Everyone dreams of being rich and financially free but most people stay stuck in money problems for years. Why? Because they keep making the same money mistakes again and again. Robert Kiyosaki, the author of Rich Dad Poor Dad, explained it best:
The difference between the rich and the poor isn’t money it’s mindset.” Rich people understand how money works. Poor people just work for money. Let’s look at the most common money mistakes poor people make and how you can easily avoid them to start building real wealth.
1. Working Only for Money
Most people believe that working hard is the only way to earn more. They spend their lives chasing a paycheck, trading time for money. But when they stop working, their income disappears.
How to Avoid It:
Start building passive income.
This could be from a small business, an online course, or investing in real estate. Learn to create systems that make money even while you sleep.
That’s how rich people build freedom by making money work for them.
Read the book Rich Dad Pood Dad to get lesson and build assets.
2. Spending More Than They Earn
Many people spend their entire paycheck before the next one arrives. They buy new clothes, phones, and dinners out just to “feel good.” The result? Empty pockets and constant stress.
How to Avoid It:
Use this simple rule: save first, spend later.
Try the 50/30/20 rule:
- 50% for needs (bills, rent, food)
- 30% for wants
- 20% for savings and investments
Spending wisely isn’t boring it’s how real wealth begins.
3. Believing a Job Equals Security
Poor Dad always said, “Get a good job and you’ll be safe.” But as Rich Dad taught, no job is truly secure. Companies change, economies shift, and your paycheck can stop anytime. Rich dad believe that make the money work for you.
How to Avoid It:
Don’t depend on one source of income.
Start a side hustle, invest in assets, or build a small online project.
True security comes when your income keeps flowing even if your job doesn’t.
4. Ignoring Financial Education
Most people go through years of school but never learn about money. They’re taught how to earn it, but not how to manage or grow it.
How to Avoid It:
Start learning now.
Read Rich Dad Poor Dad, watch financial videos, or listen to money podcasts.
Understand how assets, investing, and passive income work.
The more you learn, the less you’ll fear money.
5. Buying Liabilities Instead of Assets
Here’s one of the biggest lessons from Rich Dad Poor Dad:
“An asset puts money in your pocket. A liability takes money out.”
Most people buy things that look valuable like cars, phones, or gadgets but they lose value fast.
Rich people buy assets things that earn money, like property, dividend-paying stocks, or digital products.
How to Avoid It:
Before buying anything, ask: Will this make me money or cost me money?
Start collecting assets, not bills.
6. Being Afraid of Taking Risks
Many poor people say, “It’s too risky.” They fear losing money, so they never try and end up missing opportunities.
Rich people take risks too, but they do it smartly. They study, learn, and plan before acting.
How to Avoid It:
Take educated risks.
Start small, learn through experience, and grow step by step.
The biggest risk is doing nothing at all.
7. Not Saving or Investing Early
A common excuse is, “I’ll start saving later.” But the truth is, the earlier you start, the more your money grows.
That’s the magic of compound growth your money earning more money over time.
How to Avoid It:
Start today, even if it’s a small amount.
Use investment apps or simple savings plans.
Small beginnings lead to big results.
8. Staying Around Negative People
Poor people often surround themselves with others who complain about money or say success is impossible.
Rich Dad said it clearly:
“You become like the people you spend time with.”
How to Avoid It:
Spend time with positive, ambitious people.
Join groups that discuss ideas, business, and growth.
The right circle can completely change your mindset.
9. Saying “I Can’t” Instead of “How Can I?”
Poor people often stop themselves with excuses “I can’t afford it,” “It’s too late,” or “I’m not lucky.”
Rich people ask better questions “How can I afford it?” or “What can I learn from this?”
How to Avoid It:
Change your language and mindset.
Believe that there’s always a way to grow, earn, and learn.
Your thoughts shape your future.
10. Not Tracking Money
If you don’t know where your money goes, it will always disappear.
Many people never check their expenses or budgets, then wonder why they’re broke.
How to Avoid It:
Track your spending every week.
Use a notebook or an app to record your expenses.
Once you see where your money goes, you can control it not the other way around.
Final Thoughts: Learn, Grow, and Stay Smart
Making mistakes isn’t bad. Staying stuck in them is. Rich Dad taught that becoming wealthy starts with one simple thing financial education. Understand money. Buy assets, not liabilities. Spend less, invest more. And most importantly change your mindset. Remember this golden rule from Rich Dad Poor Dad:
“The poor work for money. The rich make money work for them.” Start fixing your money mistakes today. Small smart steps now will lead to big financial freedom tomorrow.