Hard truths and takeaways from Rich Dad Poor Dad by Robert T. Kiyosaki
Rich gets richer and poor gets poorer. Why?
This week I completed the bestseller “Rich Dad Poor Dad” written by Robert T. Kiyosaki. During the read there were multiple paras and statements that resonated with me. From all those lines, following the top ones.
These below points are not just random good looking motivating statements. During my education and my career I had experiences such as no self control on expenses, heavily dependent on salary, didn’t save, started investing very late in life, and much more, and that’s why I could relate to them.
Obviously there’s more in the book, and for that you have to read it. At the end of this article hopefully you might be inspired to read the book.
- The rich don’t work for money. As long as a person works for money, he will pay taxes.
2. Sadly, money is not taught in schools. Schools focus on scholastic and professional skills, but not on financial skills.
3. Taxes punish those who produce and reward those who don’t produce.
4. There is a difference between being poor and being broke. Broke is temporary. Poor is eternal.
5. The word emotion stands for energy in motion. When a person says, ‘I need to find a job’, it’s most likely an emotion doing the thinking. Fear of not having money generates that thought.
6. Never forget that fear and desire can lead you into life’s biggest trap if you’re not aware of them controlling your thinking. To spend your life living in fear, never exploring your dreams, is cruel. To work hard for money, thinking that it will buy you things that will make you happy is cruel. To wake up in the middle of the night terrified about paying bills is a horrible way to live. To live a life dictated by the size of a paycheck is not really living a life. Thinking that a job makes you secure is lying to yourself. That’s cruel, and that’s a trap. Don’t let money run your life.
7. The illiterate of the 21st century will not be those who cannot read and write, but those who cannot learn, unlearn, and relearn.
8. It is said that the fear of public speaking is a fear greater than death for most people. According to psychiatrists, the fear of public speaking is caused by the fear of ostracism, the fear of standing out, the fear of criticism, the fear of ridicule, and the fear of being an outcast. The fear of being different prevents most people from seeking new ways to solve their problem.
9. One of the main reasons the new worth is not accurate is simply because, the moment you begin selling your assets, you are taxed for your gains. Once a dollar goes into your asset column, it becomes your employee. The best thing about money is that it works 24 hours a day and can work for generations.
10. Employees earn and get taxed, and they try to live on what is left. A corporation earns, spends everything it can, and is taxed on anything that is left. It’s one of the biggest legal tax loopholes that the rich use.
11. “I can’t do that”. This statement should be “I don’t know how to do that-yet.”
12. 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.
13. Job is an acronym for ‘Just Over Broke’. Another horrible management theory — Workers work hard enough to not be fired, and owners pay just enough so that workers won’t quit.
14. The most important specialized skills are sales and marketing. The ability to sell-to communicate to another human being, be it a customer, employee, boss, spouse or child-is the base skill of personal success. Communication skills such as writing, speaking, and negotiating are crucial to a life of success.
15. Texans (Texas, USA) have a saying, “If you’re going to go broke, go big”. You don’t want to admit you went broke over a duplex.
16. Failure inspires winners. Failure defeats losers.
17. “I can’t afford it” shuts down the brain. “How can I afford it?” opens up possibilities, excitement, and dreams.
18. Without the little greed, the desire to have something better, progress is not made. So whenever you find yourself avoiding something you know you should be doing, then the only thing to ask yourself is, “What’s in it for me?” Be a little greedy. Its the best cure for laziness.
19. A reason or a purpose is a combination of “wants” and “don’t wants”.
20. Many people only manage people they feel smarter than and they have power over. Many middle managers remain middle managers, failing to get promoted, because they know how to work with people below them, but not with people above them. The real skill is to manage and reward the people who are smarter than you in some technical area. That is why companies have a board of directors.
21. Shop for bargains in all markets. Consumers will always be poor. When the supermarket has a sale, say on toilet paper, the consumer runs in and stocks up. But when the housing or stock market has a sale, most often called a crash or correction, the same consumer often runs away from it.
Congratulations on making it to the end. Do share the story and Keep Learning.
Let me know in comments section which point you liked the most 🙂
Disclaimer: The words and statements are taken from the book Rich Dad Poor Dad by Robert T.Kiyosaki. The article is not sponsored. :)
