- by Robert Kiyosaki
About the book:
The book “rich dad poor dad” was published in 1997 and yet still it holds the same credibility and full of intact knowledge. The author Robert Kiyosaki starts by narrating a story about his two dads- one is his biological father and other is the father of his friend Mike (his financial mentor who he considered equally as a father figure). He starts to make a bold comparison between his two dads.
Roberts’s father holds a PhD and goes through same office routine of 9-5. His view of his father is same as a stubborn model of a poor man. To whom, principles and rules means more than freedom and spends his entire life dependent on single source of income.
Contrary, his friend’s father happens to be a college dropout. However, he is always open to opportunities, has multiple sources of income and makes the money work for him (instead of working for the money). This personality epitomises the rich person for Robert.
However, that doesn’t mean that Kiyosaki frowns upon college education and is suggesting you to drop out. His only point is that formal education only teaches us how to make money but not how to manage and grow it.
He then talks about his own rules and journey with some lookouts for smart investments. Teaches a little about assets and liabilities and how you make money move for you.
Here some important key points that deserve a special mentioning:
1. Rich people acquire assets. The poor and middle class acquire liabilities that they think are assets.
2. “Rich dad believed that the words ‘I can’t afford it’ shut down your brain. ‘How can I afford it?’ opens up possibilities, excitement, and dreams.”
3. Financial aptitude is what you do with money once you make it, how you keep people from taking it from you, how to keep it longer, and how you make money work hard for you.
4. “There is a difference between being poor and being broke. Broke is temporary. Poor is eternal.”
5. “Money comes and goes, but if you have the education about how money works, you gain power over it and can begin building wealth.”
6. An asset puts money in your pocket. A liability takes money out of your pocket.
7. “A person can be highly educated, professionally successful, and financially illiterate.”
8. “The rich buy assets. The poor only have expenses. The middle class buy liabilities they think are assets.”
9. “Keep expenses low, reduce liabilities, and diligently build a base of solid assets.”
10.“If you work for money, you give the power to your employer. If money works for you, you keep the power and control it.”
11.“For most people, the reason they don’t win financially is because the pain of losing money is far greater than the joy of being rich.”
12.Whenever you feel short or in need of something, give what you want first and it will come back in buckets.
BOOK REVIEW (opinions or views solely belongs to blog owners and are not intended to malign any religion, ethnic group, club, organisation, company, or individual):
This book emphasises the importance of passive income (income other than your salary) and making money work for you instead of you working for money. Right from the beginning, the book succeeds in captivating the reader. That’s because it’s written from the perspective of a middle-class person and how he sees the rich people around him. If you are from the same middle-class socio-economic background, you can’t help but getting glued to this book.
Robert strongly believes that our education system does not teach us financial literacy. This book will help you debunk your most common notions related to money and wealth. Kiyosaki encourages readers to attain financial IQ by learning about investing, strategies, accounting, and law.
In order to get financially ahead, one has to tap the opportunities and take the risks. One should not sit and wait for the opportunity to come to them.
This book has helped me a lot and there is no denying the fact that it is mind-set shifting and thought-provoking book. If you want to set your money basics right, you simply can’t afford to miss reading this book. This book is and will always be a classic in the field of wealth management.
Kommentare