The book Rich Dad Poor Dad isn't for the rich, and this book isn't for the poor. It’s for the selected few who want to learn about money, who want to learn about managing money, and who want to learn about growing money.
The book is about building a mindset to take care of your finance. And it does a good job of it. Rich Dad, Poor Dad has six lessons, ten pieces of advice and several other to-dos to get you a step forward with money management.
And I’m presenting all the learnings as 97 Rich Dad Poor Dad book quotes. Check them out.
Table of Contents
- Introduction to Money
- The Rich Don’t Work for Money
- Why Teach Financial Literacy?
- Mind Your Own Business
- The Power of Corporations
- The Rich Invent Money
- Work to Learn – Don’t Work for Money
- Overcoming Obstacles
- Getting Started
- Still Want More? Here Are Some To-Do’s
Introduction to Money
- One dad said, "The love of money is the root of all evil." The other said, "The lack of money is the root of all evil."
- By saying the words “I can’t afford it.” your brain stops working. By asking the question “How can I afford it?” your brain is put to work.
- People really do shape their lives through their thoughts.
- There is a difference between being poor and being broke. Broke is temporary. Poor is eternal.
- Money is one form of power. But what is more powerful is financial education.
The Rich Don’t Work for Money
- The poor and the middle-class work for money. The rich have money work for them.
- Most people only talk and dream of getting rich. The most important thing is to do something. You’re only poor if you give up.
- If you can’t make up your mind decisively, then you’ll never learn to make money anyway.
- Opportunities come and go. Being able to know when to make quick decisions is an important skill.
- Most people want everyone else in the world to change but themselves. It’s easier to change yourself than everyone else. Realize that you’re the problem, change yourself, learn something and grow wiser.
- When it comes to money, most people want to play it safe and feel secure.
- More money will not solve problems. Most people, given more money, only get into more debt.
- It’s fear that keeps most people working at a job: the fear of not paying their bills, the fear of being fired, the fear of not having enough money, and the fear of starting over.
- People’s lives are forever controlled by two emotions: fear and greed.
- People become a slave to money – and then get angry at their boss.
- Money is running their lives. Money is in control of their emotions and their souls.
- Be truthful about your emotions and use your mind and emotions in your favour, not against yourself.
- Fear and desire can lead you into life’s biggest trap if you’re not aware of them controlling your thinking.
You may also like: Personal Finance Stories and Examples from Psychology of Money
Why Teach Financial Literacy?
- It’s not how much money you make. It’s how much money you keep.
- If people are prepared to be flexible, keep an open mind and learn, they will grow richer and richer despite tough changes.
- If you want to be rich, you need to be financially literate.
- Accounting is possibly the most confusing, boring subject in the world, but if you want to be rich long-term, it could be the most important subject.
- Rich people acquire assets. The poor and middle class acquire liabilities that they think are assets.
- You must know the difference between an asset and a liability, and buy assets. An asset puts money in my pocket. A liability takes money out of my pocket.
- Schools were designed to produce good employees, instead of employers.
- What is missing from education is not how to make money, but how to manage money.; financial aptitude. What you do with the money once you make it, how to keep people from taking it from you, how to keep it longer, and how to make that money work hard for you.
- More money seldom solves someone’s money problems. Financial intelligence solves problems.
- Too often, people count their house and savings and retirement plans as all they have in their asset column. Because they have no money to invest, they simply don’t invest.
- Treating your home as an investment, and the philosophy that a pay raise means you can buy a larger home or spend more, is the foundation of today’s debt-ridden society.
- The result in making a decision to own a house that is too expensive impacts an individual in at least three ways:
- Loss of time, during which other assets could have grown in value
- Loss of capital, which could have been invested instead of paying for high maintenance
- Loss of education, financial and otherwise
- Increased spending throws families into greater debt and into more financial uncertainty.
Mind Your Own Business
- The rich focus on their asset columns while everyone else focuses on their income statements.
