Rich Dad Poor Dad

Rich Dad, Poor Dad is a book written by Robert Kiyosaki and was first published in 1997. The book is about building wealth. That would be by investing in assets, real estate, and establishing. Growing your own business, financial literacy, and also financial intelligence is also included. This book is on the must-read list of people who are interested in investing, money, and the global economy. This book has been translated and sold in different languages and countries around the world. This book has become the #1 Personal Finance Book of all time.

Important Lessons:

• Lessons Robert Kiyosaki learned from his Rich Dad and the Poor Dad’s poor view about making money
• Hardships to overcome before becoming rich and staying rich
• Developing your financial genius
• Steps that you can put to work immediately

The author’s “Rich Dad” is his best friend’s father, who taught him a lot of lessons about money and finances. The “Poor Dad” is the author’s biological dad. He works hard to earn money but doesn’t have the best financial education.

• The Poor Dad advised him to stay in school and get good grades to find a safe and secured job in the future. The Rich Dad told him to study hard and find the right company to buy.
• The Poor Dad thinks that their house is their greatest asset and investment. The Rich Dad thinks of it as a liability.
• The Poor Dad makes sure that he pays all bills as soon as he receives income from his job. The Rich Dad preferred delaying paying his bills.
• The Poor Dad taught the author to make great resumes. The Rich Dad taught him to journal brilliant financial plans so that he could create jobs.

The Rich Don’t Work for Money

Most rich people work quite hard, but they do so in a different way than most people. Every day, wealthy individuals – and those who aspire to be wealthy – work and learn how to put money to work for them. “The poor and middle class work for money,” adds Rich Dad. “Money works for the rich.”

Having regular work, according to Kiyosaki, is only a temporary answer to the long-term problem. The problem of earning wealth and financial freedom. It’s fear that keeps most people working at a job. The fear of not paying their bills and the fear of being fired. Also the fear of not having enough money, and 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 of money—and then get angry at their boss.

Why Teach Financial Literacy?

Rich Dad told the author that he must know Asset and Liability, what are they and their differences. It’s not about how much money you make, but about how much money you keep.

Because of the costs involved with liabilities, you have to pay money out of your pocket. A residential house isn’t considered an asset. Unless its value rises sufficiently to cover the costs of ownership. Rental property is a valuable asset. It can provide enough passive income to cover the costs of operating and financing the property.

Mind Your Own Business

The two key messages about this chapter.

• Clear off your debt. Begin investing as early as possible in income-producing assets.
• Spend your time and invest as much of your money as feasible in assets to be financially healthy.

According to Kiyosaki, the majority of people mix up their career and their business. They spend their entire lives working for someone else. And producing money for themselves.

The History of Taxes and the Power of Corporations

Corporate-structured business owners earn money, spend, and pay taxes. Employees who work for corporations earn money, pay taxes and spend it.

People who work for someone else spend their money after taxes. Business owners earn and spend money before taxes.

Accounting, Investment Strategy, Market Law, and Law are the four primary components of what Kiyosaki refers to as “Financial IQ”. As Rich Dad Poor Dad points out, understanding the legal and tax advantages is critical to developing long-term wealth.

The Rich Invent Money

Finding possibilities or deals that other people don’t have the talent, knowledge, resources, or relationships for. This is what it means to invent money.

People who entrust their money to a developer or fund manager purchase investment packages. Most people invest in this fashion. Such as by purchasing ETF shares or putting money into a real estate crowdfunding endeavor.

Professional investors handle their own investments. They conduct market research to locate good bargains. Then engage specialists to oversee the daily operations. Professional investors share three characteristics:

• Recognize opportunities that others have missed.
• Raise capital for investment.
• Collaborate with intelligent people.

Work to Learn – Don’t Work for Money

Poor Dad was clever and well-educated. But he worked for money because he valued job stability above all else. By working to learn, Rich Dad became a millionaire.

As for Kiyosaki: “I recommend to young people to seek work for what they will learn, more than what they will earn. Look down the road at what skills they want to acquire before choosing a specific profession and before getting trapped in the Rat Race.”