“Rich dad poor dad” is one of the best financial education books written by the author Robert Kiyosaki and Sharon Lechter. In 1997, the company “Warner Business Books” published the book. Since then it has sold over 32 million copies and translated over 51 languages. It had also been on New York Times bestselling list for over six years. It was so popular not only among ordinary people but also most of the celebrities like Oprah Winfrey, Will Smith, and the Shark tank millionaires, Daymond John.
Even though the book sat on New York Times best-selling list for over six years, some of the book critics won’t like it. They said most of the concepts in the book include misleading or wrong financial advice and are full of non-sense things. However, from my point of view, the book actually includes some dangerous financial advice, if one doesn’t know how to use it well, but I think it is one of the best and my favorite financial educational books of all time. So now, I am going to reveal the most valuable lesson from my favorite book; “Rich dad poor dad”.
Three Key Lessons from “Rich Dad Poor Dad”
Lesson 01 – Assets and Liabilities
This is one of the best lessons I have learned from the book; “Rich dad poor dad”. In the book, the author Robert Kiyosaki well explains the definition of assets and liabilities. Furthermore, he also explained how rich people are getting rich from the assets meanwhile why the poor and the middle-class people are getting poor from liabilities. One of the wells said quotes from this book about assets and liabilities is that –
“An asset is something that puts money in my pocket. A Liabilities is something that takes money out of my pocket.”
Robert Kiyosaki | Rich dad poor dad
I need to explain with examples to understand well the definition of these two. If a man bought a brand new car for his personal use and an iPhone from his salary, both iPhone and car become liabilities. They will not generate money in the future. Furthermore, the value of these two devices are going down since the day one that he bought.
At the same time, another man bought some crypto and the stocks at the same price that the first man used. However, from time to time, the price of crypto can be bullish and so do the stocks. So the second man can gain money from the things he bought. So they become assets. Like the author; Robert Kiyosaki said the second man bought some things to puts money in his pocket, not the money that takes out of his pocket. He not only won’t lose his money from buying these two but also will gain more money from time to time.
Lesson 02 – Our Mind is the most powerful assets
In the book; “Rich dad poor dad” one of the most powerful assets is not a stock, not crypto, but it is our mind. Our mind is the only asset that can generate money the most. Like swimmers or basketball players, they need to train and practice well to their niche and their sports as hard as they can to win a competition. Our minds also need to train and practice. Without proper training or lack of education or knowledge, that can be a lot of risks and that is also one of the reasons that people are lack money.
Another interesting concept from the book; “Rich dad poor dad” is that; it is important why people should focus on Financial education. The author explains well how financial education was lacking throughout our formal school system. None of the teachers or the professors told us about finance, how to invest and how to make a financially free life. Furthermore, people consider that it is rude to ask about others’ people salaries or financial income. So we must fulfill our financial knowledge needs by ourselves.
Lesson 03 – Work for your future
In life, most people work just to earn money instead of their future. According to the “Rich dad poor dad”, people should work not for money but for learning purposes for their future. One should work to get the experience and to get the network with some successful people or talented people. The Chinese billionaire Jack Ma also said in your early age, work for others thus you can learn from them. I believe this lesson is something that every adult should be aware of.
In the book, the author explains each concept with a childhood life between his rich dad and the poor dad. He also compares the mindset between the rich and the poor. If his poor dad can’t afford some things, he said “I’ll never afford it”. But his rich dad always says “How can I afford it?” These two saying show what is the difference between the rich and the poor. And there are a lot of left-behinds concepts, mindsets, and stories from this book; “Rich dad poor dad”. Thus I highly suggest reading the original book. Then you will learn more about finance, the two differences between dad, and the importance of continuous learning.
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For English Learners who want to listen to the Burmese version here…
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