11 Money Lessons from Rich Dad Poor Dad by Robert Kiyosaki

Rich Dad Poor Dad by Robert Kiyosaki is regarded as one of the best personal finance books of all time.

It’s lessons from debt, to investing, are priceless, and in a time of economic struggle, the knowledge is more valuable than ever.

If you’ve never read the book, or want to be reminded of its content, you’re in the right place.

Here are 11 priceless lessons on personal finance from Rich Dad Poor Dad.

Mistakes Are Merely Lessons

Our education system penalises us for our mistakes.

As a result, we grow up trying to avoid making mistakes, and only doing things correctly.

But, your greatest lessons come from learning from your mistakes, and for the wealthy, failure is a powerful teacher.

There are no mistakes, only lessons, and once you realise that failure is the one necessary ingredient for financial success, you’ll begin to see improvements in all areas of your life.

The lesson here?

Go out and start failing at something.

Playing It Safe Keeps You Stuck

From that very first step you take as a baby, til the day you die, life is full of risks.

That’s precisely how you grow.

Unfortunately, your parents and school systems do all they can to minimise your exposure to risk.

Avoiding risks by playing it safe inhibits your growth and keeps you stuck.

Any form of success and making money takes risks, but the greatest loss comes from staying stuck.

Life rewards those who take risks. Instead of avoiding risks, educate yourself on those risks and learn from professionals.

It doesn’t negate the risks, it just means you take educated and well-calculated risks.

When you think about what life truly is, the biggest risk is actually not taking any risks at all.

Study The Money System

Money touches all aspects of your lives, and your relationships.

As a result, it is essential that you study all you can about money, like:

• How to get money working for you.

• The workings of the financial system.

There’s a reason as to why money and personal finance isn’t taught in schools.

It’s too valuable.

There needs to be some form of barrier to entry for people to unlock the power of financial literacy.

The more you learn about money, the better.

Work for Satisfaction, Not Money

Despite its importance in our lives, money should not be the primary source of motivation for why you work.

When work becomes merely a financial obligation, your life become miserable.

Instead, you should work for…

• Experience

• Fulfilment

• Job satisfaction

…and not solely for monetary gains.

You’ve heard the adage “do what you like and the money will come.”

This isn’t always true, but there is wisdom in doing something meaningful with your life.

Ultimately you’ll be financially rewarded for doing something well, and you do things well when they bring you satisfaction.

Mould your life around what makes you happy.

Not what pays the bills.

Change Your Language

Don’t say: “I can’t afford it”

Say: “how can I afford it?”

Your words hold great power, and the language you use is a huge indicator of your mindset.

Choose your words wisely and never underestimate their power to bring about desired outcomes.

Articulate thoughts in the form of an inquiry that is positive and constructive, like the example above.

Inquiry is a great way to look for solutions, but even these should be done in a positive way.

Instead of saying “I can’t do it”, say, “how can I do it?”

Instead of saying “I will fail”, say, “how do I succeed?”

Take on The Identity of Who You Want to Be

Taking on the identity of the person you want to be sounds like “fake it till you make it”, but it’s not.

If you want to feel wealthy, start thinking much like a person who is wealthy.

If you’ve never been wealthy, and don’t know anyone wealthy, you may feel like it would be a challenge to take on the identity of someone wealthy.

So, consider what it must feel like to be abundant, with all your debts paid off and living the life you desire.

Don’t become a fake person. Begin to mould into the person you want to be in the future.

Learn About Investing

You don’t get rich by saving, but by investing and making your money work for you.

But, where should you invest?

Quite often when people come into a little bit of money, they jump into some get rich quick scheme, or they become prey to people promising to double their wealth.

Why?

Financial illiteracy.

Learn all you can about investing before you actually start investing.

• The stock market

• Diversification

• Dollar cost averaging

The last thing you want to be doing is losing money because of your own incompetence.

Be Mindful of What You Consume

Just as “you are what you eat”, you become what you think and consume on a regular basis.

Fill your mind with positive and affirming thoughts.

Stay away from mind numbing TV shows and toxic social media communities

Read educational books that empower you.

Watch videos that feed your mind and curiosity.

Don’t watch videos that turn your brain into scrambled eggs.

What you feed your mind will either nourish you or stunt you.

Feed on what will nurture a growth mindset.

Surround Yourself With Winners

Never underestimate the influence of your friends and community on your behaviour.

No matter how strong you think you are, studies have shown this time and time again:

You are the sum of the five people that you spend the most time with.

If you want to make a long-term change in your mindset, surround yourself with people who possess a mindset and a life you admire.

It’ll definitely rub off on you.

Don’t feel bad for removing people from your life.

In cases like this you have to put yourself first.

Pay Yourself First

As the world’s most famous financier Warren Buffett quotes:

“Do not save what is left after spending, but spend what is left after saving.”

Most people are poor because they spend their income before they save.

For most, there is little left over at the end of the month to put towards your future in the form of savings or investments.

If you want to seriously change the trajectory of your finances, prioritise building disposable income.

You owe it to your future self to begin saving money to make their life that little bit easier.

Action Always Beats Inaction

No amount of:

• Self-help books

• Courses

• Seminars

• YouTube videos

Can make you wealthy.

Only you can, with what I call effective application.

You do this by taking immediate action.

Don’t wait for the right time, because the right time is right now.

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