Introduction
My friend, whoever may be the person in the world needs to achieve financial freedom. The rules to become rich are not simple. It requires lots of hard work and sacrifices only it will come to you.
If achieving financial freedom is nothing but having financial literacy. The only way to learn financial literacy comes from reading books. Books are capable instruments to feed your brain.
That’s why lots of books in the world are written about finance and self-development. Here also we discuss a book. In 1997, Robert Kiyosaki wrote a book named “Rich Dad Poor Dad”. If this book were published it will get skyrocketed. It’s become the most selling book of all time.
Many people in the world read this book and achieve success in their lives. The author says in the book, he has two fathers in his life. One father is his real father he marked him as “Poor Dad”. And his friend Mike’s father was marked as “Rich Dad”.
His real dad was an educated person. And also he is a professor at a college. But, he struggles for money throughout his entire life. This is the reason we’re the author says he is a “Poor Dad”.
The other dad is not a much-educated person. And also he is a successful businessman. He is not struggling for money in his life. This is the reason we’re the author says he is a “Rich Dad”.
Author Story
He wrote in his book, that he is 9 years old. His classmates are rich. They are enjoying their vacation in a resort. But, they never invited Robert. Because he is poor. That’s the reason my classmates never invited me to the resort. It will impact the author a lot.
He is going to ask his poor dad “How to become rich?”. But, his real dad has no answer to his question. Also, he advised him to ask his question to Mike’s dad. He is the person who answers.
Then the author goes to his rich dad to ask this question. This phase of the author’s financial education journey has started. The rich dad shares his life experiences. He advises the author to get rich and stay rich for the rest of his life.
Here are the best advice and rules he gives to become rich. The author also follows this and seeks out the rules to become rich. Let’s get started.
5 Rules To Become Rich
1. The Rich Don’t Work For Money
Generally, every person wants to earn money. We work hard to make money. We try to earn money by getting a good job. The job with a high paying salary. At the end of the month, we can want to get the money.
After getting the job people work with full dedication and effort. And also people get trapped. Mostly they never get away from the trap.
Many of them get trapped in the name of success. The greed to get money people trapped in the rat race.
We know that we paid at the end of the month. And people get loans and buy luxurious things. People bought houses, cars, and many things.
Use a credit card to buy many unwanted things. And people get trapped the trap’s name is “Debt”. And it’s getting hard to get away from debt. Whichever the things you bought from loans, you need to pay the loans. The repaying of the loan was to spend a major portion of your life.
For many years you have had to work to repay the loans. A maximum of your salary will be spent to repay your debts. Many people’s entire life is spent repaying their debt and working for the job.
Now you have the question if don’t work for the money? Then what do we have to do?
Rich people don’t work for the money. They do some things to make money work for them. Do you think about how the money works for them? Don’t complicate or think about it. The answer you get from the next points.
2. Financial Education Is Very Important
At this point, the author says every human being knows money and financial knowledge. The crazy thing is no schools and no college in the world teach financial education.
The reason is the modern education system. Our education system studies a lot, gets good marks and gets a job. The real fact is no job in the world makes you rich.
For example, a person who studies well and becomes an engineer, doctor or lawyer. These people also come under the 9-5 job category. The author says you want to break the circle of 9-5.
The author lists out two categories in his book: “Assets” and another one is “Liability”. In simple terms,
- Assets – It puts money in your pocket
- Liability – It takes money out of your pocket
For example, buying a new house. Rent to a person and the person pays the rent. The money comes to you. It is an asset. If you buy the same house in the name of loans. You pay the loans to the bank. The money is out of your pocket. It is a liability.
Rich people buy assets and minimize their liability. This thing is not taught in any of the schools. They said to go to get a good job. Money-growing knowledge only comes through financial education. The rule to become rich is to learn financial education very well.
3. Do Your Own Business
The author says to do two jobs at the same time. When a person works for one job, he has to do another job at the same time. It will increase the person’s income.
You don’t need to start a big one. Because at the start you don’t have much money. So, Take small steps. When you work for the job in the morning and do another job you love at the night time.
