Rich Dad Poor Dad is a book that was written by Sharon Lechter and Robert Kiyosaki. It’s designed to offer you information about financial independence, financial education and how you can accumulate money by investing. It shows how you can invest, what you should invest in and how you can create financial intelligence in the right manner.
Understanding the way you can earn money
The book is designed to help you figure out your financial approach through parables. The idea here is that you will notice what influence the author had as a child. He had his own father which is the poor dad in this equation. And then he also compares the rich dad, which is the father of a friend. The poor dad was working at a steady job for a living. But the rich one had his own businesses. While he obviously had to deal with lots of risks, he also had plenty of rewards and that was one of the most important aspects to consider in these situations.
During the entire book, you will find yourself learning 6 very important lessons that will help you shape your financial future. You get to see how you should start earning revenue, why you need to invest, what type of investments make sense and so on. Identifying all of that and approaching this with the utmost confidence is what really matters.
Rich people don’t work for money
What rich people do is they work in order to accumulate information and boost their knowledge. They focus on innovation and on learning things that will eventually allow them to earn more and more. Great ideas are always more valuable than money. You can use them to bring in something creative, unseen and that on its own will help generate a lot of money in the long run.
However, most rich people tend to be frugal. They don’t equate richness with material things, although some of them do. But being rich doesn’t mean driving a fancy car and owning million-dollar items. Instead, being rich is all about pursuing greatness and innovation. If you learn how to pursue these things, the money will come automatically and then you can figure out what to do with them on your own.
Understanding why you need to invest
Rich Dad Poor Dad also covers the idea of financial literacy. It shows that you should be able to invest as much money as possible while also covering your daily needs. The most important aspect related to investing is that every dollar counts. A good idea is to generate passive income and constantly try to push things to the next level in a very comprehensive manner. Wealth will come when you own lots of assets.
But wealth isn’t necessarily focused on real-life items. Instead, it also covers intellectual properties and copyrights. You can have lots of copyrights that people pay for just to use them once or twice, and that can be great wealth in the right hands. Simply put, you can invest in a variety of stuff, but you need to be a smart investor to avoid any challenges and issues that can sometimes arise.
Minding your own business
This is also a chapter where you get to learn about investment. You need to understand your financial situation and studying how to improve it. Paying off debts and then investing when you can generate revenue is simple and very helpful. This business idea can really do wonders and it will provide you with some rewarding results every time because of it. You need to make sure that you focus on your company’s growth and don’t ignore something that’s extremely important. If you do that right, nothing will be able to stand in your way.
Corporations and Taxes
Rich Dad Poor Dad also covers the idea of dealing with taxes and corporations. Filing for and dealing with taxes is very important, as your company can easily deal with debt very quickly. Paying off all kinds of debt including taxes is super important and it will become a very important aspect to think about regardless of the situation.
Also, if you have a corporation, you need to see what kind of investments actually make a lot of sense. Even if you have money, you still need to know how to use it adequately so it can bring in even more money.
Don’t sit on a large amount of money, invest it
The poor dad was sitting on money and that was a mistake. He was spending it instead of investing. You need to learn from this mistake. If you have money, they won’t generate any more unless you invest them wisely. Granted, investing has its fair share of challenges, but understanding how and when to invest can really make all the difference.
Always work to learn
A lot of people work just to make money. That’s the wrong mindset, according to Rich Dad Poor Dad. The best thing you can do is work to learn and constantly improve yourself. Not only will this be a better workplace, but it will give you that winner mindset that you really need. It doesn’t mean it will be an easy thing to do, however, you have to eliminate all the challenges and pursue the right ideas in the long term. Is it going to be a challenge? Absolutely, but if you work hard to achieve that, nothing will ever stand in your way.
Conclusion
Rich Dad Poor Dad is an amazing book with lots of rules and tips on how you can handle your finances and implement growth. It focuses a lot on investing, and it also shows that you can make mistakes. But at the end of the day, it’s a very comprehensive, amazing book with lots of stuff you can learn from it. You get to see the true power of finances and how you can use them to bring wealth into your life!
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