Important lessons to become Rich : "Rich Dad Poor Dad"

By Arun Dahal Khatri

“Rich Dad Poor Dad” is one of the most practical personal finance books ever written. Robert T Kiyosaki, the finest and most logical personal finance coach, and a real-life business person made some important points regarding the way of making decisions on the topic of finance. The book is a masterpiece when it comes to managing finances and income. Everyone who wants to be financially independent and capable should read this book at once.” if you want to be rich you need to be financially literate” is the core theme of this book and it helps us to understand the core value of finance and build a strong foundation. Finances need logical and practical decision-making abilities. Therefore, this book gives the idea to balance our financial sheet and make logical financial decisions.
 
The Five greatest Lessons from The “Rich Dad poor Dad “ 
 
1- We must understand the difference between assets and Liabilities
The greatest problems of today's time are that most people are still confused about the difference between assets and liabilities. What puts money in our pockets? Is one of the ideal and logical questions which people ignore and bear the great loss. Interestingly, most people still think that their greatest liabilities are their profitable assets but that is not the fact. We must understand the asset and their power to make us financially strong and the liabilities which make us put our money out of our pocket. Indeed, the things which give us money continuously without doing work regularly are called assets(company Stocks, real estate, and knowledge), and the things which take money from our income are called liabilities ( Tax, credit cards, mortgage loans, house loans, rent).To become rich, we must understand the value of assets and need to know the ways to overcome the liabilities.
 
2-Buying the asset is the way to become financially independent
Pursuing the road of wealth is not hard but doing it. The habit of using our income is one of the most important things to shape our financial future. If we have the habit to buy the assets then it's the fact that we are on the right track and will become wealthy soon because it has a great impact on our balance sheet and makes our overall financial statement strong. Buying the assets helps us to increase the value of our overall property. Assets having strong fundamentals and with minimum risk continuously pay the money to us in the name of dividends and bonuses.

3-Liabilities continuously cut our income 
 Most of the people who are struggling to make their life financially independent are those who have a great list of liabilities. The habit of their decision-making and giving the priority to welcoming the liabilities in their balance sheet made them financially weak. Liabilities regularly cut our income and make our financial statements unbalanced. Their approach of using liabilities as assets makes them too stressful. Therefore, if we want to become financially strong then cutting the liabilities is one of the most important tasks. In addition, Most middle-class and poor people have the habit to add liabilities to their
balance sheet because they focused more on their desires before becoming financially independent. Most of our desires cut our wealth before becoming rich. 

4-Understand the power of knowledge
Rich dad is intelligent because of his great ability of financial knowledge. There is a saying that the investment made in knowledge pays the highest dividend in our life. Knowledge not only shapes our minds sharply but also makes us think critically and helps us to make the best decision. "Rich Dad Poor Dad" is overall a financial book with knowledgeable ideas including some logic regarding personal finance. To become rich we must invest in our knowledge at first because every time challenges knock on the door and we have to solve the problems logically and only knowledge has the power to solve them. Kiyosaki suggests we read financial books and sharpen our minds and made investment and financial decisions because every decision has a price and if we missed it then we have to pay the opportunity cost.

5-Start your financial journey with a wise and intelligent mentor
Robert Once said that “ I have a mentor, or coach, for just every single area of my life” .an intellectual and logical coach is one of the most important assets in our life because he helps us to give particular ideas and gives the advice to choose the right road. without pursuing a mentor nobody gets success in any area of life. In the field of finance knowing the challenges and mistakes is significantly important because if you got a mistake you have to bear the great loss, therefore, it is wise to understand and learn from others' mistakes. So, the book suggests we make great mentors having tremendous experience. Monitor not just makes us financially independent but also helps us to shape our minds emotionally strong. Pieces of advice from the mentor play an important role to make the financial decision because they have the idea to overcome the challenges and risks.