Introduction
Rich dad poor dad is a very famous book of Robert Toru Kiyosaki. Robert T Kiyosaki is an American businessman and author. This book is based on what a rich father teaches his son. And what the Poor Father teach his son. Robert has two fathers in this book, one is rich. And one is poor. One is very educated and intelligent. He has also done Ph.D. And other has not even attended school. Both were successful in their respective careers. And one dad was financially poor. And one was one of the rich men of his city. Both had different views and thoughts. Come lets try to know about this very well. ( Rich Dad Poor Dad Review)
Summary
Robert says that, Talking about money, both fathers had a very different perspective in terms of money. One father always had the habit of saying, we cannot take it, we cannot buy it. Other one never used these words, and they also refused to use this word to Robert. He used to say that you ask yourself how you can take that thing. He believed that when you say that I cannot take it, then your mind stops working. But when you ask yourself the question, how can you afford that thing. Then the brain starts working. He did not say that one, you buy everything. He said that keep your mind active. Put your mind to work. Which will exercise your brain.
His one fathers used to say never take risk. His other father used to say that learn to manage risk. his one fathers used to say, study a lot. Take a college degree and do a secure job. Other fathers used to say. Study and learn how money works. Learn from it. Do not work for money, Put money to work for you.
Then, at the age of 9, Robert decide that he would listen to his rich dad and not poor dad and will learn about money from him. Robert’s Poor Dad was his real father. He was educated and used to work as a teacher. But Robert, who is called his rich dad. He is his friend Mike’s dad. Those who used to learn how Robert and Mike earn money. He was not well educated, yet he was one of the rich people of his city. So Robert and his friend Mike agreed to learn how his rich dad would make him money. So his rich dad told him very important lessons about money. Let’s know what that is.
Lesson no. 1
Assets and liabilities
Rich Dad told him that how much money you earn is not that important. How much money you keep for yourself is important. Let’s understand a little in detail.
You should know what assets and liabilities are. And the difference between those two should be known. Rich Dad explained them in simple language. Assets add money to their pockets. And liabilities extract money from their pockets. He mentions one thing, whether a person is literate or not, but he is definitely financially literate. And how money works does not teach in school and college. Rich people invest their money in business. Stocks, bonds. They invest their money in real estate and invest in many other places from where they continue to receive money. So this investment is assets to them. Those who generates income for them. Robert likes real estate and small company so he invests in them.
Lesson no. 2
Multiple income source
Many people have only one income source. Salary. They say that they want to be safe. For this reason, they remain dependent on salary. But they do not understand how big a risk it is to have a single income source. There are three types of income. Ordinary income, Passive income, Portfolio income. Rich Dad often used to say to Robert that you should change your Ordinary to Passive or Portfolio Income as soon as possible.
Lesson no. 3
Focus on learning
Robert’s dad used to tell him that you should keep focusing on learning. You have to train your mind to financially. Your mind will be financially trained only then he will be able to see the opportunity of the economic form. You must first focus on the Learn and not on the earn.
Lesson no 4
Risk management
One day while Robert was passing through a road, he saw a board in a house there. Then the economy was going bad. The stock market was also down and real estate was also suffering. He saw that the board was engaged for a long time. He talked to the owner of that house for how much would you sell this house? Robert liked that house very much and bought it for 20 thousand dollars. And when the economy grew, he sold the house for 60 thousand dollars. He also made a similar deal with an apartment. So with this Robert explains how he got success in the deal. But they say that for this you should have good financial knowledge. Only then you will be able to crack a good deal.
Lesson no. 5
Money work for rich people.
Poor and middle class work for money, while money work for rich people. Rich people keep on increasing their asset column. The return from the income they put in the assets they again put in assets. This is how money works for them.
Lesson no 6
Mind Your Own Business
Robert began his career by selling photocopiers for Xerox. Using his revenue, he invested in real estate. In the space of only 3 years, the revenue generated from his investment in real estate exceeded his salary. He then decided to leave the company and take care of his own business.
He knew that getting out of the rat race was the only solution.
These were some of the lessons in this book that Rich Dad teaches Robert.
Some important quotes we all need to know.
”Winners are not afraid of losing. But losers are. Failure is part of the process of success. People who avoid failure also avoid success.” ( Rich Dad Poor Dad Review )
Rich Dad Poor Dad
”It’s not what you say out of your mouth that determines your life,it’s what you whisper to yourself that has the most power”
Rich Dad Poor Dad
“A mistake is a signal that it is time to learn something new, something you don’t know before.”
Rich Dad Poor Dad
“If you want to go somewhere, it is best to find someone who has already been there.”
Rich Dad Poor Dad
“Failure inspires winners. And failure defeats losers. It is the biggest secret of winners. It’s the secret that losers do not know. The greatest secret of winners is that failure inspires winning; thus, they’re not afraid of losing.”
Rich Dad Poor Dad
Insight/Review
Everyone should read this book. If a children want to learn the importance of money in their childhood. So this book will help in telling that well.There are so many examples in this book, I cannot tell. I do not think that there can be a flaw in this book. However, in some places, their investment technique may not work. But this should be reduced everywhere except in such places. And I liked the character of his dad. He was a very influential person.
Rating
4.8/5
Conclusion
Rich Dad, Poor Dad is an extraordinary book in its literal sense. I cannot fully express how this book changed my approach to money and most notably my perception of money.
We always think that you need money to be rich and the only remedy was to get involved in the rat race, but Robert’s rich dad showed that even a normal man can only make it when he has it. Have a vision for. Rich people continue to increase their wealth first. Return from the income that they re-put into assets. How does this money work for them. And it is that they become even more wealthy and happy.
Read all the quotes of this book. Click here.
The book is an extremely useful way of starting to think about the world and commercial opportunities differently in order to start creating wealth and I highly recommend to read this book.
Rich Dad Poor Dad Review
ABOUT THE Author
Robert T Kiyosaki is an American businessman and author. Kiyosaki is the founder of Rich Global LLC and the Rich Dad Company, a private financial education company that provides personal finance and business education to people through books and videos.
