Lessons From Rich Dad Poor Dad

November 7, 2023

Part 1:  The 6lessons

There are some key lessons about money to be learned from the book RichDad Poor Dad by Robert T. Kiyosaki and Sharon L. Lechter.  We at Launch Leadership Development believestrong personal money management skills are necessary for developing strongleadership and management skills in business.

This will be a three-part series, with today focusing on:

·        An introduction to Kiyosaki’s two dads

·        an overview of Kiyosaki’s six lessons he learned fromhis “rich” dad.

An Introduction to Kiyosaki’s two dads:

Kiyosaki’s real dad made good money working for the education system atthe state level but had debt all his life and lived and thought like mostpeople do about money: Get a good education, work hard, and get a securejob…hang on to it. This is who the author calls “poor dad”.

Kiyosaki’s best friend’s dad owned lots of area businesses andbecame very rich, leaving millions after his death to his family, charities,and church. This is who he called “rich dad”. This dad’s philosophy about moneydiffered greatly from his real dad’s and is the source for the following 6lessons.

Lesson 1 – The rich don’t work for money

Kiyosaki’s rich dad told him that the rich make money work forthem.  He explained what he called the“rat race” that most people fall into: get up, go to work, pay bills, get up,go to work, pay bills, get a raise, spend more, pay more bills as expensesrise, work harder for a promotion, get a raise, spend more, and on and on.  He said fear of losing their job, fear oftaking a risk when opportunities come, fear of change, all contribute to beingstuck in the rat race.

The way out of the rat race is to make your money work for you. Investin assets that make income for you. This could be real estate, or creativeproperty such as music or patents, stocks, something that will produce income.The rich dad said most people do not invest in true assets.  Look for my next article where I delve intowhat are true assets!

Lesson 2 – Why teach financial literacy?

Kiyosaki is very passionate about teaching people about how money worksand believes this lack of financial education is the reason so many are stuckin the rat race. He says people need to understand:

·        what a true asset is

·        how to read and understand numbers

·        not just rely on their job income.

Lesson 3 – Mind your own business

Kiyosaki says financial struggle is often the result of working allyour life for someone else. Kiyosaki suggests thinking about YOUR business:

·        There is a difference between your profession and yourbusiness

o  I may be a teacher, but my “business” is educating peopleno matter how I do it, whether it is writing books, speaking, etc.

·        Your business revolves around your asset column, not yourincome

o  He gives the example of Ray Kroc, founder of the McDonald’sfood chain saying his business was real estate, not hamburgers.

Lesson 4 – The history of taxes and the power ofcorporations

Kiyosaki gives a short history lesson on how taxes originated in theU.S. and how the rich learned to form corporations, which provides two taxadvantages:

·        the rates are less

·        corporations can pay expenses first, then are taxed onwhat’s left

Lesson 5 – The rich invent money

Kiyosaki believes lack of self-confidence and courage is what holdsmost people back from making a lot of money. He says: Often, it’s not the smart that get ahead, but the bold.

·        We learn by making mistakes, so don’t fear making mistakes

·        Luck and money are created. Most people have theopportunity of a lifetime come to them and don’t recognize it. Look around anduse your creativity!

Lesson 6 – Work to learn- don’t work for money

Kiyosaki advises that you want to know a little about a lot.

·        He says becoming specialized pigeon-holes you

·        Learn many things, and do many different jobs to learn

·        Know about sales and marketing because they will help youno matter what field you are in

He says the main management skills for success are:

o  Management of cash flow

o  Management of systems (including yourself and time withfamily)

o  Management of people

Lastly, he says We need to be generous and good teachers to others.

These are the Six Lessons Kiyosaki learned from his rich dad, howeverthere is more to learn from his book. Join me next time to understand what trueassets are and challenge yourself acquiring them!

-Jan Jones

Here is the audiobook: