13 critical lessons from the bestseller “Rich Dad Poor Dad”
1. The rich leave no stone unturned to generate more money from funds at their disposal.
In the modern era, you can generate more funds by letting the money in your possession work for you. We can create residual income by effectively utilizing the funds at our disposal.
Rather than putting funds in the bank, we should invest them and let our money work for us. The most popular instruments for making money from existing resources are shares, gold, real estate, cryptocurrencies and non-fungible tokens.
2. In the modern area, your most significant asset is financial education.
Earlier, there were a few options to invest money. However, in the contemporary epoch, plenty of ways are there to park your funds.
In such a scenario, it is worthwhile to learn about various financial products available in the market. By studying different schemes, we can make prudent choices for making more money from our existing funds.
3. The central focus of our work should be on learning instead of amassing wealth.
Although money is crucial for success in life, we should not run after it. Our central focus should be on learning the tricks of our trade so that we can shine in our work.
This wise approach helps us stay ahead of the competition to lead our lives toward an impressive growth trajectory.
4. We must understand the difference betwixt assets and liabilities.
To amass wealth our central focus should be on building assets than liabilities because our possessions which require funds for their maintenance are nothing but liabilities.
For example, gold is an asset because it doesn’t depreciate with time. On the other side, a car is a liability as its value declines with time.
5. We should minimize our spending as much as possible.
In this era of fierce competition, the companies leave no stone unturned to showcase their products alluringly. By seeing the flashy advertisements, we end up indulging in impulsive purchasing.
Hence it is imperative to buy only things that add value to our lives and stay away from unnecessary products and services like a minimalist.
6. The prudent approach we must adopt is to reinvest our profits.
Most people have this uncanny knack for spending the profits they get from their work or business. This approach is counterproductive in the long run.
We must reinvest our profits so that our money works for us and we can enjoy the benefit of passive income.
7. We must focus on holistic development of ourselves instead of putting time into a skill which is workable in one industry.
Nowadays, plenty of options are available to us to climb the ladder to success in our careers. Hence, it is worthwhile to focus on comprehensive development than working on a skill workable in one industry.
A field which is seeing tremendous growth might not be there in future. Hence holistic development is of utmost importance as it helps us handle conflicts adroitly during challenging times.
8. Management of cash flow, systems and people is of utmost importance for financial success.
Success thrives primarily on cash management, systems, and people who support you. These three are the pillars of success.
Without cash management, the funds at our disposal could go for a toss. Moreover, the work efficiency pivots around the systems we adopt at our work.
Lastly, the people who work with us are our most significant assets, because without their unabated support, achieving success is a daunting task.
9. Communication skills comprise not only speaking and writing but also negotiating.
Many people believe that soft skills comprise two factors speaking and writing. They do not know that negotiating is a lethal weapon which occupies a significant role in success.
Poor negotiators usually lag in lives because of their inability to convince people.
10. Taking risks is a worthwhile proposition to lead our career towards an impressive growth trajectory.
Although safety is of paramount significance, we cannot move ahead in our lives without taking risks. By moving beyond the conventional domain, we discover our hidden talents.
11. Be a voracious reader and remain open to new ideas.
There is no denying this conviction that reading develops our minds. By becoming avid readers, we can gain heaps of knowledge which helps us make informed decisions to solve the pressing problems in our society.
12. Think big with a growth mindset
Sometimes our narrow and visionless thinking is a stumbling block to our success. By having a growth mindset, we can make collosol gains.
13. Take valuable lessons from history and start small to make collosol gains.
It is irrefutable to say that history is the best teacher. By taking valuable input from the mistakes we committed in the past, we can revamp our strategy and make prudent decisions accordingly.