Rich Dad Mentality V. Poor Dad Mentality

By Korabi On July 6, 2010 Under Earn Online

This is the second in a series of articles based on the groundbreaking best-seller â??Rich Dad, Poor Dadâ? written by Robert Kiyosaki. As stated in the first article, the book compares the mindset of Kiyosakiâ??s fatherâ??who held several degrees and an important position in the government, but struggled financially–, with the mindset of his best friendâ??s fatherâ??who never even finished high school but left his son a financial empire. In his book, Kiyosaki explains that the mindset held by each of these two men, his â??poor dadâ? and his â??rich dadâ?, was largely responsible for each manâ??s financial destiny.

The following quote by T. Harv Eker, author of â??Secrets of the Millionaire Mindâ?, refers to the concept of a rich personâ??s mindset: â??Rich people have a way of thinking that is different from poor and middle class people. They think differently about money, wealth, themselves, other people, and life.â? Kiyosaki expounds this same principle in â??Rich Dad, Poor Dadâ?.

Below you will find seven mayor differences between the â??poor dadâ? and the â??rich dadâ? mentality:

1. The â??poor dadâ? mentality states that your wealth depends on your family of origin. That is, to be rich you have to be born rich. â??Rich dadâ? espoused the view that being rich or poor is something that you learn. You can learn to think in ways that will support you, and you can raise your financial IQ by reading books on finance, talking to financially successful people, and attending seminars and lectures. When you have the right belief system and the necessary knowledge on how to create, build, and protect wealth, you will become rich even if you were not born into a wealthy family.

2. â??Rich dadâ? taught Kiyosaki that he should get a job to learn and to acquire the necessary skills so that he could go on to start his own business. â??Poor dadâ? saw his job as his source of income for life. While â??rich dadâ? taught Kiyosaki to strive to become financially independent, â??poor dadâ? taught him to depend on his employer for his financial well being.

3. When faced with an opportunity, â??rich dadâ? would ask himself: â??How can I afford this?â? This forced his mind to think and to come up with creative solutions to be able to take advantage of the opportunity that had presented itself. Instead, when presented with an opportunity, â??poor dadâ? would dismiss it by saying: â??Itâ??s too bad I canâ??t afford this.â?

4. While â??poor dadâ? stressed scholastic education, â??rich dadâ? always stressed financial education.

5. For â??rich dadâ? the main cause of poverty or financial struggle was self-inflicted fear and ignorance. â??Poor dadâ? blamed the economy and the job market. That is, â??rich dadâ? always took responsibility for himself and felt that he created his circumstances, while â??poor dadâ? often felt like a victim of the outside world.

6. As for risk taking, â??rich dadâ? taught Kiyosaki to learn to manage risk. â??Poor dadâ? taught him that when it came to money, risk was something that should be avoided and to always play it safe.

7. â??Rich dadâ? taught Kiyosaki that failing was simply part of the process and that he should learn from his mistakes and move on. â??Poor dadâ? attached great stigma to failure and was therefore afraid of making mistakes.

Study the seven examples above in order to begin to develop a clear concept of the difference between a rich and a poor mindset. You can find out more on how rich people think by reading books such as those found in the â??Rich Dad, Poor Dadâ? series and by talking to people who have succeeded financially.