- Financial struggle is often directly the result of people working all their lives for someone else. Mind your own “business.”
- A true luxury is a reward for investing in and developing a real asset.
- Keep your daytime job, but start buying real assets.
Also Read: 24 Motivational Personal Finance Quotes
The Power of Corporations
- A corporation is merely a legal document that creates a legal body without a soul. Using it, the wealth of the rich was is protected.
- The rich are not taxed. It’s the middle class, especially the educated upper-income middle class, who pays for the poor.
- If you work for money, you give the power to your employer. If money works for you, you keep the power and control it.
- Financial IQ is made up of knowledge from four broad areas of expertise:
- Accounting: Financial literacy or the ability to read numbers.
- Investing: Science of “money making money.”
- Understanding markets: Science of supply and demand.
- The law: A corporation wrapped around the technical skills of accounting, investing, and markets can contribute to explosive growth.
The Rich Invent Money
- Often in the real world, it’s not the smart who get ahead, but the bold.
- our financial genius requires both technical knowledge as well as courage.
- Financial intelligence is simply having more options. If the opportunities aren’t coming your way, what else can you do to improve your financial position?
- Why would you want to increase your financial intelligence? Because you want to be the kind of person who creates their own luck.
- Great opportunities are not seen with your eyes. They are seen with your mind.
- The single most powerful asset we all have is our mind. If it is trained well, it can create enormous wealth seemingly instantaneously.
- Investments come and go. The market goes up and comes down. Economies improve and crash. The world is always handing you opportunities of a lifetime, every day of your life.
- It is not gambling if you know what you’re doing. It is gambling if you’re just throwing money into a deal and praying.
- The problem with “secure” investments is that they are often sanitized, that is, made so safe that the gains are less.
- We learn by making mistakes. The same is true for getting rich.
- If you want to be the investor type, you need to develop three main skills:
- Find an opportunity that everyone else missed
- Raise money
- Organize smart people
Work to Learn – Don’t Work for Money
- Job security meant everything to my educated dad. Learning meant everything to my rich dad.
- You want to know a little about a lot.
- It’s best to go broke before 30. You still have time to recover.
- The reason so many talented people are poor is because they focus on building a better hamburger and know little to nothing about business systems.
- The most important specialized skills are sales and marketing. The ability to sell – to communicate to another human being – is the base skill of personal success.
- Communication skills such as writing, speaking, and negotiating are crucial to a life of success.
- There are five main reasons why financially literate people may still not develop abundant asset columns:
- Bad habits
- The fear of losing money is real. Everyone has it. Even the rich. But it’s not having fear that is the problem. It’s how you handle fear.
- We’re all heroes at something, and cowards at something else.
- It’s okay to be fearful. It’s okay to be a coward when it comes to money. You can still be rich.
- In Texas, everything is bigger. When Texans win, they win big. And when they lose, it’s spectacular.
- Texans have a saying, “If you’re going to go broke, go big. You don’t want to admit you went broke over a duplex.”
- People are so afraid of losing that they lose.
- For most people, the reason they don’t win financially is because the pain of losing money is far greater than the joy of being rich.
- Failure inspires winners. Failure defeats losers.
- If you have little money and you want to be rich, you must first be focused, not balanced.
- Put a lot of your eggs in a few baskets and FOCUS: Follow One Course Until Successful.
- Our doubts often paralyze us.
- The world is filled with Chicken Littles running around yelling, “The sky is falling! The sky is falling!” And they are effective. It often takes great courage to not let rumours and talk of doom and gloom affect your doubts and fears.
- A savvy investor knows that the seemingly worst of times is actually the best of times to make money. When everyone else is too afraid to act, they pull the trigger and are rewarded.
- So when you’re in doubt and feeling a little afraid, just do what Colonel Sanders [of KFC] did to his little chicken. He fried it.
- What is the cure for laziness? A little greed.
