{"id":11099,"date":"2020-07-21T12:02:00","date_gmt":"2020-07-21T16:02:00","guid":{"rendered":"https:\/\/www.shortform.com\/blog\/?p=11099"},"modified":"2020-07-29T12:27:33","modified_gmt":"2020-07-29T16:27:33","slug":"rich-dad-poor-dad-lessons","status":"publish","type":"post","link":"https:\/\/www.shortform.com\/blog\/rich-dad-poor-dad-lessons\/","title":{"rendered":"Rich Dad, Poor Dad: 6 Lessons for Financial Success"},"content":{"rendered":"\n

What are the Rich Dad, Poor Dad<\/em> lessons? What can you learn from these different philosophies?<\/p>\n\n\n\n

The Rich Dad, Poor Dad<\/em> Lessons revolve around making the right decisions to lead to financial independence<\/a>. Rich Dad, Poor Dad<\/em> lessons offer financial knowledge<\/a> as well as advice on how to think about money. <\/p>\n\n\n\n\n\n\n\n

Rich Dad, Poor Dad Lesson<\/strong>s<\/h2>\n\n\n\n

These Rich Dad, Poor Dad <\/em>lessons can help you understand how you can make money without being trapped in the rat race, always competing for more while still under someone else’s control. Use the Rich Dad, Poor Dad 6 lessons to achieve financial independence<\/a>. <\/p>\n\n\n\n

Lesson 1: The Rich Don\u2019t Work For Money – Money Works for Them<\/strong><\/h3>\n\n\n\n

One of the first Rich Dad, Poor Dad<\/em> lessons is that the rich don\u2019t get rich merely by being paid higher salaries (though this is a great help). They get rich by owning things that make them more money.<\/strong><\/p>\n\n\n\n

Wealthy people use their Income to buy Assets that return more Income. Meanwhile, they minimize their spending on Expenses and buying Liabilities, to have more money to buy more Assets.<\/p>\n\n\n\n

People who don\u2019t become rich either spend all their income on expenses, or buy liabilities that increase their expenses but don\u2019t add income.<\/p>\n\n\n\n

The key to financial independence is having money that makes more money.<\/strong> You want your money to make enough money that you don\u2019t have to work anymore.<\/p>\n\n\n\n

Lesson 2: Buy Assets, Not Liabilities<\/strong><\/h3>\n\n\n\n

The key is to buy things that generate income (assets). You do NOT want to buy things that lose money over time or incur large expenses (liabilities). This is number two of the Rich Dad, Poor Dad<\/em> lessons. <\/p>\n\n\n\n

This is obvious enough. But the most deceptive investments look like assets, but are actually liabilities.<\/p>\n\n\n\n