Robert T. Kiyoski and Sharon Lechtar
In the book Rich Dad Poor Dad, the author has focused on the importance of financial knowledge and its use in practice for financial freedom. Following are 25 different mindsets of Rich Dad and Poor Dad.
Poor Dad Mindset
Rich Dad Mindset
- Fear to lose money
- Financial struggle
- Prioritize paying the bills first
- Spend what he earns
- Says “I cannot afford this”
- Objective of life: Study well, get a good job for continual income
- Follows rat race
- Spends more on liability (car, clothes, accessories, luxury items, etc)
- Works for money
- Buy luxury first
- Works for other, no time for self-learning or investmen
- Has financial knowledge but lack of action
- Buys liabilities but hesitate to take risk for same money
- Settle for a high paid job
- Pay others first (tax beyond me)
- Protects personal wallet and save what is left
- Don’t know / cannot differentiate between asset and liability
- Pays more tax (Earn -Tax -Spend)
- Earns degrees to reduce risk
- Earn more, spend more
- Spends on liability, not on education that teaches financial growth
- More listening, more talking
- Worries about bills and other spending
- Find ways for Active Income
- Leave bills when he dies
- Lose money to earn money
Mind over finance
Prioritize self-investments
Save and invest what he earns
Says “How can I afford this?”
Objective of life: To become someone who gives job to others
Gets out of the rat race
Spends more on assets (real estate, stocks, etc) rather than liability
Let money work for him
Buy luxury later
Works for other but also works for own business
Has financial knowledge and uses it to an action
Take risk, buy asset and reinvest. Even though he fails, takes a risk again
Never work for money, work to learn
Pay self-first (assets beyond tax)
If he needs something, he first gives something
Easily differentiates asset and liability, and prioritized assets
Pays less tax (Earn – Spend / Invest – Pay Tax)
Earns information to reduce risk
Earn more, spend less
Is not afraid to spend on education that pays back
Listening is more important than talking (Two ears, one mouth is purposefully given)
Thinks and take an action to learn accounting, investing and understand market
Find ways for Passive Income
Leave assets when he dies