Habits from ‘Rich Dad Poor Dad’ that will change your life

If you’ve ever read the book Rich Dad Poor Dad, you’ll know that it makes some very bold claims about the habits of those who become rich and those who become poor. While it is obviously true that these are sweeping generalizations and not all people fit into the categories mentioned in the book, there are some important habits shared by wealthy people that can be applied to your own life. Here are four key habits from Rich Dad Poor Dad that will change your life if you embrace them as your own.

1) Spend less than you earn

One of the most important lessons from Rich Dad Poor Dad is to spend less than you earn. This simple concept can be difficult to implement, but it’s crucial if you want to build wealth. Here are a few tips for how to start living this habit:

– Keep track of all income and expenses in an app like Mint or Quicken

– Write down every purchase before making it so you know how much money you have left for the month

– Increase your savings rate by 1% every time you get a raise or windfall. The goal should be 50% within 10 years.

– Pay off credit card debt as quickly as possible to avoid accumulating interest charges. Once paid off, pay off any high-interest loans next (like student loans). Then focus on retirement accounts and investments such as stocks and bonds.

2) Save, invest and use the leverage

1. The first habit is to save money. You should have a savings account that you contribute to regularly. This will help you in two ways: it will give you a cushion to fall back on in case of an emergency, and it will also allow you to start investing sooner.

2. The second habit is to invest your money wisely. This means looking for opportunities to grow your money, such as through stocks, real estate, or mutual funds.

3. The third habit is to use leverage. Leverage is the act of using other people’s money to make more money. Leverage can be a great way to boost your income without putting up any more capital yourself. For example, by using someone else’s cash as a down payment, you can purchase investment properties and increase your returns exponentially with each property purchase.

4. Finally, pay yourself first.

3) Think differently about risk and reward

In Rich Dad Poor Dad, Robert Kiyosaki breaks down the fundamental differences between the way the rich and the poor think about money. The rich, he says, see money as a tool to be used to make more money, while the poor see it as something to be exchanged for goods and services. When it comes to risk and reward, Kiyosaki tells readers to never take a job where you work for somebody else, because you’ll never get paid what you’re worth. He argues that you can’t out-earn your thinking.

4) Give up the excuses

In Rich Dad Poor Dad, Robert Kiyosaki says that if you want to be rich, you have to give up the excuses. Here are four key habits that will help you do just that

1) You can’t always win: Rather than taking a big risk and potentially losing everything, take smaller risks and make incremental progress.

2) You don’t need money to make money: It’s not how much money you start with that matters; it’s what you’re able to accomplish with what you’ve got.

3) You must keep investing in yourself: The best way to ensure financial security is to educate yourself and learn new skills regularly. And

4) Get out of debt as soon as possible: The more interest you pay on credit cards or student loans, the less likely you’ll ever get ahead financially. Put an end to compounding interest by attacking your debts head-on! Consider paying off high-interest rates first, because the longer you wait, the more interest charges will accrue. Get on top of any necessary monthly payments ASAP – like your rent/mortgage – because they carry low-interest rates and usually cannot be discharged through bankruptcy. Make sure you have a plan for handling emergencies by creating a budget for unexpected expenses such as car repairs or health care bills.