One is your profession and another one is your passion. For example, a person working as a teacher. It is considered as the person’s profession. The same person has a nice skill. He uses it to make additional income at the same time.
One time McDonald’s owner Mr Ray Kroc gave a speech to an MBA class. Kroc asked the students “What business that I do?”. Every student replied You sell burgers. Kroc just laughed and replied to the students that I do real estate business. If any person wants to get a McDonald’s franchise, he has to buy the land at the same time. Now the real estate business is done.
Today, McDonald’s is one of the biggest real estate companies in the world. It owns almost 38,000 restaurants in over 100 countries.
The rich dad says to the author is, people work for others and don’t work for themselves. The people also want to focus on themselves and work for that.
The rules to become rich were following the norms to attain success as soon as possible
It means you don’t have to quit your job. If you work for your job and at the same time. He has to build the assets to become financially free.
4. Want To Learn, Not To Earn
The author says in his book, he has an interview in Singapore. A female journalist interviewed the author. The female journalist says her dream is to become best selling author. But, she had to complete her dream.
The journalist’s writing is so good. The author read many of her articles before. He advises the journalist to take a Sales training course. After she hears the advice, she gets angry.
Because she is well educated. Also, she has a master’s degree in English literature. In her point, sales are not to her standard.
The author says the world has many knowledgeable people. But the point is to make money talent is not only the eligibility. People have to learn how to capitalize on their talent. And using the talent to make money.
People can’t make money when they have to sell their talents to others. If people don’t monetize their talent it is a waste to have the talent.
In this story, the female journalists like people did not learn the sales training. If she has to learn sales she will become a best-selling author.
The difference between the rich and the poor is constant learning only. The poor people don’t learn anything. And rich people learn things. These people follow the rules to become rich.
The author says, the poor dad always worried about his job. The rich dad always gives time for learning. It is important to learn new things about his business. It is the difference why the rich get richer and the poor get poorer.
5. Overcome The Obstacles
The author mentions in his book, many people have good knowledge about money. However, the obstacles were not the person to achieve financial freedom. The author lists out 5 obstacles that don’t allow people to attain financial success. These 5 factors were the barriers to rules to becoming rich. which Here are,
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Fear:-
Anyone in the world has the fear of losing their money. Not only poor people, but even rich people also fear losing their money. The problem is how to deal with that situation. The point is how you deal with the problem. The difference between the rich and the poor is how they handle those problems in their life.
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Doubt:-
If we have to invest our money. We have lots of doubts that won’t allow us to make decisions. We’re we doubt that our money will be lost while investing. What happens when we have plans are failures? The doubts make us fear making the right decisions. Many of the opportunities are crossed over us but we watch that not taking any required actions. So, throw away doubts and take quick action.
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Laziness:-
It is the biggest enemy of people. The author says a person who stays busy with his work is a person who has lots of laziness. Being busy at work is not a problem. The work will suck all of your energy and it will make you lazy. Set the parameters of your busy schedule to avoid laziness.
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Bad Habits:-
The author says that he has to compare rich and poor people’s habits. Rich people have strong habits and follow them and poor people don’t follow them. The rich people pay for themselves first. The author gives money for himself first. That’s why the author becomes financially and emotionally stable. When you get the money start saving and investing money for yourself and give the rest to spend. First, pay for yourself and give next to other options. It will increase the money and give a variety of opportunities to the people. The rules to become rich are happening while you will quit all of your bad habits.
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Ego:-
The rich dad says some people have a lot of ego. They use the go-to to hide their ignorance. Get the ego away from yourself. The people will make money on what they know and leave the rest. It’s not right, your ego will not get to learn about the other’s knowledge. It will help you avoid unwanted losses.
Conclusion
These are all the things that I summarize for you to learn. I strongly recommend the “Rich Dad Poor Dad” book for you ruled. The rule to become rich is to understand money. The ideology of money is to maximize assets and minimize liability. Understand a materialistic life is not a successful life. Being debt-free is a real success. Most people in the world will not understand this. That is why 1% of people will become successful.
Read More:- Assets That Make People Rich
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