Lessons From Rich Dad Poor Dad
- Schools train students to be employees not entrepreneurs or investors. There are more choices in life than just working a job.
- Financial literacy is rarely taught in school, instead they focus on reading, writing, and math.
- Working to learn new skills is more important than working to earn a paycheck. Choose a job that allows you to learn, gain experience, and build skills don’t just sell your time.
- Assets pay you but depreciating assets cost you.
- Only go into to debt for cash flowing assets, don’t go into debt for depreciating assets.
- Pay yourself first before you pay your bills. Savings is your most important first step in acquiring capital to invest with. Convert earned income into assets.
- A financial business plan is more important than a resume in your financial life.
- The poor and middle class look for a job, the wealthy create jobs.
- Being broke is temporary for someone with entrepreneurial skills while a poor mindset can be permanent.
- Your financial IQ is your courage, creativity, and financial knowledge that creates skills, assets, and wealth.
- The middle class focuses on school, specialization, job security and retiring with benefits which is not as safe a path as they believe in the modern world.
- Money emerges from good ideas executed well.
- Without a financial education it will be difficult to hold on to any money over the long-term.
- Business taxes are structured in reverse compared to employees. Businesses pay taxes on earnings after expenses, employees pay taxes directly on income before expenses.
- The poor and middle class focus on a paycheck while the rich focus on businesses and assets.
- Education is one of the greatest investments but only when it’s from the right source at the right price.
- A good employee is an asset on a business balance sheet.
- Customers are cash flowing assets on a business balance sheet.
- The greater your financial knowledge the better your chance of building wealth.
- The primary lesson of the book is to learn how to make money work for you instead of selling your time for money in a never ending rat race.
Best Rich Dad, Poor Dad Quotes
“The single most powerful asset we all have is our mind. If it is trained well, it can create enormous wealth in what seems to be an instant.” –
“In school we learn that mistakes are bad, and we are punished for making them. Yet, if you look at the way humans are designed to learn, we learn by making mistakes. We learn to walk by falling down. If we never fell down, we would never walk.” –
“The lack of money is the root of all evil.” –
“Workers work hard enough to not be fired, and owners pay just enough so that workers won’t quit.” –
“Most people fail to realize that in life, it’s not how much money you make, it’s how much money you keep.” –
“In the real world outside of academics, something more than just grades is required. I have heard it called “guts,” “chutzpah,” “balls,” “audacity,” “bravado,” “cunning,” “daring,” “tenacity” and “brilliance.” This factor, whatever it is labeled, ultimately decides one’s future much more than school grades.” –
“The poor and the middle class work for money. The rich have money work for them.” –
“I can’t afford it’ shut down your brain. it didn’t have to think anymore. besides, it also brings up sadness. a helplessness that leads to despondency and often depression. ‘How can I afford it?’ opened up the brain. forced it to think and search for answers. it also opens up possibilities, excitement and dreams and created a stronger mind and dynamic spirit.” –
“Rule #1: You must know the difference between an asset and a liability, and buy assets. If you want to be rich, this is all you need to know. It is rule number one. It is the only rule. This may sound absurdly simple, but most people have no idea how profound this rule is. 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, “ said rich dad.” –
“Wealth is a person’s ability to survive so many number of days forward — or, if I stopped working today, how long could I survive?” –
“They get up every day and go work for money, not taking the time to ask the question, ‘Is there another way?” –
“There is a difference between being poor and being broke. Broke is temporary. Poor is eternal.” –
Poor is more of a state of mind in temporary circumstances than a permanent condition.
