Lessons To Learn From Robert Kiyosaki: Robert Kiyosaki took the world by storm with one of the best-selling investment books of all time – Rich Dad, Poor Dad.
The NY Times Bestseller gave sound financial advice that is still valid today. We’re going to take you through some of the best tips and highlights from the genius investor’s books that continue to resonate with millions of people today.
“Money Is Not The Goal. Money has no value. The value comes from the dreams money helps achieve.” ~ Robert Kiyosaki
List of Lessons To Learn From Robert Kiyosaki
Let’s look at a few things we can take away from Rich Dad, Poor Dad’s author. Here is a List of Lessons To Learn From Robert Kiyosaki.
1. Mind Your Own Business
The thought or idea of even starting a business on your own is something that is still unnerving to most people. Whether in India or anywhere else, a vast majority of us have been taught from our schooling to strive for employment, rather than starting a business.
Minding your own business is shifting your focus from increasing just your personal income and instead of looking at building assets that make money. Assets tend to grow much faster than a salaried person’s income.
Some examples of these assets are – Real Estate AKA Land, Royalties, and bonds.
2. Make Money Work For You
All of us work for money. But the rich make their money work for them. Working for money takes away time from earning through a business.
The poor and middle class use their money to buy luxuries first, then they use the rest to save or invest. The rich pour a majority of their money into investments, businesses, assets, etc, and then they use the rest to buy luxuries.
3. Learn Financial Literacy
Every successful entrepreneur has used his circumstances to propel his venture to new heights. Financial literacy is something that schools had failed to teach every single ward unless they strived for a career as an accountant or fund manager.
Yet most people go by with almost little to no financial literacy their entire lives and stay broke.
Another important note regarding financial literacy that Kiyosaki mentions is that money doesn’t change the type of person you are, it merely amplifies it. A person who is financially illiterate but has millions of dollars is surely going to burn through it faster than he can ever make it back.
Financial literacy can definitely give you two things
- How to manage your own money and
- How to save taxes.
4. Increase your assets, not your income
A common misconception among the working class is that increased income means more wealth. What is overlooked is that when your salaried, fixed income increases, so do your tax burden. So while you’re earning more, you’re also paying higher taxes than ever before.
Assets in turn generate income automatically after a point in time, whereas your job requires you to be present throughout the year.
5. Reinvest The Profits You Make
Continuing on from the previous lesson, a rich investor always puts back profits into his business and assets. An additional inflow could make expansion quicker, revenues higher, and overall profitability significant.
6. Know Little About A Lot
“You want to know a little about a lot” – Rich Dad
In short – Be a generalist.
Specialists or experts are people who specialize in one skill set and continue to build their entire career span on that skill till they retire. This is especially true for lawyers, CPAs, doctors, engineers, and pilots.
Their only dependence on financial growth is a hike in pay or promotion which limits their overall potential to have more assets.
A generalist knows little about a lot of topics, which never limits his learning till his last day.
Also Check Out: Howard Marks’ Investing Strategies & Lessons
7. Overcome Your Obstacles
Great opportunities are not seen with your eyes. They are seen with your mind.
Most people don’t have physical limitations to be financially independent yet they suffer a mental block or have certain biases affixed in their minds when it comes to being independent and becoming rich.
Some of these obstacles in the discussion are
- Bad Habit Cycles
Besides this, Kiyosaki has provided more tips and lessons in his book “Rich Dad Poor Dad”. You can check his Youtube channel or read the book for more insight into the self-made millionaire. Let us know what you think about this article on “Lessons To Learn From Robert Kiyosaki.”
Have you already or will you give this book a read? Happy Reading! This might be an excellent time for investors to enter the market. However, investors with little knowledge can take courses on FinGrad to make the right investment strategy.
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