The older we get, the harder it is to learn new things unless we seek them out ourselves. Rich Dad Poor Dad sets out to teach every day people like you and me how money works and how to make it work for you.
The key aspect of this book is to show you how a small change in your money mindset can really change your future. It’s one of the most popular money books from the last 20 years and it definitely lives up to the hype. Let’s discuss why I think it’s so great and the reason you should pick it up today!
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“Most people fail to realize that in life, it’s not how much money you make, it’s how much money you keep.”
The premise of the book is that Robert was taught about money from both his Rich Dad (his best friend’s father who only has an 8th-grade education and started his own business) and his Poor Dad (his biological father who is highly educated and works a government job).
Robert filled the book will all sorts of small anecdotes about his life and things he learned about money throughout his childhood. Through these stories, we learn a couple really important things.
- We need to change our view of “assets” and “liabilities”. People need to focus more on acquiring assets that will continue to make themselves more money, not things that are just going to cost them money in the long run.
- The poor work for money and the rich have money work for them.
- Financial education is super important to your personal financial development and in order to do smart things with your money you need to know how money works and what to do with it. He talks a lot about how we learn no real information about money in school like we should.
- Most people think that making more money is going to make sure they do better financially, but this book states “it’s not how much money you make, it’s how much money you keep”.
“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.”
If you’re finally fed up with the rat race and getting nowhere, this book is a great place for you to start. Changing your mindset on how money works can make you see it in an entirely different light. The information in Rich Dad Poor Dad wasn’t entirely groundbreaking but the way it’s presented is easily digestible for an everyday person who is just starting out
“workers work hard enough to not be fired, and owners pay just enough so that workers won’t quit.”
Personally, I think this book is super inspirational as a stepping off point for a better financial future. It definitely changed the way I look at money and the way I see assets and liabilities. I always just assumed every single thing you have was an asset but never really thought about how assets should be making you money.
I’m well aware that this book may not be the BEST personal finance books out there but it’s a great place to start if you’re just starting your journey!
Have you read Rich Dad Poor Dad? What did you think?