Publisher - Plata Publishing
Genre - Business/Finance
Publishing year - 1997
Language - English
ISBN - 978-1612680194
Pages - 352
My Review -
Rich Dad Poor Dad is the debut book written by Robert T. Kiyosaki. It was first published in 1997 autonomously because publishers didn't recognize the potential in Robert's work. But his novel changed their way of thinking by becoming the number one financial book of all time. The title is intriguing, which is why many people chose it to understand what it is about.
Rich Dad Poor Dad Summary - The author's biological father is a school teacher who told him to work hard, study, and save money, which he considered him a poor dad. The rich dad is the father of Mike, one of his childhood friends. He told Robert and Mike to work smart, invest, and understand how money works. The rich dad is a businessman but doesn't have a college degree, but he understands the importance of the study, so it is the only thing common between both dads.
One day Robert went to his dad, asking how to become rich, but his poor dad had nothing to offer on this subject. So then, he set up a meeting with Mike's father and started working for him. The rich dad focuses on learning by doing; he doesn't believe in giving lectures. So when most nine years old enjoy their free time, Mike and Robert learn about the power of money.
According to the rich dad, the school needs to give financial education that helps in the long run. Instead, they teach students to land high-earning jobs and pay enormous taxes to the government. Poor dad did the same throughout his life; he worked for money without understanding that work is a short-term solution to a long-term problem.
Due to his rich dad's teachings, Robert retired at the age of 47 with growing and high-paying assets that are well established. He taught him that you need to be financially literate if you want to be rich. Most people think their house is their asset, but the rich dad explains it is a liability. We are all taught to do hard work, but this book helps you understand that you're doing what the other 80% of people do by doing hard work. One needs to be out of a rat race to achieve and acquire assets that will be fruitful.
An important distinction is that rich people buy luxuries last, while the poor and middle class buy luxuries first; this quote is accurate. People purchase things impulsively, and they fancy a different device after some time. They eventually wind up with debts. A rich person buys stuff from the interest money they receive from their investments. This is why the rich get richer, and the poor get poorer.
The author further describes how a person pays high taxes while the rich pay a minimal amount to the government. He talked about the permanent tax story about 1874 and the 16th Amendment and how people got fooled, and views about Robin Hood make me think that corporations are cruel, but they are brilliant. The owners believe in themselves because they know that people like us crave the job, not the business. Poor and middle-class people do not believe in taking risks; they work hard, earn a promotion, and always try to be happy with whatever small amount they leave after paying taxes and buying liabilities.
The reality is that the rich are not taxed. It's the middle class who pays for the poor, especially the educated upper-income middle class.
Rich people take calculated risks; Robert T. Kiyosaki gave examples of people who made billions and some who are too afraid to see the opportunities. Their stories will help you understand that it is never too late to begin, but yes, if you start early and lose, you have enough time to get up and rise again. All you need is to educate yourself, understand your investments market, connect with the people in this field and learn from them.
The author worked in various departments, learned new pieces of information, and kept his mind active. He worked on skills that were profitable to him and urged others to do the same. The impact of both dads is shown in his judgments. They made him a hard-core capitalist but also someone who is ethically culpable.
If money is involved, the fear of losing it is always there. No one likes to lose money, even the rich. The only difference is to overcome fear, laziness, arrogance, bad habits, and cynicism. Rich sees failure as an opportunity to grow and understand things better. It makes them stronger and wiser. A thing poor and middle-class people need to learn.
Robert T. Kiyosaki describes 10 steps that one can use to awaken their financial earnings. I am not going to explain it here, but sharing the pointers.
1. Find a reason greater than reality.
2. Make daily choices.
3. Choose your friends carefully.
4. Master a formula and then learn a new one.
5. Pay yourself first.
6. Pay your brokers reasonably.
7. Be an Indian giver.
8. Don't use assets to buy luxuries.
9. Choose heroes.
10. Teach, and you shall receive.
Some of my favorite quotes from the Rich Dad Poor Dad book are -
1. There is a difference between being poor and being broke. The broke is temporary. Poor is eternal.
2. It's not how much money you make. It's how much money you keep.
3. To become financially secure, a person needs to mind their own business.
4. Great opportunities are not seen with your eyes. They are seen with your mind.
5. Job is an acronym for "Just Over Broke." Unfortunately, that applies to millions of people.
6. I can't afford it; it causes sadness, and helplessness, which leads to despondency and often depression. How can I afford it? But, on the other hand, opens up possibilities, excitement, and dreams.
This book is a gem. It gives you simple explanations of how money works. It will not give you any trading tips, but it helps you understand the things no one teaches us in school or at home. The financial insights aid you in taking action and being your own boss. Many people don't like this book, but I think every novel is different, and being written by diverse authors who have distinct experiences makes it more interesting to read. Whether you're an experienced financer or a newbie, this book is perfect. I highly recommend it.
In this version, you'll find a summary of each chapter. So, if you don't have time to read the whole book, you can go through it and gain knowledge. The only question is, are you ready for that? If yes, then,
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