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How We Handle Money According to Robert Kiyosaki

Robert Kiyosaki argues that most people grow up with a traditional view of money passed down from their parents, especially if they come from a middle-class background. He calls this way of thinking "the poor dad's path" — even if the father isn't literally poor, he follows a financial pattern that doesn't lead to freedom.

What we usually learn from our parents:

• Go to school, get good grades.

• Get a secure job with a steady paycheck.

• Work hard.

• Buy a house (usually with a mortgage).

• Save money in the bank.

• Pay off debts.

• Rely on a pension.

This often leads to getting stuck in the rat race:

• You work to earn money → earn more → spend more → take on more debt → need to work even more.

Kiyosaki calls this living paycheck to paycheck, even if you earn a good salary.

Escaping the Rat Race – Think Like the "Rich Dad"

Kiyosaki's "rich dad" taught him that you don't get rich by working hard — but by learning how money works and building assets that generate passive income.

This new mindset requires:

1. Financial education
   Learn the difference between assets and liabilities. Understand investments, business, and cash flow.

2. Buy assets, not liabilities
   An asset puts money in your pocket each month (like rental properties, stocks, businesses), while a liability takes money out (like a financed car or large loans).

3. Build passive income
   Aim for income that's not tied to your time. Examples: dividends, rental income, royalties, digital products.

4. Work to learn, not just to earn
   Take jobs that teach you valuable skills such as sales, marketing, investing, or leadership — even if they don't pay well at first.

5. Make money work for you
   Instead of trading time for money, learn to put your money to work. Invest wisely.

Summary: From Rat Race to Freedom

Traditional Path (Poor Dad) Alternative Path (Rich Dad)
Work for money                                                                       Make money work for you
Consume and accumulate debt                                               Invest in assets
Save and rely on a pension                                                      Create passive income
Seek security                                                                            Seek knowledge and freedom