Robert Kiyosaki teaches valuable lessons about building wealth through investing in assets and achieving financial independence. It's a must-read for anyone looking to improve their financial situation. Don't miss out on this opportunity to learn from the expert himself. Click the link now to get your FREE audiobook of "Rich Dad, Poor Dad"! Start your journey to financial freedom today!
https://www.positivebrains.in/2022/11/5-life-changing-lessons-from-best.html
