- Author: Robert Kiyosaki
- Genre: Finance & Wealth
Audio version available:
Introduction
Rich dad poor dad is about personal finance and why the existing notions about personal finance and money believed by everyone are false. Notions like “your house is an asset” or “trading your time for money is an effective way for getting rich” are debunked in this book.
The book mentions how the wealthy accumulate and maintain their wealth through investing, passive income, and assets. All of the lessons are taught through a story containing a poor dad (Robert Kiyosaki’s father and a highly educated individual) and a rich dad (His friend Mike’s father who owns a business).
Who is it for?
This book is perfect for anyone interested in finance, accumulating wealth, and being successful in business and finance. Rich dad poor dad also offers insight into business, which makes it beneficial for entrepreneurs.
Chapter 1 – The rich don’t work for money
Key lesson(s):
The rich don’t work for money, they make money work for them.
Trading your time for money is not a good strategy for becoming successful financially.
Fear of being without money makes the poor work hard and greed gets them thinking about all the things they could buy. Which makes them need more money, which makes them spend more. And that keeps them in the rat race.
Chapter 2 – Why teach financial literacy?
Key lesson(s):
It’s not how much money you make. It’s how much money you keep.
A person can be highly educated, professionally successful, and financially literate.
An asset puts money in your pocket. A liability takes money out of your pocket.
Chapter 3 – Mind your own business
Key lesson(s):
Financial struggle is often the result of people working all their lives for someone else.
Start minding your own business. Keep your daytime job, but start buying real assets, not liabilities.
Chapter 4 – The history of taxes and the power of corporations
Key lesson(s):
Rich people play the game smart, they use corporations – the biggest secret of the rich.
Initially, both England and America did not tax their citizens. Taxes were only imposed when wars happened. However, in 1874 England implemented permanent taxes. The majority agreed to taxes because the wealthy would be taxed.
However, as the government’s appetite for money grew for money, they started taxing the middle class. Wealthy people saw this as an opportunity and started using corporations because corporations offered a way around taxes. Understanding the legal corporate structure gave the rich a steep advantage and allowed them to outsmart everyone else.
Chapter 5 – The rich invent money
Key lesson(s):
The single most powerful asset we have is our mind. If it is trained well, it can create enormous wealth. Millions can be made from nothing more than ideas.
Financial genius requires technical knowledge as well as courage. Take risks and let your genius convert that fear into power and brilliance. This advice will terrify some because most people like to play it safe when it comes to their money.
Financial intelligence is simply having more options and being able to figure out ways to create opportunities or alter situations to work in your favor.
Chapter 6 – Work to learn
Key lesson(s):
Job security means everything to poor people. Learning means everything to wealthy people.
“Learn a little about a lot” is rich dad’s advice for attaining success
Too many of us specialize in one skill. If we learned and mastered more skills, our income would jump exponentially. When it comes to money, the only skill most people know is to work hard.
Chapter 7 – Overcoming obstacles
The primary difference between wealthy people and poor people is how they manage fear.
Most people don’t win financially because the pain of losing money is far greater than the joy of being rich.
Chapter 8 – Getting started
There is gold everywhere, however, most people are not trained to see it.
If you ask most people if they would like to be financially successful, they would say “yes.” But when reality sets in and the road seems too long with too many hills to climb. Doing what everyone else does becomes easier, which is simply trading your time for money.
That is why having a greater reason is imperative for success. A reason or a purpose that is a combination of “wants” and “don’t wants.” For example: You don’t want to end up poor like your parents or You want to travel the world and give the people around you an amazing life.
Chapter 9 – Still want more? Here are some to do’s
Take a break and evaluate what is working and what is not working to utilize your time and resources properly.
Seek more ideas, start looking for more investing formulas.
Find a mentor that has done what you want to do and learn from them and their experiences.
Note
It is hard for us to capture all of the lessons taught in this book. We are going to be releasing content teaching lessons from this book soon, stay tuned!
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