3 Things I learned from rich dad/poor dad and 1 I didn’t

I recently read Rich dad poor dad which discusses the importance of financial literacy. It teaches that through anecdotes that a rich dad gives to his son’s friend and contrasts it with the advice given by a middle-class father. Overall, I liked the style and key points of the book. Below are my key takeaways.

What I learned

1. Don’t work for money! Make money work for you

Some people might say “duh, but it’s not that easy”. I agree, and the whole book is about saying that this shouldn’t stop you from trying and learning how to reach that goal. Others might say “I’m earning enough money and save enough on the side”. You might feel that you have enough money to live comfortably with a good lifestyle but that’s not the definition of wealth that the book is focusing on. A better definition is:

“Wealth is a person’s ability to survive so many number of days forward. If you stopped working today how long could you survive? “— R. Buckminster

How?

Invest in assets that bring you a steady stream of money without the need to manage them day to day. If you’re spending time managing them it’s not an asset it’s a job!

Understand money