Rich Dad Poor Dad
Kiyosaki says that the primary difference between a rich man and a poor man is how they deal with fear. A rich man loses money but he is bold about it. They take risks, make investments according to their own knowledge but sometimes they may end up losing money. However in all other times their investments pay off and their earnings are substantial.
A poor man never loses money because they are afraid of taking risks, they are risk averse people. They are afraid to make investments so they don’t lose, but they don’t gain either!
There are five core reasons why even the financially literate don’t become financially independent:
- Bad Habits
The rich man is inspired by their failures as it becomes a teaching lesson, they learn from it and do better. The poor or middle-class don’t succeed financially because for them the pain and suffering of losing money is much greater than the joy of becoming rich. They choose to lead a life which is simple, safe and small. They may purchase big houses and fancy cars but they don’t focus on buying big investments. The main reason majority people struggle financially is because they play to not lose, they don’t play to win.
Focus is one the key that drives the desire of a man to be rich. Unlike poor and middle-class minds who refuse to take risks, the rich put most of the eggs in one basket and they focus. Focus until they succeed.
A smart investor knows that the worst time (as it seems) is the best time to invest and make money. When everyone else is too afraid to act, the smart investor does not hesitate to pull the trigger and get rewarded.
Winners analyze and cynics criticize. The rich dad explained that criticism doesn’t lead to any solution but meaningful analysis is an eye opener and a path seeker. Analysis allowed the rich to open their eyes and look for opportunities that no one knew existed ever. Finding what everyone missed is the key to success.
Losers are defeated by loss. Winners are inspired by loss. One can still hate losing without being afraid of it. – explains the author.
In today’s times, being busy with actually accomplishing things that matter and just being busy can be confusing. In fact, according to Rich Dad Poor Dad, busy people are often the laziest.
The key to building wealth is paying yourself first. Once you pay yourself first the weight of paying taxes and your creditors will give you the necessary drive to work harder than usual.
“I’ve worked extra jobs, started other companies, traded in the stock market, anything just to make sure those guys don’t start yelling at me. That pressure made me work harder, forced me to think, and all in all, made me smarter and more active when it comes to money. If I had paid myself last, I would have felt no pressure, but I’d be broke.” – as quoted by the author.