The Rich Dad says one of the reasons the rich get richer, the poor get poorer, and the middle class struggles in debt is that the subject of money is taught at home, not in school. Most of us learn about money from our parents.
Rich Dad Poor Dad By Robert Kiyosaki
Book : Rich Dad Poor Dad By Robert Kiyosaki
Rich Dad Poor Dad By Robert Kiyosaki Summary
Author says money is not taught in schools. Schools focus on scholastic and professional skills, but not on financial skills. This explains how smart bankers, doctors, and accountants who earned excellent grades may struggle financially all of their lives.
Author says because I had two influential fathers, I learned from both of them. I had to think about each dad’s advice, and in doing so, I gained valuable insight into the power and effect of one’s thoughts on one’s life. For example, one dad had a habit of saying, “I can’t afford it.” The other dad forbade those words to be used. He insisted I ask, “How can I afford it?”.
Rich Don’t Work For Money
Author says Life pushes all of us around. Some people give up and others fight. A few learn the lesson and move on. They welcome life pushing them around. To these few people, it means they need and want to learn something. They learn and move on. Most quit, and a few like you fight.
Author says rich dad explained this point of view over and over, which I call lesson number one: The poor and the middle class work for money. The rich have money work for them.
Learning how to have money work for you is a lifetime study. Most people go to college for four years, and their education ends. I already know that my study of money will continue over my lifetime, simply because the more I find out, the more I find out I need to know.
The main cause of poverty or financial struggle is fear and ignorance, not the economy or the government or the rich. It’s self-inflicted fear and ignorance that keep people trapped.
Financial Literacy
Author says If you want to be rich, this is all you need to know. It is rule number one. It is the only rule. “Rich people acquire assets. The poor and middle class acquire liabilities that they think are assets,” said rich dad.
Author Rich dad says because students leave school without financial skills, millions of educated people pursue their profession successfully, but later find themselves struggling financially.
Most people don’t understand why they struggle financially because they don’t understand cash flow. A person can be highly educated, professionally successful, and financially illiterate.
Rich Dad Poor Dad Summary
Author says if you study the law, you become an attorney, and a study of auto mechanics makes you a mechanic. The mistake in becoming what you study is that too many people forget to mind their own business. They spend their lives minding someone else’s business and making that person rich.
The primary reason the majority of the poor and middle class are fiscally conservative—which means, “I can’t afford to take risks”— is that they have no financial foundation. They have to cling to their jobs and play it safe.
Start minding your own business. Keep your daytime job, but start buying real assets, not liabilities or personal effects that have no real value once you get them home.
Rich Invent Money
Author says in my personal experience, your financial genius requires both technical knowledge as well as courage. If fear is too strong, the genius is suppressed.
Most people only know one solution: Work hard, save, and borrow. So why would you want to increase your financial intelligence? Because you want to be the kind of person who creates your own luck.
Author says the single most powerful asset we all have is our mind. If it is trained well, it can create enormous wealth seemingly instantaneously. An untrained mind can also create extreme poverty that can crush a family for generations.
Work To Learn
Author says the most important specialized skills are sales and marketing. The ability to sell—to communicate to another human being, be it a customer, employee, boss, spouse, or child—is the base skill of personal success.
The world is filled with talented poor people. All too often, they’re poor or struggle financially or earn less than they are capable of, not because of what they know, but because of what they do not know.
If you are unwilling to work to learn something new and instead insist on becoming highly specialized within your field, make sure the company you work for is unionized.
Getting Started
Author says if you ask most people if they would like to be rich or financially free, they would say yes. But then reality sets in. The road seems too long with too many hills to climb. It’s easier to just work for money and hand the excess over to your broker.
Invest first in education. In reality, the only real asset you have is your mind, the most powerful tool we have dominion over. Each of us has the choice of what we put in our brain once we’re old enough.
Smart investors don’t time the markets. If they miss a wave, they search for the next one and get themselves in position. This is hard for most investors because buying what is not popular is frightening.
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