Updated: Sep 30, 2022
The book “Rich Dad, Poor Dad” by Robert Kiyosaki is a personal finance book offering life lessons that can change your life. It’s different from other financial books that provide do-it-yourself strategies on how to make money.
“Rich Dad, Poor Dad” offers great insights on nurturing a consciousness of wealth. Essentially the book describes how a wealth mindset (Rich Dad) differs from a poor one (Poor Dad) and that cultivating the wealth mindset is the key to becoming rich.
Most of us were not raised with skills in building a strong foundation with money. Instead most of our lessons about money we learned by trial and error or through our first credit card application!
Here are some key ideas from the book that can change your life.
1. Mistakes are merely lessons
Our school system penalizes us for our mistakes. As a result, we grow up trying to avoid making mistakes, but our greatest lessons come from learning from our mistakes.
For the wealthy, failure is a powerful teacher. And if you believe motivational speaker, Dennis Waitle,“There are no mistakes or failures, only lessons.”
2. Playing it safe keeps us stuck
From that very first step we take as babies, till the day we die, life is full of risks. That is precisely how we grow. Unfortunately, our parents and school systems do all they can to minimize our exposure to risk.
Avoiding risks by playing it safe inhibits our growth and keeps us stuck. Making money takes risks, but the greatest loss comes from staying stuck. Life rewards those who take risks. Instead of avoiding risks, educate yourself on those risks and learn from professionals. It doesn’t negate the risks. Just means you take educated and well-calculated risks.
3. Study all you can about the money system
Money touches all aspects of our lives and our relationships. As a result, it is essential that you study all you can about money, such as how to get money working for you. And the workings of the financial system.
4. Work for experience and satisfaction instead of working for money
Despite its importance in our lives, money should not be the primary source of motivation for why we work. Instead, we should work for experience and job satisfaction and not solely for monetary gains.
We have heard the adage, “Do what you like and the money will come.” This is not always true but there is wisdom in doing something meaningful with our lives. Ultimately, we will be financially rewarded for doing something well and we do things well when they bring us satisfaction.
5. Desire and greed are great motivators
Desire and greed are two strong human emotions. When directed in a healthy way they can birth incredible ideas on how to make money. But always aligned with your values. Use your desire and greed to motivate you to make money.
6. Your destiny lies in your words
Your words hold great power. Chose them wisely and never underestimate their power to bring about desired outcomes. Articulate thoughts in the form of an inquiry that is positive and constructive. Inquiry is a great way to look for solutions but even these should be done in a positive way. Instead of saying, “I can’t afford it,” say, “How can I afford it.”
7. Take on the identity of the person you want to be
Taking on the identity of the person you want to be, sounds like “fake it till you make it” but it is not. If you want to feel wealthy, start thinking much like a person who is wealthy. If you have never been wealthy and don’t know anyone wealthy you may feel like it would be a challenge to take on the identity of someone wealthy. Then consider what it must feel like to be abundant, with all your debts paid off and living the life you desire.
8. Learn about investing before you start investing
You don’t get rich by saving but by investing. But where should you invest? Quite often when people come into a little bit of money they jump into some get-rich-quick scheme or they become prey to people promising to double their wealth. Learn all you can about investing before you actually start investing.
9. Be selective about what you feed your mind
Just as you are what you eat, you become what you think. Fill your mind with positive and affirming, thoughts. Stay away from mind-numbing TV shows. Read books that empower you. Watch videos that feed your mind.
What you feed your mind will either nourish you or stunt you. “Feed” on what will nurture a growth mindset.
10. Surround yourself with growth-minded people
Never underestimate the influence of your friends and community on your behavior, no matter how “strong” you think you are. Studies have shown this time and time again. If you want to make a long-term change in your mindset, surround yourself with people who possess a mindset and a life you admire. It will definitely rub off on you.
11. Pay yourself first
As the world’s most famous financier Warren Buffett says, “Do not save what is left after spending, but spend what is left after saving.” Most people are poor because they spend their income before they save. For most, there is little left over at the end of the month. If you want to seriously change the trajectory of your finances, consider saving 10 to 20% of your income as soon as you receive it.
12. Action always beats inaction
No amount of self-help books, courses, seminars, or YouTube videos can make you wealthy. Only you can. And you do it by taking immediate action. Not waiting till the time is right but making this the right time.
So, what can you do now to make start creating a consciousness for wealth? Learn about investing? Open a savings account? Download an app to keep track of your expenses. Start investing your savings.
An article by Jennifer Thompson