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5 Lessons from Rich Dad Poor Dad that Changed My Life

I have read many books on Business, Finance and Investing but the one that is most influential in my life is Rich Dad Poor Dad. I’m sharing some of the Most important lessons from this book that made a difference over the last 10 years of my life

1.Rich people collect Assets and Poor people collect Liabilities.

Assets are things that put money into your pocket every month and Liabilities are things that cost you money every month. Lot of people think that their biggest asset is their house but if you are living in your house, it will cost money every month and its a liability. It only becomes an asset if you rent it out or sell it.

2.School teaches us that making mistakes is a bad thing.

When we make mistakes, punishment will be given in School but to become wealthy we must learn from our mistakes. Falling and getting back up is the greatest teaching experience in life and its how we do better and better over time.

3.Pay yourself first. It will motivate you.

This is going to build your wealth faster and motivate yourself to put more efforts in building your wealth. Set up automatic transactions that deposits money into your savings and investing accounts at the beginning of the month so that the money is set aside and is now building your wealth. At the end of the month if you don’t have enough to pay bills let that motivate you to figure out how to make money to pay those bills.

4.Be generous.

Most people think that once they become wealthy then they will become generous. If you want to learn, then you need to start sharing what you know. This creates a mentality of abundance and opens the doors for many more opportunities.

5. Start minding your Own Business.

We are working to make our boss rich, instead switch to working for yourself so that you can keep 100% of the profits that you are creating. This also you to leverage your time and start earning passive income