Ask any wealthy or successful businessperson what books they'd recommend and you're guaranteed to hear the book Rich Dad Poor Dad on the list. With over 26 million copies sold, Rich Dad Poor Dad is easily one of the best selling books about wealth building.
Background Info
The Author, Robert Kiyosaki compares his biological father (Poor Dad) and the best friend of his childhood friend (Rich Dad). While his biological father was highly educated, his best friend’s dad was street smart but was much more successful. Watching both dads helped Kiyosaki learn key principles that would help him become successful in life.
Lessons Learned
Rich Dad Poor Dad is filled with life lessons that can help you become successful and financial independent. However, at the end of the day it is up to you to utilize these principles to truly achieve financial freedom. Some of the lessons include:
• Wealth should be measured as the number of days your income and assets can sustain you. Financial freedom only occurs when your monthly income from assets exceeds your monthly expenses.
• Being “rich” has nothing to do with how much you make, but rather how much of your income you keep. This entails both savings and investments.
• An asset is something that generates income for you. By this measure, your home is a liability, not an asset.
• Five personalities traits hold most people back in life. They are cynicism, fear, laziness, bad habits, and arrogance. These traits are normal but the truly successful people learn how to deal with them to overcome them.
• Financial literacy only comes after you have a basic understanding of accounting. This involves knowing the difference between assets and liabilities and being able to organize your finances efficiently.
• Owning businesses and investment is the only path to sustainable financial freedom.
• To achieve success, you need to have a reason for living greater than just making money. Otherwise, you will never truly reach your goals and find success.
• Focus on yourself instead of other people. Don’t pay any attention to what an employer does or what somebody else is doing. Focus on making your own personal strides to success and you’ll advance faster and put yourself one step closer to success.
Rich Dad Poor Dad Review Summary
Robert's book is the perfect example of how important it is to learn from other people’s mistakes and how important it is to be smart with your finances. Rich Dad Poor Dad is one of the best business books around. Put it on your list of books to read – Rich Dad Poor Dad has a lot to offer.
