Hello guys! Today I read the book Rich Dad Poor Dad written by Robert Kiyosaki and the moment I finished this book I knew I had to talk a little about it and share my thoughts and opinions on this masterpiece. Robert Kiyosaki’s book is the kind of book that will change your perspective in life, it is basically a life changing book or a life saver one for those that want to know how to make more money , how to be rich or how to retire early. So, without any further ado let’s just dive straight into it:
What is “Rich dad Poor dad” about?
The book is the story of Robert Kiyosaki who has two fathers: the first was his biological father – the poor dad – and the other was the father of his childhood best friend, Mike – the rich dad. Both fathers taught the author how to achieve success but with very different approaches. It became evident to the author which father’s approach made more financial sense. Throughout the book, the author compares both fathers – their principles, ideas, financial practices, and degree of dynamism and how his real father, the poor and struggling but highly educated man, paled against his rich dad in terms of asset building and business acumen.
The author compares his poor dad to those people who are perpetually scampering in the Rat Race, helplessly trapped in a vicious cycle of needing more but never able to satisfy their dreams for wealth because of one glaring lack: financial literacy. They spend so much time in school learning about the problems of the world, but have not acquired any valuable lessons about money, simply because it is never taught in school. His rich dad, by contrast, represents the independently wealthy core of society who deliberately takes advantage of the power of corporations and their personal knowledge of tax and accounting (or that of their financial advisers) which they manipulate to their advantage.
In this book the author presents six valuable lessons which he thoroughly discusses throughout the book:
- The rich don’t work for money
- The importance of financial literacy
- Minding Your own business
- Taxes and corporations
- The rich invent money
- The need to work to learn and not to work for money
Ideas Rich Dad Poor Dad:
Here I will give you a few ides from the book but make sure to check the book out yourselves because it is a game changer.
So, what I really like about this book is that all the information helps you develop a mindset , it is not some sort of how to get rich quick or how to earn 1000$ , 10000$ over night or how to get the car you want book, no ,because such a thing won’t happen unless you are really really lucky and let’s be realistic here, if you were that lucky you wouldn’t have to search for quick fixes or topic like how to get rich quick. This book offers you something much more valuable, it helps you build a mindset and that’s the way to becoming successful.
1.The rich don’t work for money, money works for them
Let’s start by introducing to basic terms for rich people, assets and liabilities. Those two terms play a very important role in reaching your goals. Now, if you ask a person what’s their greatest asset they would say their house or their car or something along the lines but they are wrong. Let’s define assets and liabilities from a rich person’s point of view:
Assets are things that bring money in your pocket.
Liabilities are things that take money out of your pocket.
So now think again, is your house really an asset? Unless you rent it to someone or sell it for a better price it isn’t.
Examples of assets that produce money:
- A business that won’t require your presence (if it requires your presence then it is a job)
- A house or apartment that you rent to other people
- Real estate
The big difference between the poor and the rich is that the poor buy liabilities while the rich buy assets. The middle class and the poor work for money , the rich have money work for them.
2. Broke doesn’t equal poor
The author of the book says “being broke is temporary, being poor is eternal”, poor is a state of mind, it is something we decide for ourselves, poor is “I can never afford it” while broke is “how can I afford it?”. You see, the moment you decide that you can’t afford it your brain shuts down, it is perfectly normal because our brains are wired in such a way to pick the easiest way for our survival, but by asking the question “How can I afford it” you put your brain to work, you force it to think and to come out with ideas ,you force it to be creative and to struggle, you exercise your brain so it never shuts down and pick the easier way just because it is easy. Being poor is a mindset that you have to overcome. So remember, being broke doesn’t mean to be poor, broke is temporary, poor is eternal.
3. What to invest in:
THE BEST THING YOU CAN INVEST IN IS YOURSELF
An old saying goes like “As long as you live, you learn” and that is incredibly true, you will never know enough things, there will always be another skill to learn. What this book teaches you is that in order to become successful you have to know a lot about a lot of different things, you need a vast knowledge that expands on as many subject as possible. You see, the education system nowadays is flawed, it is the same it was when schools first appeared , “The world has changed, but education has not changed with it”. Children spend years in an antiquated educational system, studying subjects they will never use, preparing for a world that no longer exists. In other words, the old principles like “get good grades and look for a safe and secure job” are long gone, now you won’t get anywhere by struggling to master only one skill like you used to back in the day. Now you must know something about a lot of topics if you want to be successful so the best investment is in yourself. Buy books, go to seminars, take online courses or do whatever helps you learn but do it right and do it now so that later you won’t have to. Learn everything you can and learn as many skills as you can ,that’s the way to becoming wealthy and financially independent. Invest in your mind, sharpen in and put it to work every single day of your life.
Rich Dad Poor Dad by Robert Kiyosaki is a book, that focuses on guiding people in the creation of a healthy mindset, in which the author talks about his life experiences and things that you need to know if you want to become successful. In my opinion this book is a starting point for anyone looking to gain control of their financial future or become an entrepreneur.