Robert Kiyosaki’s Rich Dad, Poor Dad has been a decades-long best-seller for a reason. But despite recent and emerging graduates having not really heard too much about the book (especially given that the zenith of its popularity was easily over fifteen years ago), there’s still a huge load of lessons in there that help massively when it comes to money matters. Furthermore is that, given the book’s focus on long-term financial security, the lessons that spill over into today’s graduate financial world are just as pertinent as they were when Kiyosaki originally sat down to pen his smash-hit debut.
Here we take a look at four key things this book can teach you, saving you the time and expense of picking up a copy and having a read-through yourself.
Don’t Work: The Rich Don’t, Nor Should You
Fear and desire. Those are the two main feelings that stop most people from becoming wealthy. The fear of not paying bills on time or losing your savings, coupled with the desire of spending what you could save on things that won’t accrue in value. The first lesson from the book is to seek to understand these mechanisms and then hold back on letting them control you. Focus instead on things that will bring in a residual income over time, even when you don’t work.
Get to Grips with Financial Matters
Don’t bury your head in the sand and turn away from financial matters nor let yourself become intimidated by jargon and buzz-words. Seek to understand finance and educate yourself as much as you can in the ways of financial literacy.
The key terms can be picked up pretty easily, it might even be worth doing a short online course using a MOOC (free learning materials from Universities) so that you understand the nuances more broadly. Income and expenses are straightforward enough, but things might become more complicated in respect to bonds, investments, trading strategy and stocks.
To become wealthy you focus on your assets and investments and not on increasing your income.
Eyes on Your Own Business
Another key lesson to come out of Kiyosaki’s book is the notion of what he calls “Mind Your Own Business”, which is the realignment of your focus on your assets and your own finances at large. For graduates looking for more actionable advice on how to do this, the general rule of thumb is to look to keep your expenses as low as you can while building a base of solid assets (property, stocks, bonds and other investments).
The Invention of Money
Wealth creation isn’t all about focus and study, it’s also about confidence and grit too. As Rich Dad, Poor Dad points out, a lot of the limiting factors causing money concerns for people come from the notion of self-doubt. If you have faith in yourself and invest money outside of the areas that feel most comfortable to you then you stand to make larger gains. Places where relative risk is at stake are sometimes worth investigating.