Have you ever had that one book title that has always been in your reading list, but because of one thing or another, you weren't able to pick it up to read? For me, Rich Dad, Poor Dad is basically that. I was familiar with the title for the longest time but I was clueless on what it was about (I actually initially thought this was a book of fiction LOL). Finally when a colleague mentioned this again during one team building, I wrote a mental note to find a copy of it. Months later, after acquiring my Kindle, I added the title to my library. And finally, I'm happy to report that I have finished reading the book! 🤓🎊
After reading it, I now understand why it's always being included in the list of books one should read at least once / before you die. Basically, it's a guide towards financial freedom. How? By making your money work for you.
If you are one of the top percent of the world's population that doesn't need to work to earn money and make a living, well good for you. But for most of us ordinary people, we have to work regularly to earn wages to sustain our everyday expenses. This book reframed my thinking on how I approach money and handling my finances. The book has a lot of quotable quotes (and thanks to Kindle, I was able to highlight them 😉and here are some of them:
My Highlights From the Book 📑
- Instead of saying I can't afford it, ask: "How can I afford it?"
- Proper physical exercise = increases chances for health
Proper mental exercise = increases chances for wealth
- Taxes punish those who produce and reward those who don't produce.
- Being able to know when to make quick decisions is an important skill.
- The fear of losing was greater than the excitement of winning.
- The poor and the middle class work for money. The rich have money to work for them.
- Passion is anger and love combined. When it comes to money, most people want to play it safe and feel secure. So passion does not direct them. Fear does.
- Emotion stands for "energy in motion."
- Just be an observer, not a reactor, to your emotions.
- It's not how much money you make. It's how much money you keep.
- If you want to be rich, you need to be financially literate.
- An intelligent person hires people who are more intelligent than he is.
- When we were told to follow set procedures and not deviate from the rules, we could see how school discouraged creativity.
- Schools were designed to produce good employees, instead of employers.
- When I want a bigger house, I first buy assets that will generate the cash flow to pay for the house.
- Know the difference between an asset and a liability.
- The rich buy assets. The poor only have expenses.
- Financial struggle is often directly the result of people working all their lives for someone else. Many people will simply have nothing at the end of their working days to show for their efforts.
- The mistake in becoming what you study is that too many people forget to mind their own business. They spend their lives minding someone else's business and making that person rich.
- Start minding your own business. Keep your daytime job, but start buying real assets, not liabilities or personal effects that have no real value once you get them home.
- Often in the real world, it's not the smart who get ahead, but the bold.
- We all have tremendous potential, and we all are blessed with gifts. Yet the one thing that holds all of us back is some degree of self-doubt.
- The single most powerful asset we have is our mind. If it is trained well, it can create enormous wealth.
- It is not gambling if you know what you're doing. It is gambling if you're just throwing money into a deal and praying.
- Most people never win because they're more afraid of losing.
- Failure is part of the process of success. People who avoid failure also avoid success.
- Find an opportunity that everyone else missed.
- Job security meant everything to my educated dad. Learning meant everything to my rich dad.
- Workers work hard enough to not be fired, and owners pay enough so that workers won't quit.
- Life is much like going to the gym. The most painful part is deciding to go. Once you get past that, it's easy.
- If you hate risk and worry, start early.
- Failure inspires winners. Failure defeats losers.
- A savvy investor knows that the seemingly worst of times is actually the best of times to make money.
- Without a strong reason or purpose, anything in life is hard.
- If a person cannot master the power of self-discipline, it is best not to try to get rich.
- The easy road often becomes hard, and the hard road often becomes easy.
- If you want something, you first need to give. Whenever you feel short or in need of something, give what you want first and it will come back in buckets. That is true for money, a smile, love or friendship.
- Profits are made in the buying, not in the selling.
- The key to becoming wealthy is the ability to convert earned income into passive income or portfolio income as quickly as possible.
This is a long list, but there are lots more nuggets of wisdom inside the book. I was so inspired that I booked a paid seminar to learn more about real estate investing shortly after. Truly, being familiar with the tropes of real estate investing will allow me to make more informed decisions moving forward.
This book was a great read. This is one of those books wherein after finishing, you will emerge out of it with a changed point of view of the world. It deserves all the sensation and hype that this book stirred in the world.
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