Book: 20 Lessons from Rich Dad, Poor Dad, by Robert Kiyosaki
This bestseller was released in 1997, but it remains a hit among those seeking financial education. It's in its 85th edition and has already sold over 9 million copies worldwide. Using simple language, the entrepreneur and investor shares the lessons he learned from his wealthy father, a businessman who only had a high school diploma. This advice, according to the author, was the main impetus for his own wealth accumulation.
Besides challenging common thoughts like "get a secure job," "study hard," and "your home is your greatest asset," Kiyosaki explains how financial intelligence is a big step toward building a solid wealth. Exame Magazine selected quotes from the book that summarize some of Kiyosaki's financial advice. Read on to learn more about these thoughts:
1 – Your home is a debt. If yours is your biggest investment, you'll have problems.
2 – There's a difference between being poor and being broke. Being broke is temporary. Being poor is eternal.
3 – The poor and the middle class work for money. The rich make money work for them.
4 – Avoiding money is as neurotic as being attached to money.
5 – I hear things like “I like this job because it’s secure” instead of questions like “What am I missing here?”
6 – Retirement for me doesn't mean stopping working. It means we can work or not, and our wealth will continue to increase automatically, staying well ahead of inflation.
7 – Too many people worry excessively about money and not about their greatest wealth: education.
8 – Intelligence solves problems and generates money. Money without financial intelligence disappears quickly.
9 – Most people don’t realize that in life what matters is not how much money you make, but how much money you keep.
10 – If you tend to spend everything you earn, an increase in available money will most likely only result in increased expenses.
11 – The rich buy assets, the poor only have expenses and the middle class buys liabilities thinking they are assets.
12 – The main reason the poor and middle class are financially conservative (...) is that they have no financial foundation. They just cling to their jobs. They do what's safe.
13 – Start buying real assets, not liabilities or personal items that have no real value (...). A new car loses about 25% of its price the moment it leaves the dealership. It's not a real asset.
14 – The rich accumulate assets. Then, with the income generated by these assets, they buy luxury goods. The poor and middle class buy luxury goods with their own sweat, blood, and even inheritances from their children.
15 – If you work for money, you are ceding power to your employer. If your money works for you, you maintain and control the power.
16 – Financial genius requires both technical knowledge and boldness. If fear is too strong, genius dies.
17 – Saving monthly is a valid recommendation. The problem is this: it blinds us to what's happening around us. We miss out on great opportunities for greater gains.
18 – Financial intelligence consists of four skills: the ability to understand numbers, investment strategies, the market, and the law. These are the basic foundations for success in the pursuit of wealth.
19 – Great opportunities are seen not with the eyes, but with the mind. Many people will never become rich simply because they lack the training necessary to recognize the opportunities that lie before them.
20 – Unfortunately, the main reason most people aren't rich is because they're afraid of losing. Winners aren't afraid of losing. But losers are.
