20 Lessons From Rich Dad Poor Dad That Changed My Life
1
Schools train students to be employees not entrepreneurs or investors. There are more choices in life than just working a job.
2
Financial literacy is rarely taught in school, instead they focus on reading, writing, and math.
3
Working to learn new skills is more important than working to earn a paycheck. Choose a job that allows you to learn, gain experience, and build skills don’t just sell your time.
4
Assets pay you but depreciating assets cost you.
5
Only go into to debt for cash flowing assets, don’t go into debt for depreciating assets.
6
Pay yourself first before you pay your bills. Savings is your most important first step in acquiring capital to invest with. Convert earned income into assets.
7
A financial business plan is more important than a resume in your financial life.
8
The poor and middle class look for a job, the wealthy create jobs.
9
Being broke is temporary for someone with entrepreneurial skills while a poor mindset can be permanent.
10
Your financial IQ is your courage, creativity, and financial knowledge that creates skills, assets, and wealth.
11
The middle class focuses on school, specialization, job security and retiring with benefits which is not as safe a path as they believe in the modern world.
12
Money emerges from good ideas executed well.
13
Without a financial education it will be difficult to hold on to any money over the long-term.
14
Business taxes are structured in reverse compared to employees. Businesses pay taxes on earnings after expenses, employees pay taxes directly on income before expenses.
15
The poor and middle class focus on a paycheck while the rich focus on businesses and assets.
16
Education is one of the greatest investments but only when it’s from the right source at the right price.
17
A good employee is an asset on a business balance sheet.
18
Customers are cash flowing assets on a business balance sheet.
19
The greater your financial knowledge the better your chance of building wealth.
20
The primary lesson of the book is to learn how to make money work for you instead of selling your time for money in a never ending rat race.