Rich Dad Poor Dad is counted among the legendary financial book that was written back in 1997 by Robert Kiyosaki. It speaks about how each individual can achieve financial freedom by strategic investment and not working under someone with a restricted salary. As per the moral summary by Robert Kiyosaki, for becoming rich, you don’t need high-end degrees, you just need to take risks, work hard and utilize every opportunity available to make money.
6 Important moral lessons from Rich Dad Poor Dad
In this book, Kiyosaki talks about his two dads- Rich Dad and Poor Dad in this book. Poor Dad is his own father who is a Ph.D. holder but financially poor. Rich Dad is his friend’s father who is a school dropout but, financially rich.
Influenced by his Rich Dad, Kiyosaki gives 6 important financial lessons:-
The Rich Don’t work for Money
General people do a 9 to 5 job just to make a living and fulfilling their fancy desires. Days when they don’t work, they don’t get paid. But, rich people are not afraid to cross their boundaries and take investment risks. They work hard day and night to analyze the various opportunities that can generate profitable cash flow. Instead of wasting their money on materialistic expenses like general people, they use it for making investments that are going to benefit them in the future.
2. Why teach financial literacy
According to Kiyosaki Financial literacy should be given to all individuals by school and universities along with academics. For-ex- Learning Accountancy, Cash flow system, financial tax system, clear concept on assets and liabilities and so on. He advised individuals here to keep their liabilities expenses minimum and invest in owning assets that can give them profits in the future. He has also said instead of spending money on luxury items one should utilize them in owning as many assets as possible.
Mind your own business
In this part, Kiyosaki has explained what kind of real-time assets can generate maximum profits. He has given major importance to assets like- investing in Stocks, bonds, mutual funds, real estates and properties from generating profitable cash flow. He also explained different ways to make passive money, strategic investment procedures and effective money management with its correct utilization. He advised people to invest money in these kinds of assets instead of working like a robot under someone with limited salary.
The history of taxes and the power of a corporation
Kiyosaki here has clearly stated how the same tax system works differently for the employed individuals’ and the business owners owning a corporation or organization. He has stated that the ones who own corporations pay taxes with the amount that is left after expenditure while the regularly employed individuals pay taxes first and then think of how much they can do with the residual money. He clearly states here how business owners stay rich using the tax system loopholes while the employed individuals end up giving half of their hard earned money to the tax system.
The Rich Invented money
Kiyosaki has encouraged individuals here not to suffer from self-doubt and be bold to take risks. General people step back from making financial investments in the fear of losing all money. Rich people analyze each investment opportunities, understand the risk factors and put their money where along with risk they can also have benefit. Rich people always make bold moves and create their own luck and opportunities.
Work to lean, don’t work for money