Seen as the financial guru by millions, Robert Kiyosaki has definitely given clear and sound principles in his best-seller, Rich Dad, Poor Dad. I’ve recently just completed the book and I can assure you that he has opened up my mind to unconventional methods of streamlining income and certain things “the intelligent investor” should know. Although the book offers so much more, I’ve decided to share 20 things I’ve learned from reading it.
- Assets put money in your pocket, liabilities take money from you
- Accumulate assets, not liabilities.
- Invest more, consume less.
- Invest in financial knowledge. (It’s worth it)
- There are three types of income: Earned, passive and portfolio.
- Use earned income to invest in passive and portfolio income.
- Only take risks on money you are comfortable playing with. This is your risk capital.
- Be aware of the cashflow on your income statement and balance sheet.
- Let your assets cover the expenses of your luxury items.
- Pay for experts. Interview them and choose them wisely. These experts should not only talk the talk, but also walk the walk. Learn from them as well as compensate them fairly.
- Choose your friends wisely to learn the “what-to-do’s” and the “what-not-to-do’s”. Build relationships with those you can learn from.
- Financial IQ is made up of knowledge of accounting, investing, markets, the law, tax advantages and protection from lawsuits.
- Savers are losers. Putting your money in the bank is simply a safe move and doesn’t allow your money to work for you.
- Start early. The earlier you begin, the less you have to lose and the more time you have to bounce back.
- Always pay yourself first, even if you come up short on bills. This will motivate you to create more avenues of income. On the bright side, you’re building your assets column.
- You have the power to use each and every dollar handed to you. You can either create more of it, or spend it.
- To gain wealth, you need to have a deep-seated purpose for your desire of it. This is what will push you everyday to master the game.
- You don’t need to spend a ton of money to make money. Make it a priority to learn about the different ways you can profit without investing thousands.
- An intelligent investor makes money when the market is up or down.
- A HOUSE IS NOT AN ASSET. (Unless it’s producing income).
There you have it! 20 super important things to know and practice. I hope I have enlightened you, if not, provided an interesting read today and do hope to see you all flourish!
On to the next book, Think & Grow Rich by Napoleon Hill. 😀