5 Lessons from Rich Dad Poor Dad
I've had the opportunity to meet and speak at an events with Robert Kiyosaki, author of Rich Dad Poor Dad. Those experiences have been incredible that book had such a big impact on me. I would listen to it while renovating single-family homes on the weekends when I was first starting out.
Remembering what a turning point that time was for me, I started looking back at some other moments that inspired me in a big way.
Like watching my mom go from her bookkeeping job to managing properties SHE owned full-time. She did whatever it took…even when everyone thought she was crazy. Watching her succeed while people underestimated her was super powerful.
Or when I discovered the BiggerPockets podcast. Listening to those guys made my real estate investing goals seem more possible. Shortly after that I went to my first real estate investing conference…I was like Wow!
I was still in the phase where I thought I needed a 9-5 job to be able to invest in real estate. Between BiggerPockets and that conference, I realized that with creative financing I could make this my full-time job. I could do more than invest. I could become an INVESTOR.
Then I came across Rich Dad Poor Dad, and it solidified everything I was thinking.
All these starting points, these sparks, these moments that made me go WOW, came together to inspire me to stop wasting my time and to start to think bigger, sooner.
What moments made you go WOW? Is it about time for another one?
5 Lessons from Rich Dad Poor Dad
1. Assets vs. Liabilities
Assets put money in your pocket. Liabilities take money out.
The rich acquire assets. Other people acquire liabilities they THINK are assets.
2. The Cashflow Quadrant
There are 4 paths to making money…
- Employee - works for the system
- Self-employed - is the system
- Big Business Owner - creates, owns, and controls the system
- Investors - add money to the system
3. Rich people don’t work for money.
This doesn’t mean they don’t work. It means they work in a DIFFERENT way.
- Create cashflow to make money while they sleep
- Build systems for long-term wealth
- Hire out small tasks to focus on the big picture
- Let real estate investments compound over time
Find ways to make your money work for YOU. Instead of you working for your money.
4. Your home is not an asset.
Does a mortgage payment put money back into your pocket?
No…it’s a liability, not an asset.
This is especially true if you don’t own your home yet.
Your home is the bank’s asset because with each mortgage payment YOU’RE putting money in THEIR pocket.
5. Don’t say, “I can’t afford it.” Ask, “How can I afford it?”
Saying you can’t afford something implies a lack of hope and kills dreams.
When you consider HOW you can afford something, it shifts your money mindset. It reignites hope and possibility. Have an abundance mindset instead of a scarcity mindset.
