What is the Basis of Rich Dad Poor Dad

Posted by Grace under Money on August 23, 2015

Do you know what is the basis of Rich Dad Poor Dad? It’s the net worth! Is net worth the basis of great riches or the working income? A true wealthy individual is not working anymore, maybe he is working but by choice not by chance or by necessity. A wealthy man knows that a net worth is the basis of true wealth not working income (excerpt from Secrets of the Millionaire Mind).

There is a big difference between a working income and a net worth. We will discuss these matters one by one today. A net worth was computed or determined after we deducted the total liabilities from the total assets. While on the other part, there is a working income”. The money or income you make from your activities and efforts.


To become rich, one must focus on net worth not on working income. Maybe you are thinking, how can I increase my net worth if I have no working income. That’s a great question.

Working income is very important especially if you are just starting out to your goal on becoming rich. But, your working income should spend wisely on the things that will surely help you increase your net worth. I suggest you read Rich Dad, Poor Dad of Robert T. Kiyosaki and Secrets of the Millionaire’s Mind by T. Harv Eker

Save and Invest

By saving and investing, your net worth will increase overtime. Assuming an individual is earning $2,000 per month. He spend that amount of money in his necessities such as food, shelter and other things. If he will set aside at least $100 per month, his net worth will increase. A $100 monthly investment is a great start. Through compound interest, that amount of money can turn into hundreds of thousands or even millions after many years.

Now, if you are an ordinary employee and your plan is to get rich. The solution is to start a business. If you don’t want to start your own business because you love your job, the solution in getting rich is to invest some portion of your salary.

There are different types of investments you can choose from. But it depends in your risks appetite and investment goal. Try to study asset allocation strategies, investing money in stocks and mutual funds.

I know you read already Rich Dad Poor Dad, it talks about the difference between rich dad and poor dad. Rich dad invest money to make the money work for him, while poor dad is working for other people!

It’s not too late, if your goal is to retire rich. Start now, the small amount of money you are investing every month can help you achieve your financial goal. But, do not focus on working income. You must understand that rich people are increasing their net worth through investing their hard-earned money.

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