Let me guess: “Rich Dad Poor Dad” was the first book on finance you ever read. Okay, maybe I’m just projecting because it was mine. It’s a classic.
I didn’t exactly love to read at the time, but the pocket size and the catchy title won me over. In a little under 250 pages, Robert Kiyosaki told his story as a boy who had two dads – “poor dad” who was his real father, and “rich dad”, a mentor who helped him understand money and business.
He wove this story to expatiate Rich Dad’s nuggets to him and took every opportunity to show the relevance of each piece of Rich Dad’s advice in today’s context. Poor Dad had the spotlight for a while, but only for as long as he illustrated what you should not do if you wanted to build sustainable long-term wealth and bask in financial freedom.
There are a lot of nuggets from Rich Dad that everyone needs, honestly, but they can’t all fit into this post, so here are 6 that really stood out and I’m sure would resonate with you:
1. Make money work for you
The difference between the rich and the poor is that the rich see money as a tool to make more money, unlike the poor who see money as an opportunity to spend even more.
Money is a finite resource, so it should never be idle or you would run out. Deposit it in a high-interest savings plan. Get safe and secure investments that earn returns in your sleep. Put it to work.
2. Your mindset may just need a reset
A simple switch from thinking, “I can’t afford it” to “How can I afford it?” can change a lot for you financially. The latter opens your mind to the possibilities and challenges you to work towards them.
Wealthy people take risks. They’re brave enough to ask questions that challenge their minds. If you sit there saying “I can’t afford it” instead of making sure you can, then maybe you’re not really interested in having financial freedom.
3. Financial literacy is not optional
Whoever came up with the saying that “knowledge is power” must have seen this light. You can’t control what you don’t know. Financial literacy and intelligence would help you maintain your wealth. Make effort to stay abreast of information about money.
Read blogs, consume short-form content on social media, download guides, and subscribe to newsletters that teach you about money. Cowrywise ticks all these boxes, and we’re very intentional about helping you to make sense of money. Don’t be left out.
4. Work to learn, not just to earn
Wait, hear me out. I’m not in any way suggesting that you work for free, or for “exposure”, because these things don’t pay the bills. My point is, value varies in different scenarios.
Feel free to take up an unpaid internship to gain life skills and understudy how that industry works. The insight you may get from there could come in handy for you when you’re building your business. Knowledge sometimes has more potential value than money in the long run. Take such opportunities when they come.
5. Assets and liabilities make the difference
In Rich Dad Poor Dad, Kiyosaki explains that “an asset is something that puts money in your pocket and a liability is something that takes money out of it”. It’s that simple.
As we already discussed earlier, the rich focus on using their money to make more money (acquiring assets) and the poor use their money to incur liabilities. It’s important to note though, that an asset to one, can be a liability to another. There’s no one size fits all.
6. Your company matters
Not every day, “Hey, let’s go shop at that mall that just opened.” Sometimes, “Hey, gentle reminder to top up your savings plan”. Your company matters.
Surround yourself with people who have the right kind of mindset and are constantly looking for ways to solve problems with new ideas. Keep company with people who are headed where you are, so they don’t slow you down.
Phewww, I can keep going, because Rich Dad Poor Dad has more than just 6 gems on financial intelligence and freedom. It explains taxes, savings, mindset and money in a way you probably haven’t seen before. I highly recommend you read this short book, as it would open your mind to a lot of things rich people teach their children that poor people don’t (well, because they can’t).
Have you read Rich Dad Poor Dad? What is one thing that stood out for you? Let’s talk about it in the comments. If you’d be reading it, let me know too.
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Great post Cowrywise.
Really blessed