One of my friends recommended this book to me, and I was initially skeptical about the idea of reading anything about personal finance. Honestly, I was hardly interested with books about financial management because I always thought they were either boring or too theoretical. However, since my friend had a great taste in books, I trusted her and decided to give this book a try - and I had no regrets reading it.
As I read chapter after chapter of this book, I became more enlightened about the true concept of wealth and how to pursue financial security. So, let me share with you these 5 things I learned from Rich Dad, Poor Dad, and why I consider this book as one of the best I have read, so far.
1. Your income does not define financial security.
I always had the notion that high-paying jobs serve as one's ticket to a luxurious life. In fact, I used to envy my friends who were lawyers, doctors, bank managers, and architects. They live in huge houses, own more than 2 cars, and their kids study in prestigious schools. However, my bubbles burst when I learned that they, too, struggle with paying off debts - and I thought I was the only one! After reading Kiyosaki's book, I learned that it's not your salary that can have a life-changing impact on your future, but it's how you use the resources you have that can make a huge difference.
2. Start saving your money instead of spending them on useless things.
I have to admit - I used to be a shopaholic before Kiyosaki's words helped me overcome that financially debilitating habit. I was always fond of buying branded clothes, shoes, bags and even underwear. Unfortunately, my spending habits have gone crazy so I made a conscious effort to restrain my addiction to shopping and paid off my bills just to start a clean slate. Believe me, it was one of the most liberating things I have ever done in my entire adult life.
3. You can never be too old or too young to start investing.
I had the notion that only people who are 30-something should seriously think about investing. But then again, why not start young, so you'll have better chances of basking in a comfortable life decades before you reach retirement? Whether you're a teen or a yuppie who's just receiving your first paycheck, investing a portion of your savings is a practical move. Just make sure you choose a profitable place to invest your money instead of acting on impulse.
4. Learn from the pros.
Kiyosaki learned so much from his close mentor, the rich businessman who knew right from the start how to put his resources into good use. The truth is, that's just what we need - a guide who can help us attain financial security by simply following his or her steps. So, if you find yourself in a tight situation, consult a financial expert who can lead you to the right path.
5. Other than having good education, financial literacy can have a massive impact on your life.
Financial literacy is all about knowing how to manage your resources and growing them. For instance, you should start accumulating assets or properties that generate income until you can have more to cover your needs - and perhaps have a few more left over to further increase your assets. Thus, rich people get more from high returns on their investments instead of being fixated on earning a higher salary.
Rich Dad, Poor Dad talks about important lessons on finance, which he has learned from his two mentors - his biological father and a close friend whom he looked up to for financial advice and inspiration on wealth creation. Although his father attained a high level of education and worked as a reputable government official, he often found himself worried about settling his expenses. On the other hand, his mentor owned a business that gave him a more comfortable life - and to think that his level of education was only up to 8th grade.
Thus, being rich is not all about getting a high position in your job or earning a high salary. The secret to being wealthy is having more assets and making these work for you to cover all your needs.
