Written in 1997, this classic personal finance book offers essential lessons on money management, investing, accounting, and budgeting. It's highly recommended for anyone looking to improve their financial literacy.
Which are the good lessons and good quotes from the book “ Rich dad Poor dad”?
1.Overview on the book “Rich dad Poor dad”
"Rich dad poor dad" is Robert's story of growing up with two father figures—his biological father, whom he calls his "poor dad," and the father of his best friend, his "rich dad." The book explores how both men influenced his views on money and investing.
This famous book not only provides money lessons but also helps readers change their mindset in relation to using and creating money in a life.
2.Quotes about money lessons from the book “ Rich dad poor dad”
2.1. The rich make their money for work
The poor and middle class often find themselves in a relentless cycle: waking up, going to work, paying bills, buying luxuries, and then repeating the process. They are driven by fear, lack of knowledge, and greed. In contrast, the rich frequently own businesses that don't require their constant presence. They are perpetual learners, they don't let emotions control them, and their lives are not dictated by their paychecks.
The rich choose smart work instead of following money
2.2.It not only stop how much money you make but also how much money you keep
Money amplifies the cash flow mindset you have. Therefore, understanding accounting is crucial. More importantly, you need to distinguish between assets and liabilities and focus on acquiring assets.
An asset is anything that puts money in your pocket. Examples include businesses that don't require your presence, real estate, stocks, bonds, notes, and royalties from intellectual property.
A liability, on the other hand, takes money out of your pocket. Examples include mortgages, car loans, credit card debt, and student loans.
2.3. Work in order to learn, not for money
Seek a job for the skills you will acquire, rather than the salary you will earn. The specific skills you should learn depend on your profession. For instance, a young writer might focus on developing skills in advertising, copywriting, sales, and public relations.
Beside making money, work to learn
2.4. The rich are not taxed
The rich create corporations as a means to limit their tax liability and reduce financial risk. Having a corporation involves leveraging financial intelligence in several key areas: accounting, investing, understanding markets, and understanding laws.
2.5. It’s not good for the smart who get ahead but the abroad
2.6. Pay attention to your asset column not your statement
To attain financial stability, focus on building a business centered on the asset column rather than solely relying on income. Remember, increased income often leads to increased challenges. Instead, prioritize mastering cash management.
3. Top 10 the good quotes from a book “ Rich dad poor dad”
1. In school we learn that mistakes are bad, and we are punished for making them. Yet, if you look at the way humans are designed to learn, we learn by making mistakes. We learn to walk by falling down. If we never fell down, we would never walk.
2. Winners are not afraid of losing. But losers are. Failure is part of the process of success. People who avoid failure also avoid success.
3. You’re only poor if you give up. The most important thing is that you did something. Most people only talk and dream of getting rich. You’ve done something.
4. If you’re the kind of person who has no guts, you just give up every time life pushes you. If you’re that kind of person, you’ll live all your life playing it safe, doing the right things, saving yourself for something that never happens. Then, you die a boring old man.
5. Emotions are what make us human. Make us real. The word 'emotion' stands for energy in motion. Be truthful about your emotions, and use your mind and emotions in your favor, not against yourself.
6. The single most powerful asset we all have is our mind. If it is trained well, it can create enormous wealth in what seems to be an instant.
7. To know a little about a lot.
8. We all have tremendous potential, and we all are blessed with gifts. Yet, the one thing that holds all of us back is some degree of self-doubt. It is not so much the lack of technical information that holds us back, but more the lack of self-confidence.
9. Learn to use your emotions to think, not think with your emotions.
10. An intelligent person hires people who are more intelligent than he is.
Conclusion
The best book “ Rich dad poor dad” brings to us useful and smart lessons in relation to money. Parallel, we learn more about the good quote in life and during making money.
