Rich Dad, Poor Dad by Robert Kiyosaki and Sharon Lechter

What a book! First of all the main thing I love about it… he tells you to stop being sheep! He’s like study hard, work hard and make money does not work anymore. And I am so for it! I mean think about it… how many folks you know ‘picked a career’ and specialized… then had to change coz of something or another.

Second folks like myself don’t learn quick from class but we will learn faster from practical experience or games and he has done just that. He’s invented games… his main ones are Cashflow 101 and 202. Back to the book.

His main message is build your assest, instead of working for money, make your money work for you! Take risks! Mutual funds and bonds and all are ok for the normal people… but rich folks… well just like he was taught by his Rich Dad… was to find ways to make money. His Poor Dad told him to stay in school… which is important but the message parents give these days of study hard, pick a career and work hard does not cut it. Everytime I hear it I don’t feel it! And my bro is a reminder why it don’t work… he picked pharmacy, then computers in uni… now he’s had to change coz of external reasons.

Are you prepared if anything happens? He repeats quite a bit but it’s a good thing coz we need to get it drilled in our heads. Instead of saying ‘I cant afford it’, ask ‘how can I afford it?’. Make your mind think of ways… and try it out… of course you shouldn’t tell folks about it coz there’s lots of ‘wellwishers’ out there. Very good book to get our mind out of that 9-5 earning, bill/mortgage/rent paying rut. There’s quite a bit more but you get the point… oh and there’s drawings too! Big up Viv for the book.

#ads

Some important takeaways
– Become knowledgable in finance and little bits about everything. Learn something about accounting, investing, markets, the law, sales, marketing, leadership, writing, speaking, and negotiating. An investment in knowledge pays the best interest.

– Generate assets that can pay for your expenses and needs.

– The poor earn > pay tax > then buy what they need. The rich earn > spend money > then pay tax after using expenses as tax deductible. This is done by making a corporation so it spends as much as it can and gets taxed on what is left.

– Rich people’s assets make their income. So if you want something make your assets work for it and buy luxuries last.

– Reinvest profits, buy more assets, reduce liabilities.

– Work to learn not to earn and to learn more about increasing finance. Invest in learning about investments. Find the best in their field and learn from them.

– Remember losing money is part of it. If you’ve not lost money you’re not reaching your potential. The more you fail the more you succeed. It inspires winners. They try something different.

– Don’t let emotions rule you. Don’t let peoples opinions bother you. Thats the job for poor dad.

Surround yourself by people smarter than you and pay them well

– Absorb and listen more and argue less.

– Profits are made when you buy not when you sell.

Cashflow Quadrant
These are 4 ways to make money and your aim should be to move from the left side to the right side.

How Money Works – Why The Rich Get Richer

Rich Dad Poor Dad Book Summary

Contents
-There Is A Need

Lessons
Chapter 1 – Rich Dad, Poor Dad
Chapter 2 – Lesson 1: The Rich Don’t work for Money
Chapter 3 – Lesson 2: Why Teach Financial Literacy?
Chapter 4 – Lesson 3: Mind You Own Business
Chapter 5 – Lesson 4: The History of Taxes and the Power of Corporations
Chapter 6 – Lesson 5: The Rich Invent Money
Chapter 7 – Lesson 6: Work to Learn – Don’t Work for Money

Beginnings
Chapter 8 – Overcoming Obstacles
Chapter 9 – Getting Started
Chapter 10 – Still Want More?

Epilogue – College Education for $7,000

#ads