One of the best financial literacy books in the world is Robert Kiyosaki’s Rich Dad, Poor Dad. In this book, Robert tells his story about growing up with two dads – his real father and the father of his best friend, which happens to a rich man. He openly shared how both men shaped his thoughts on money.
With this in mind, we decided to feature the best lessons from the book. Read through, and you might discover something that can change the way you think.
#1 – Learn to listen.
There are many circumstances where it’s better for us to remain silent and listen to what someone has to say. By listening, we become a better person, and we learn how to properly communicate with another person. It is also through listening that we get to learn new things.
#2 – Pay yourself first.
This is one of the most powerful habits all wealthy people do on a regular basis. Most people upon getting their paycheck tend to pay their bills and other utilities first, but what millionaires do is they always pay themselves every time money comes in their bank account.
#3 – Buy luxuries last, not first.
Almost all luxuries tend to depreciate over time. So why prioritize your luxuries over your needs and savings? Like they say, if you buy something you don’t need, you may end up selling it in the future alongside the things you need.
#4 – Reduce expenses and liabilities.
By just changing a few habits in our daily lifestyle can do a lot in reducing your expenses. This is the reason why budgeting money is also important. It lets you check everything that you spend your money on. This then allows you to eliminate any unnecessary expenses.
#5 – Aim for more valuable assets.
Let me get one thing straight, your high-end gadgets are not assets. You can rarely call them one because they all depreciate over time. Valuable assets are those that increase value over time such as a house, a lot, and investments.
#6 – Be in control over your emotions.
I firmly believe in what Charles Swindoll said, that life is 10% of what happens to us and 90% of how we react to them. Emotions can lead us to do things that we may regret in the end. So as much as possible, don’t let your emotions control you, but instead, learn how to control your feelings.
#7 – Work to learn, don’t work to earn.
Successful people all have one thing in common, they have a learning mindset. They focus on gaining experience and learning things before anything else. This allows them to seize every opportunity where they could learn something new.
#8 – You become what you study – read a lot.
There’s a saying that you are what you read. This is because the brain is hardwired to adapt to any information you feed into it. The more you listen and read about something, the more your brain becomes accustomed to it.
#9 – Reinvest excess cash generated by assets.
The reason why rich people become richer through time is because instead of buying things with their excess cash, what they do instead is put it into another investment. This is what you call diversifying the investment portfolio.
#10 – Surround yourself with people smarter than you.
Successful people don’t just end when they have learned something they want, they make sure to learn more. One of the best advice my mentors tell me is that if you want to be smart, make sure that you surround yourself with people smarter than you.
Hi! I’m Erika Yap Celario, a millennial frugalist, who’s here to help and join you on your journey to financial freedom. I’m also a proud Financial Advisor and Licensed Insurance Agent of Sun Life. For questions or concerns, you can email me at firstname.lastname@example.org or call me at 09194872581.