According to this book, money isn't your greatest asset. ‘The single most powerful asset we all have is our mind. If it is trained well, it can create enormous wealth” says Kiyosaki.He believes that if people are prepared to be flexible, have an open mind, and learn, they tend to get richer.You see… you could be highly educated and successful in their profession, but you could still be financially illiterate.So start your financial education or continue it by reading books and listening to podcasts like this but be careful who you listen to – choose your mentors wisely.

Financial education is your greatest asset

Learn to manage risk

Pay yourself first

So what’s his secret to financial independence? Well, let’s look at 10 lessons

10 key lessons to learn from Rich Dad Poor Dad by Robert Kiyosak

This is one of the basic concepts addressed in the book Rich Dad Poor Dad. Most people work to survive. If they have money problems, they ride them out or ask for a raise.Unfortunately, this is the vicious cycle most middle and working-class people fall into. On the other hand, the rich don’t work for their money. They buy assets that generate income.He explains that the rich work on building their assets, and every dollar in their asset column is their hard-working employee. The problem is, if your money isn’t working for you and making money while you’re asleep, you’ll never be rich.

The rich make their money work for them  

An asset is something that puts money in your pocket and a liability is something that takes money out of your pocket," Kiyosaki explains in his book.He says that rich people acquire assets (shares and property investments) and poor people add liabilities (commitments and obligations).Many people buy luxuries first, like big cars, heavy bikes, or big houses to live in. But the rich buy assets first and the income from their assets buy luxuries. In short, the poor or middle class buy luxuries first, and the rich buy luxuries last. It’s called delayed gratification.

Know the difference between assets and liabilities

Find a job where you can learn life skills.He stresses that learning can make you much more knowledgeable and can provide you with unique skills to improve your professional situation.Learn something about accounting, investing, markets, the law, sales, marketing, leadership, writing, speaking, and negotiating.Kiyosaki tells us life skills are equally important for financial success and are not taught in school. You should acquire these life skills to help yourself on the path to financial freedom. An investment in knowledge pays the best interest

Work to Acquire Life Skills, Not for Money:

Interestingly, just like the poor, the rich also have a fear of losing money, but the main difference between the rich and the poor is how they manage fear.For many people, the fear of losing money is much more terrifying than the joy of having money. Playing not to lose money means you will never make money. “Winning means being unafraid to lose.” Kiyosaki teaches us not to be afraid of losing and to be bold enough to admit and learn from our failures.The greatest secret of winners is that failure inspires winning; thus, they’re not afraid of losing.

Failure inspires winners and defeats losers

Do not let fear or the opinions of the general public or the media dictate your actions.You see…most people’s lives are controlled by the two emotions of fear and greed.Fear keeps people in this trap of working hard, earning money, working hard, earning money, and hoping that it will reduce their fear. They’re scared of investing or taking a leap of faith and opening up a business.That’s why it’s important to have a plan, either a Strategic Property Investment Plan for your investments, or a Business Plan for your business. having a plan help you not be swayed by the emotions of fear and greed

Don’t be controlled by emotions

Why do you want to earn more passive income?”For many people, it’s because they don’t want to work all their life. They want to have control over how they spend their time. Others want to support their children financially, yet others want to give to the community or charity. Write down your “why” because it will keep you motivated. If you don’t have a reason, then it is difficult to stay on the path to wealth. Remember…it’s not your fault if you were born poor, but it will be your fault if you die poor.

Find a reason

Kiyosaki also encourages his readers to start a business. He says, if you have a job, keep your job and start a part-time business and work it. Never leave your job until you build your own business. Don’t struggle all of your life for someone else. Start your own business and grow it.

Mind your own business

In Rich Dad Poor Dad, the #1 Personal Finance book of all time, Robert Kiyosaki shares the story of his two dad: his real father, whom he calls his poor dad,’ and the father of his best friend, the man who became his mentor and his rich dad.’ One man was well educated and an employee all his life, the other’s education was street smarts” over traditional classroom education and he took the path of entrepreneurship a road that led him to become one of the wealthiest men in Hawaii. Robert’s poor dad struggled financially all his life, and these two dads these very different points of view of money, investing, and employment shaped Robert’s thinking about money.Robert has challenged and changed the way tens of millions of people, around the world, think about money and investing and he has become a global advocate for financial education and the path to financial freedom. Rich Dad Poor Dad (and the Rich Dad series it spawned) has sold over 36 million copies in English and translated editions around the world.Rich Dad Poor Dad will explode the myth that you need to earn a high income to become rich challenge the belief that your house is an asset show parents why they can’t rely on the school system to teach their kidsabout money define, once and for all, an asset and a liability explain the difference between good debt and bad debt teach you to see the world of money from different perspectives discuss the shift in mindset that can put you on the road to financial freedom

books

Books

Although we have been successful in our careers, they have not turned out quite as we expected. We both have changed positions several times-for all the right reasons-but there are no pension plans vesting on our behalf. Our retirement funds are growing only through our individual contributions. Michael and I have a wonderful marriage with three great children. As I write this, two are in college and one is just beginning high school. We have spent a fortune making sure our children have received the best education available. One day in 1996, one of my children came home disillusioned with school. He was bored and tired of studying. “Why should I put time into studying subjects I will never use in real life?” he protested. Without thinking, I responded, “Because if you don't get good grades, you won't get into college.” “Regardless of whether I go to college,” he replied, “I'm going to be rich.”

Kiyosaki is best known for his book Rich Dad, Poor Dad, the #1 New York Times bestseller. Kiyosaki followed with Rich Dad's CASHFLOW Quadrant and Rich Dad's Guide to Investing.

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Exercises - pt 2.1

Kill the fear of success