Many people work very hard in their life, few people work more than 10 hours a day but but eventually do not save much and never get rich. Robert Kiyosaki author of the book explains smart ways to escape this “rate race”. Here are the important lessons from the book (Summary).

  1. For rich people, assets and investments are their income.
  2. The emphasis is to buy luxuries last, not first.
  3. Excess cash flow generated by your assets should be invested again to acquire more assets.
  4. Do not simply aim for more income, aim for more valuable assets, keep repeating the circle.
  5. Reduce your expenses low and cut your liabilities. Expenses and liabilities beyond means are not good.
  6. Study the history and structure of corporations and make your own.
  7. Know a little about everything. Learn something about accounting, investing, markets, law, sales, marketing, leadership, writing, speaking, and communication. Know little about anything you can.
  8. Work to learn, don’t work to earn. Find a job where you can learn skills.
  9. Do not simply buy investments. first, learn how to invest as no one else can do it better than you.
  10. You become what you study, so choose your study materials carefully, read a lot.
  11. Every rich person has lost money at some point, but many poor people have never lost a dime. Playing not to lose money means you will never make money. “Winning means being unafraid to lose.
  12.  Do not be afraid of losing and be bold enough to admit and learn from your failures.
  13. Be in control over your emotions. Do not let fear or opinion of anyone dictate your actions.
  14. Most sellers ask too much. It is rare that the asking price is lower than something is worth.
  15. Surround yourself with winners. Sit with people who are smarter than you and you can learn a lot by surrounding yourself in their company.
  16. Saying “I can’t afford it” shuts down your brain. Asking “How can I afford it?” opens up your brain. Change your questions to change your life.
  17. Pay yourself first. Each month, first invest a certain amount of money into income-generating assets before you pay your bills. Short of money, use this pressure to keep yourself on your toes to generate more cash.
  18. Dream big, have a clear game plan in your mind. Always seek answers to important questions such as “why do you want to earn more passive income?”
  19. Develop a skill to listen. Listening is more important than talking. Do not constantly argue, instead listen and observe. Ask questions and try to gather as much knowledge as you can from others.
  20. On the market: do not follow the crowd, and do not try to time the market. Profits are made when you buy, not when you sell.

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