8 Ways How ‘Rich Dad, Poor Dad’ Turned My Life Around — And It Can Do the Same for You (2024)

FAQs

How rich dad, poor dad changed my life? ›

'Rich Dad, Poor Dad' was a catalyst. It didn't just influence my finances; it rippled through my life. It's like you step into a river, and the current gently carries you along, revealing new sights and experiences. I restructured my financial portfolio, diversified my investments, and even changed my career path.

Overall, Lesson 8 of Rich Dad Poor Dad teaches readers that financial education and continuous learning are essential for achieving financial success. It encourages readers to embrace risk and failure in order to grow and improve their financial situation.

Rule 1: The poor work for money. The rich put their money to work. Do you 'live to work, or work to live? ' This is one of the basic concepts 'Rich Dad, Poor Dad' sheds light on.

2. Get a financial education. The most important lesson from Rich Dad, Poor Dad is that financial literacy is crucial to financial success. He argues that school education fails in this regard and needs to effectively teach financial literacy, including the basics of financial management and wealth building.

Kiyosaki's “rich dad” taught him that the wealthy have a different mindset than most people. They do not see money as a scarce resource but rather as something that can be created through creativity and innovation.

The existence of Kiyosaki's "Rich Dad" remains unproven, and there is no documentation on Kiyosaki's alleged vast reserves of wealth earned before Rich Dad Poor Dad was published.

Rich Dad teaches that the rich acquire income-generating assets, while the poor and middle class accumulate liabilities that drain their wealth. Building passive income streams, such as rental income from real estate or dividends from investments, is a key strategy for achieving financial freedom.

The book encourages readers to build a legacy of financial security that can benefit future generations and contribute to philanthropic causes. "Rich Dad Poor Dad" offers invaluable insights into financial intelligence and provides a roadmap for achieving financial freedom.

Lesson 5: The Rich Invent Money

The fifth lesson in "Rich Dad Poor Dad" is that the rich invent money. This lesson emphasizes the importance of creativity and innovation in wealth-building.

Rich dad often said, “If you want to be rich, just find out what everyone else is doing and do exactly the opposite.” As you read this book, you will find out that most of the differences between the 10 percent of investors who make 90 percent of the money and the 90 percent that make only 10 percent of the money are ...

What is the rule 3 of Rich Dad Poor Dad? ›

Rule No. 3: Be Aware of Tax Liabilities and Focus More on Passive Income. Portfolio income, also known as capital gains, is one of the key conventional avenues for building wealth, but profits from these kinds of investments are taxable. This comes into play when you sell an asset for more than you bought it.

Rule 2: Financial literacy is necessary

By this time, Mike had taken over his dad's business and grown it exponentially. Both of us were able to reach where we were, thanks to Mike's dad (my Rich Dad) lessons in financial literacy.

Brief summary

Rich Dad, Poor Dad by Robert T. Kiyosaki is a personal finance book that emphasizes the importance of financial education, teaches how to make money work for you, and challenges traditional beliefs about money.

Rich Dad Poor Dad is a good book for beginners. It introduces a lot of concepts, views and rules that most people have never encountered before. And packages this into a story which makes it easy to understand.

The first lesson in the book says it all: The poor work for money and the rich make their money work for them. Even though the book is most popular among real estate investors, it does NOT teach you “HOW” to invest. Instead, it focuses on “WHY” you focus on assets that pay you regardless if you're working or not.

But children and young adults exposed suddenly to significant wealth can struggle with anxiety, depression, and a distorted sense of self-worth. There's also the fact that wealth, particularly when acquired or discovered abruptly, can change children's relationships with others, and their perceptions of themselves.

Poor dad said he couldn't invest because he had no money. Rich dad said “invest your time when you have no money.” In most circ*mstances, people have no time to invest.