Rich Dad Poor Dad – Key Takeaways
1) "Broke is temporary, Poor is eternal":
Broke is just a brief state of not having money. But 'Poor' is a mentality that makes
a person choose to remain broke. Broke is like a decision that went wrong; Poor is
making that failure your destiny. Thus, it is more about the mindset than the
available resources.
2) Decisiveness:
The world moves fast and time waits for no one. Opportunities come and go for
sure. But they stay only for a very brief of time. One needs to be decisive enough
and make quick decisions to grab that shot while we can
3) When life gives you lemons, make lemonade:
Life is difficult, and it pushes us around. It is up to us how we perceive it. Some
will just give up and live a life afraid of taking any risks. Some will blame others
for their failures and issues and live an exhausting life. Only a few accept life for
what it is, learn from it, and move ahead. These few people become happiest of all.
4) Simulation learning teaches us the most:
If we do something in reality or stimulate the real experience, we understand it
better, which helps us learn and absorb most of it. Whereas, when we just read or
listen to something, we tend to forget it easily because it forms a passive learning
process. Thus, it is vital to undergo active learning where ever possible.
5) It is easier to change yourself than everyone else:
The most control we have over anything in this world is on ourselves. We can't
directly control anyone else. So, if we always state that someone else is at fault and
always complain in every scenario, it will mean that we need changes in that
someone we have no control over. Instead, we can find the solution to a problem
by analyzing and changing our thought processes.
6) Control your emotions to escape the trap of Rat race:
Our lives are generally controlled by the emotions of Fear and Greed. It is the fear
of not having money to fulfil our needs or to pay the bills that forces us to work for
money which is actually an illusion. Then once we have the money, we spend it
because of our greed and this cycle continues. We must learn to control these
emotions of Fear and Greed instead of them controlling our lives. This way we can
escape the trap and get on the path of becoming rich in true sense.
7) Adopt a Can-Do attitude:
When we say that we cannot afford something, we limit our thinking. We negate
any possible opportunity to grow because we believe that it is beyond our
capability. But when we ask “How can I afford it?”, we start to think about various
options and solutions there could be. And if not, we even try to create opportunities
on our own.
8) Be financially literate:
Our schools produce employees as they only teach us how to work for money.
They don’t teach us how to make money or how to keep it or how to make money
work for us. This type of learning is crucial in increasing wealth. We must
understand the difference between assets and liabilities and focus on buying assets
to attain financial freedom and eventually, independence.
9) Work to acquire skills, not for Money:
Like money, skills are also important. Not just getting certifications and
specializations, but actually learning new skills. Different jobs and shifting work
constantly may not pay well in terms in money, but it is the experience that counts.
And because of that experience, we learn new life skills as by product which help
us throughout.
10) Buy Assets and lower Liabilities:
An asset is something that puts money in our pocket while liability is something
that empties it. Assets create cash flow and revenue and wealth. Whereas liabilities
reduce them. Rich people always try to buy assets, earn on it and then reinvest to
acquire more assets thereby increasing their wealth. Whereas, middle class and
poor people stuck in the loop by only buying liabilities thinking that those are
assets.