How to become rich – Rich Dad Poor Dad

Before getting started we have to first understand that, there is NO such universal statement like “Only rich people do business and become milliners and other people do the job and live a normal life”.

This is the restriction that we have made for us.

There are many people who change their life applying principles in their life which are mention in the book and become rich.

Now the time comes that you have to become rich by applying these principles.

I know most of you have a question “Why only a few people get super-rich and while most people live a poor or middle-class life?”

To answer this, today we are going to learn some principles from the “Rich Dad Poor Dad” book to become rich.

So, let’s get started…

To understand it better we are going to learn about the difference between ASSETS and LIABILITIES.

ASSETS are those things that give you money or help you to make money and LIABILITIES are those things that take money from you.

For example-

Consider two friends Ram and Sham. Both are in the same company in the same position.

Whenever Ram gets their salary, he used it to buy a car, mobile, fancy dress, etc. and these are the things that feel them rich, but he doesn’t understand that all these things are liabilities, that are taking money from him and doesn’t give him profit after some time and also its value gets decreased.

But Sham is exactly opposite to him. He doesn’t buy all these things until it is necessary for him.

He uses his money in ASSETS like stocks, bonds, real estate, to improve his skills, etc. which help him to learn new things or to make money in the future.

After 2 years Sham becomes a milliner and Ram remains in the same position by giving the excuses that he has less salary.

Rich peoples always make assets, use their money to improve their skills while on the opposite, poor people attract by new things like mobile, car, etc., and invest their money to buy them.

Some people buy these things only to show their friends or relatives that they are rich, but actually, they are not investing; these all are liabilities that are taking money from them.

So, while investing make sure that you are investing in assets, not in liabilities

How cashflow works?

Now we will understand the cashflow of poor, middle-class, and rich people.

So whenever poor people get their income, he uses it for his necessary things like to buy food, pay bills, pay rent, and for other necessary things.

Middle-class people use their money the same as poor class people but in extra he uses some money for liabilities. Sometimes middle-class people think that their home is an asset but it is not.

It doesn’t give you money until you give it for rent.

And rich people get their money and from that money, he makes his assets and after that, he uses the money that he gets from his assets.

That why he becomes richer because his income sources get an increase

Most people give the reason that he is poor because of his less salary. But actually, the salary is not the main problem. 

If your salary gets increase then more salary attracts new things like branded phone, car and all these are again the liabilities. 

So, you need to maintain your cashflow like rich people to become rich. 

Next, stay financially healthy by spending your time and investing as much of your money as possible in assets and you will get a very surprising result. 

Start from today itself investing in assets. I know it will be a little tough for to you change your habits, but once you start it will become your habit and you will enjoy it. 

Paying yourself first before others

This is the most fundamental rule of personal finance. This is a very simple but effective principle to solve your financial problem.

So, let’s understand how this principle works.

Basically, paying yourself first before others rule says that you have to pay some amount of money to yourself first before others.

For example –

If Ram has Rs.25000 salary then every time when he gets his salary, he has to give Rs.3000 to himself first, and then he can use other money for his other expenses like paying bills, home rent, grocery bill, EMI, Bank loan, light bill, etc.

By doing this you will save money regularly and you don’t need to face any financial problem.

So, whatever your salary doesn’t matter anymore, you will save more money at the end of the year.

So, you can now invest this money into assets and use the money produced by your assets. But make sure that you have to pay yourself first before others.

Poor Vs Rich

Everyone is listening from his parent from childhood that he has to become an engineer, doctor, etc. or you have to make sure that your marks and college are good enough to get a job.

All these things we are listening from our parents, but have you listened from your parent that you have to become an investor, businessman, milliners, or create your own company. Very rarely some parents said that.

Actually, this is not their fault also because whatever they have learned from his childhood, exactly what they are saying to us to do.

Even our school or college also we don’t teach financial knowledge.

And these are the points where poor and rich get differentiate. Many people play safe, don’t take any risk, and live a normal life.

The primary reason the majority of the poor and middle class are fiscally conservative is that they have no financial foundation. They have to cling to their jobs and play it safe. They can’t afford to take risks.

In Rich Dad Poor Dad, author Robert Kiyosaki said that –

My poor dad often said, ‘I’d rather be happy than being rich. My rich dad said, why not both?

– Robert Kiyosaki

This is how the mentality of rich people.

Also, Bill Gates tells the same thing that –

“If you are born poor, it’s not your mistake, but if you die poor it’s your mistake”

So, change your mentality, thinking, and apply these principles to become rich.


I think you got a clear idea that what you have to do. Work on your assets rather than liabilities.

Now you have to change your thinking. Shift from consumer mentality to investor mentality.

Learn how, when, and where to buy by investing in your education. Think bigger to get richer, because small thinkers don’t get the big breaks.

Most people only look for what they can afford, so buy a bigger pie and cut it into pieces by finding a buyer first, then a seller.

And last but not the least, don’t just read – take action


  • Buy luxuries last, not first
  • Reduce expenses and liabilities
  • Aim for more valuable assets
  • You become what you study – read a lot
  • Reinvest excess cash generated by assets

These are some principles/points that I learned from Robert Kiyosaki’s book “Rich Dad Poor Dad“. This is the first book that changes my mind and helps me to invest in assets.

The goal of Rich Dad Poor Dad is to motivate you to develop your own unique path to financial freedom

This book is available in both Hindi and English format. If you want to read more about this book then BUY this book from the below link. You can also listen to audiobooks of this book. This will be available on amazon audible.

If you like these principles then write your comments and share them with your friends and tell me which topic/book do you want for the next blog.

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