Thread by @idyllicfinance

5 mental models from the book Rich Dad Poor Dad 📚

//Thread//

Rich Dad Poor Dad is one of the most influential personal finance books ever created.

It goes over the basics of how rich people use money to:

1. Invest
2. Build wealth
3. Achieve financial freedom

All of this may seem complex, but it's simpler than you think.

1. Educate yourself on basic financial literacy

Head to @Investopedia and study these terms:

- Assets
- Income
- Liabilities
- Expenses
- Net worth

Understanding these concepts is the first step to becoming rich.

Study. Understand. Apply.

2. Go broke buying assets

Rich people love buying:

- Stocks
- Real estate
- Cryptoassets

Why? Because these things put money in their pockets.

Go broke buying assets and make your money work for you.

Index funds are my favorite asset. I like index funds because they're:

- Cheap
- Passive
- Diversified
- Outperform 99% of investors
- Have an amazing track record

The path to financial freedom starts with index funds. Start investing today: gumroad.com/a/383865971/ua… #aff

3. Learn outside of school

School's primary goal is to teach you how to be a good employee.

If you want to be rich, you must educate yourself:

- Read books
- Listen to podcasts
- Watch documentaries

The knowledge you build outside of the classroom is what'll make you rich.

4. How much you make is irrelevant

It's never about how much you make. It's always about how much you keep.

You can make over $100K, but if you spend all of it, that 6 figure salary is worthless.

What matters most is how much you're able to save and invest.

5. Perspective is everything

Rich:

- "The reason I must be rich is because I have kids."
- "I need to learn how to manage risk."
- "How can I afford that?"

Poor:

- "The reason I'm not rich is because I have kids."
- "I can't take risks with my money."
- "I can't afford that."

Educate yourself on money, save aggressively, invest aggressively, and never stop learning.

Repeat these actions consistently, and you will with no doubt become wealthy.

And if you want to learn more, check out Rich Dad Poor Dad here: amzn.to/3p3n1UX #aff

Thanks for reading. If you enjoyed this thread, do 2 things:

1. Follow @idyllicfinance for more content to help you build wealth

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