Rich Dad Poor Dad: my takeaway

Rich Dad Poor Dad is a book written by Robert Kiyosaki, The book is about Kiyosaki having two Dad’s when he was young, one was poor (his real dad) and the other was Rich (his dad’s friend), both have a significant different views of life.

for example, One dad recommended, “Study hard so you can find a good company to work for.” The other recommended, “Study hard so you can find a good company to buy.”

This book focuses more on making one thinks like an investor, unveiling one’s potential, characters, and beliefs of money towards life.

The main lesson I Learnt From The Book

• The rich don’t work for money, they make money work for them.
• Rich people acquire assets, The poor and middle class acquire liabilities.
• If you want to be rich, you need to be financially literate.
• Minding one’s business.

My Summary From The Book (Rich Dad Poor Dad

The Rich Don’t Work for Money

• “The poor and the middle class work for money.” “The rich have money work for them.”,

• “Keep your daytime job, be a great hard-working employee, but keep building that asset column.”

• “As job is really a short-term solution to a long-term problem.”

He further said the main reason why many are poor is because of fear, emotion, and desire.

• “Just know that it’s fear that keeps most people working at a job. The fear of not paying their bills. The fear of being fired. The fear of not having enough money. The fear of starting over. That’s the price of studying to learn a profession or trade, and then working for money. Most people become a slave to money… and then get angry at their boss.”

• “The main cause of poverty or financial struggle is fear and ignorance, not the economy or the government or the rich. It’s selfinflicted fear and ignorance that keeps people trapped.

• If you don’t first handle fear and desire, and you get rich, you’ll only be a high-paid slave.”

• “Learn to use your emotions to think, not think with your emotions.

He said Schools only teaches students how to work for money, but fails to teach them how to make money work for them.

• “If schools taught people about money, there would be more money and lower prices, but schools focus only on teaching people to work for money, not how to harness money’s power.”

• “Look, school is very, very important. You go to school to learn a skill or profession so as to be a contributing member of society. Every culture needs teachers, doctors, mechanics, artists, cooks, business people, police officers, firefighters, soldiers. Schools train them so our culture can thrive and flourish,” said rich dad. “Unfortunately, for many people, school is the end, not the beginning.”

Why Teach Financial Literacy?

Robert Kiyosaki talks about the importance of being financially literate.

• “If you want to be rich, you need to be financially literate.”… illiteracy, both in words and numbers, is the foundation of financial struggle.

• Intelligence solves problems and produces money. Money without financial intelligence is money soon gone.

• Financial Aptitude is knowing what you do with the money once you make it, how to keep people from taking it from you, how long you keep it, and how hard that money works for you.

• Most people fail to realize that in life, it’s not how much money you make, it’s how much money you keep.

He further talk about knowing the different between asset and liability.

• “Rich people acquire assets. The poor and middle class acquire Liabilities.

Mind Your own Business

• To become financially secure, a person needs to mind their own business. Your business revolves around your asset column, as opposed to your income column.

• The primary reason the majority of the poor and middle class are fiscally conservative-which means. “I can’t afford to take risks”-is that they have no financial foundation. They have to cling to their jobs. They have to play it safe.

He talk about some assets one can consider buying, according to Kiyosaki, real assets fall into several different categories:

• Stocks.
• Bonds.
• Mutual funds.
• Income-generating real estate.
• Notes (lOUs).
• Royalties from intellectual property such as music, scripts, patents.
• And anything else that has value, produces income or appreciates and has a ready market.

Robert Kiyosaki later talk about Financial IQ,which he said it’s made up of knowledge from four broad areas of expertise.

• Accounting
• Investing
• Understanding Market
• Law

he also talk about the main management skills needed for success

• The management of cash flow
• The management of systems (including yourself and time with family)
• The managment of people

he further talk on why people that are financial literate may still face financial challenge, They are five main reason why financial literate people may still not develop abundant asset columns

• Fear
• Cynicism
• Laziness
• Bad habits
• Arrogant

According to kiyosaki, he said 10 steps required to develop a God-given powers are as follows

• Need A reason greater than reality
• choose daily
• Invest in Education
• Choose friends carefullly
• Master a Formula and then learn a new one
• Pay your self first
• Pay your brokers well
• Be an indian giver
• Asset buys luxuries
• The need for hero
• Teach amd you shall reveive.

Conclusion

I hope you get something from the summary, while this is mere summary of what I think is best idea that I learnt from the book, you may want to consider getting whole book.

Thanks for reading