- The words “How can I afford it?” opens up possibilities, excitement, and dreams.
- Without that little greed, the desire to have something better, progress is not made.
Overcoming Bad Habits
- I still pay myself first. Even if I’m short of money. My asset column is far more important to me than the government.
- After paying myself, the pressure to pay my taxes and the other creditors is so great that it forces me to seek other forms of income. The pressure to pay becomes my motivation.
- I’ve worked extra jobs, started other companies, traded in the stock market, anything just to make sure those guys don’t start yelling at me. That pressure made me work harder, forced me to think, and all in all, made me smarter and more active when it comes to money.
- What I know makes me money. What I don’t know loses me money.
- Every time I have been arrogant, I have lost money. Because when I’m arrogant, I truly believe that what I don’t know is not important.
- There is gold everywhere. Most people are not trained to see it.
- I offer you the following 10 steps as a process to develop your powers, powers over which only you have control:
- Find a reason greater than reality: the power of spirit
- Make daily choices: the power of choice
- Choose friends carefully: the power of association
- Master a formula and then learn a new one: the power of learning quickly
- Pay yourself first: the power of self-discipline
- Pay your brokers well: the power of good advice
- Be an Indian giver: the power of getting something for nothing
- Use assets to buy luxuries: the power of focus
- Choose heroes: the power of myth
- Teach and you shall receive: the power of giving
- Having no money should not be an excuse to not learn. But that is a choice we all make daily: the choice of what we do with our time,
- Invest first in education.
- Be true to yourself and to be willing to not go along with the crowd.
- Smart investors don’t time the markets. If they miss a wave, they search for the next one and get themselves in position.
- Profits are made when you buy, not when you sell.
- In today’s fast-changing world, it’s not so much what you know anymore that counts. It’s how fast you learn.
- The three most important management skills necessary to start your own business are:
- Management of Cash flow
- Management of People
- Management of Personal time
- Don’t get into consumer debt in the first place.
- If your brokers are professionals, their services should make you money. And the more money they make, the more money you make. Be fair, and most of them will be fair to you.
- I have lost money on many occasions, but I only play with money I can afford to lose.
- To be the master of money, you need to be smarter than it.
- Heroes do more than simply inspire us. Heroes make things look easy. Making it look easy convinces us to want to be just like them. “If they can do it, so can I.”
- Whenever you feel short or in need of something, give what you want first and it will come back in buckets. That is true for money, a smile, love, or friendship.
Still Want More? Here Are Some To-Do’s
- Here’s a to-do to get started:
- Stop doing what you’re doing. In other words, take a break and assess what is working and what is not working.
- Look for new ideas. For new investing ideas, I go to bookstores and search for books on different and unique subjects.
- Find someone who has done what you want to do. Take them to lunch and ask them for tips and tricks of the trade.
- Take classes, read, and attend seminars. I search newspapers and the Internet for new and interesting classes, many of which are free or inexpensive.
- Make lots of offers. When I want a piece of real estate, I look at many properties and generally write an offer. If you don’t know what the right offer is, neither do I.
- Jog, walk, or drive a certain area once a month for 10 minutes. I have found some of my best real estate investments doing this. I will jog a certain neighbourhood for a year and look for change.
- Shop for bargains in all markets. Consumers will always be poor. When the supermarket has a sale, say on toilet paper, the consumer runs in and stocks up. But when the housing or stock market has a sale, most often called a crash or correction, the same consumer often runs away from it.
- Look in the right places.
- Look for people who want to buy first. Then look for someone who wants to sell.
- Think big. Retailers love giving volume discounts, simply because most business people love big spenders. So even if you’re small, you can always think big.
- Learn from history. All the big companies on the stock exchange started out as small companies.
- Action always beats inaction.
- Money is only an idea.
- If you want more money, simply change your thinking. Every self-made person started small with an idea, and then turned it into something big.
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