Robert Kiyosaki’s book, Rich Dad Poor Dad, has become a prominent personal finance book since its publication in 1997, selling over 32 million copies in more than 51 languages across 109 countries. It contrasts the financial philosophies of Kiyosaki’s two father figures, his own father, the “poor dad,” and the father of his best friend, the “rich dad.” Through these lenses, Kiyosaki presents theories on investing, real estate, wealth creation, and increasing financial intelligence.
With unconventional wisdom about money and investing, its principles hold significant relevance for the personal finance of entrepreneurs. Could you escape the rat race faster than everyone you know? Applying the teachings from this book might make it possible. Use these 5 prompts in the same ChatGPT window, edit the square brackets to explain your context, and begin the journey of transforming the 5 main lessons into practical business strategies.
Rich Dad Poor Dad: ChatGPT prompts to apply its lessons
Establish your financial education
School did not teach you about finance, and your parents might not have either. Inflation, borrowing, interest rates, owning a home, investing and saving are all concepts that take wildly different meanings depending on who explains them. This means you take on the limiting beliefs and financial illiteracy of the teacher, unless you intentionally seek an impartial definition. Use ChatGPT to apply the Rich Dad Poor Dad concept of financial education to your existing situation, whatever money decisions you’re about to make. Let go of the outdated things you’ve been taught about money, because they’re likely not serving you right now.
“I’ve been influenced by various teachings and beliefs about finance from school, family, and society, which may not align with current financial wisdom. Based on the principles of financial education from ‘Rich Dad Poor Dad,’ can you provide guidance on how to approach and rethink key financial concepts like inflation, borrowing, interest rates, home ownership, investing, and saving? My current financial situation involves [describe your current financial situation or upcoming money decisions]. Help me shed any outdated beliefs you suspect I might have and apply practical, updated financial strategies to my situation. The goal is to gain a clearer, more effective understanding of managing and growing my finances in today’s economic environment.”
Understand assets and liabilities
Kiyosaki defines assets as things that put money into your pocket (like investments or income-generating properties) and liabilities as things that take money out of your pocket (like debts or expenses). He said that the wealthy buy assets, while the poor and middle-class accumulate liabilities. Understanding the difference is key. The book explains that, contrary to popular belief and media manipulation, a home that you own is a liability, not an asset. Debunk any myths you might be holding onto and understand how what you own and do splits into assets and liabilities according to Kiyosaki’s teachings
“Based on Robert Kiyosaki’s definitions in ‘Rich Dad Poor Dad,’ I’d like to categorize my financial holdings into assets and liabilities. Here is a breakdown of my financial information: [provide a detailed list of your financial holdings, including investments, properties, debts, expenses, etc.]. Analyze this information and classify each item as either an asset (something that puts money into my pocket) or a liability (something that takes money out of my pocket), according to Kiyosaki’s teachings. This analysis will help me better understand my financial standing and guide me in making decisions that align with accumulating assets rather than liabilities.”
Work for assets, not money
Kiyosaki believes that the middle class works for money (salaries and wages), but the rich have their money work for them through investments, businesses, and other income-generating ventures. Which are you doing? Based on what it knows about your situation so far, ask ChatGPT to suggest ways in which you could switch your efforts and ensure your money works for you, not the other way around. Apply the book’s teachings to make real change, starting with this simple prompt.
“Following the principles from ‘Rich Dad Poor Dad,’ I’m interested in shifting my focus from working for money to having my money work for me. Based on what you know about my current financial situation and assets [briefly recap your current financial situation and assets], can you suggest ways I might realign my efforts towards building income-generating investments or ventures? I’m looking for practical advice on transitioning from primarily earning through salaries and wages to generating passive income through investments, businesses, or other means. The goal is to apply Kiyosaki’s teachings to initiate real change in how I manage and grow my finances.”
Plan to escape the rat race
Most people are stuck in the rat race. As their income increases, so do their expenses. They become reliant on their monthly salary and dependent on their jobs to keep their lifestyle at the same level. Earning and spending in this way is a trap. The Rich Dad Poor Dad method can help you break out of this cycle and work towards true wealth. Use this prompt to figure out how much you need your assets to generate in order to become financially free faster. You might be closer than you think.
“In line with the principles in ‘Rich Dad Poor Dad,’ I want to break free from the rat race by having my assets generate enough income to cover my expenses. Here’s my current monthly income: [insert monthly income], income from assets: [insert asset income], and my monthly expenses: [insert monthly expenses]. Based on these figures, calculate how much more I need my assets to generate each month to reach financial freedom. The goal is to determine the point at which my asset income surpasses my expenses, allowing me to be financially independent of my regular job income.”
Cultivate an entrepreneurial mindset
Traditional employment won’t make you truly rich. Kiyosaki advises that instead of seeking regular work with a monthly paycheck, you should consider becoming an investor or entrepreneur. Perhaps you keep your job, but you channel your income into assets to escape the rat race and not need your salary. This path is the only way to control your financial destiny. If you already run a business, you simply need to grow it and make it make more money to spend on assets or reinvest for further growth. Either way, cultivate an entrepreneurial mindset and see what you can achieve.
“I’m inspired by ‘Rich Dad Poor Dad’ to further develop my entrepreneurial mindset and take greater control of my financial destiny. Can you suggest specific strategies for expanding and optimizing my current business [describe your business] to increase its profitability? I’m interested in ways to enhance revenue generation and invest in assets that can provide passive income. Additionally, provide insights on how to reinvest profits effectively to spur further business growth and wealth accumulation. The objective is to refine my approach to entrepreneurship, focusing on building wealth through smart business operations and investments.”
Rich Dad Poor Dad: ChatGPT prompts to apply its lessons
Apply the teachings from this popular book and transform your finances one concept at a time. Upgrade your financial literacy, revisit terminology you might have misunderstood, and get new ideas for the way forward using these five prompts. Establish your financial understanding, including categorizing your assets and liabilities in the most helpful way, then understand how to work for assets instead of money. Make your plan to escape the rat race and ensure your mindset doesn’t hold you back. Plenty of people have benefitted from this bestselling book, now it’s your turn to try out the methods.
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