Rich Dad Poor Dad by Robert Kiyosaki is one of the most read books in personal finance, and for good reasons. This book challenges the traditional view on building wealth, becoming rich, and managing your money. After finishing the book, you emerge with an entirely different mindset of what you should be focusing on to get to where you want to be.
Here are 2 big lessons from the book. You can also check out this post for a more detailed chapter review on Rich Dad Poor Dad.
- Becoming Financially Literate
Kiyosaki highlights the importance of being financially literate. This means knowing what to do with the money that you do have and earn. Being able to develop solid financial literacy is the key that allows the rich to stay rich. Without going into as much detail as he does in the book, a large part of financial literacy is understanding what is an asset/liability and focusing on buying assets.
For example, many people who get their paycheck or a raise actually just end up spending more on liabilities (ie. buying a new car, new watch). Instead, Kiyosaki says you should be buying more assets that in itself generate income. An example would be in real estate where you have a property that brings in rental income every month or a blog that generates consistent traffic and revenue.
- Mind Your Own Business
The best way to understand this phrase is to say it out loud with the proper intonation. “Mind your own business”. Kiyosaki stresses this in that instead of spending your whole life helping someone mind their business and making them rich, you should mind your own. There are many ways you can go about this. You can start your own business or just focus on building your assets.