Many people can have million dollars idea and they are quite confident about their ideas but they don’t know how to turn their ideas into millions of dollars. The famous novel on finance Rich Dad, Poor Dad, written by the famous American businessman and motivational speaker Robert Kiyosaki gives us awesome personal finance lesson that can help every youngster to convert their ideas into dollars.
In the book you will find a story of two fathers- one is the narrator’s father (Poor Dad) and second is author’s friend Mike’s father (Rich Dad). The book talks about the way they think about money and how they manage it. You will find some interesting difference between habit, mindset and philosophy about both dads.
We are here with 10 Awesome Personal Finance Lesson from ‘Rich Dad, Poor Dad’.
1. You will learn with the experience
The author Robert Kiyosaki started his business with the very small amount of money and his first investment was just 18,000 dollars that gave him 25 dollars per month which were really less. He didn’t manage to get much amount from the first deal but every time he made another investment, he got experience from that investment and that made him smarter. Every time he invested he earned more money from the previous investment.
2. Choose several streams to work
Do not completely rely on your job to become rich and financially secure. Choose two three streams from where you can earn money. Start a business and try to focus on it, develop assets.
The Job is can be defined as working for someone else throughout your life but business can be defined as working for yourself and by working for yourself. You can earn the enormous profit, real assets and real income for yourself.
In the book, rich dad realized that real assets will serve him throughout his life and are anything with value- bonds, shares, property, real estate etc.
3. Start thinking in a new way
In order to get financially stable you need to start thinking in a new way and develop a positive attitude towards your life. Often businessmen have a negative attitude towards tax collectors and regulators but Robert Kiyosaki took them as a motivator and tax as a motivation to make more dollars.
4. Money was invented by the rich
Self-doubt is something that holds us back. Most of the people wait for luck and opportunities but the rich people make their own opportunities out of obstacles. Practical ones make money. In order to make money, you must be bold and take big risks. If you won’t take the risk your entire life would be spent waiting for some miracle to happen.
Here Mr Robert stressed on financial education. He also said rich don’t make money by working harder they also strive to educate themselves financially in order to get more powers and options.
5. Make your savings, your investment
Saving is considered as wisdom but remember investment is necessary to cope up with fluctuations in the value of the currency. Saving will weaken your purchasing power while investment will increase the value of your money. So hedge your money and make a better financial investment.
6. Get yourself paid
Try to make the budget and pay yourself in the first place. Try to the keep money for yourself from your daily routine. In his book, Robert Kiyosaki mentioned each month the rich dad used to pay himself and with this money he use to save and purchase assets for himself. This is the example of some expenses that helped him to become rich.
7. Make a team
More hands always give more success. In order to get success you need support especially in the sectors like business.
In the book, the rich dad took a team support for business and investment. Self- employed people often fail to taste the success because they are merely an individual trying to compete with the whole team.
8. Categorize good and bad debts
In order to understand debt strategy, first, you need to understand the difference between bad and good debts. And how to make good debts in your favor.
Borrowing money to start a new business comes under a category of good debt whereas spending over your credit card limit for personal expenses is classified as bad debt.
In order to get success discover new ways to get good debts.
9. Be strong in the period of recession
You will never become successful if you will lose hope in the period of loss or recession. Be strong and start making plans for future. This will give a new height to your business.
10.Design and implement your business properly
A good and properly designed business does not face an issue of investment and capital. If you have a properly designed business plan many investors will be attracted and will give initial funds to start your project.
Someone has said, a good business plan has the ability to generate money automatically.
It is necessary for investors and people who are going to start the business, to have proper knowledge of money matters. The money decisions you take regularly will influence your future and plans. So, you should act wisely.
The first step should be to make sure that you get your savings & investments right.
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