“It’s not how much money you make, but how much money you keep, how hard it works for you, and how many generations you keep it for”
“Rich Dad Poor Dad” is a book written by Robert Kiyosaki which is a bestseller till today. This book holds up two experiences that Kiyosaki had from his two fathers, his biological father who is poor and his best friend’s dad who is rich.
This book focuses on the comparison between the two financial philosophies, one by the poor dad (biological father) and the other by rich dad ( best friend’s father). This book has great learnings for financial literacy and in this article, we will discuss the three lessons from Kiyosaki’s Rich dad and Poor dad.
Three Great Financial Learnings
“It’s not how much money you make, but how much money you keep, how hard it works for you, and how many generations you keep it for”
Explanation: In these lines Kiyosaki quotes that only earnings cannot do anything if the person has no clue how to be financially intelligent. When broken into parts, this statement stated that the high earnings does not make you rich as luxurious lifestyle and high taxes can undermine it and the money that we earn should be saved and also be invested right so that it can grow over the period of time. What makes a person rich is his money that he leaves behind for the upcoming generations.
“If you cannot get control of yourself, do not try to get rich. It makes no sense to invest, make money, and blow it. It is the lack of self-discipline that causes most lottery winners to go broke soon after winning millions. It is the lack of self-discipline that causes people who get a raise to immediately go out and buy a new car or take a cruise.”
Explanation: The quoted lines states that the person who is not disciplined enough to control themselves should not try hard to get rich. It is senseless to invest and make money if the amount is not spent well or saved or invested in a correct manner. Most persons who win lottery do not remain rich or millionaire for a longer time because they don’t invest it right and just blow the money away . Investment is the key.
“An asset puts money in my pocket. A liability takes money out of my pocket.”
Explanation: Kiyosaki wrote this quotation very well that says an investment which is an asset means the expenditure that is growing money keeps the money in my pocket and the liability (the one where we spend and no money is grown) for instance buying a car, liabilities blows the money away. It doesn’t mean one should not spend but it means that one should spend in a correct manner.
