Rich Dad Poor Dad Book Details
“Rich Dad Poor Dad PDF” ranks among the top ten personal finance books. Many wealthy people also have the same mindset which Robert Kiyosaki describes in this book.
These mindsets contrast with those who are poor. According to Robert, the poor man in this book was his father, and the rich man is Robert’s mentor.
However, Robert’s mentor was barely able to finish the eighth grade while his father was a genius. The only real difference in their thinking was their mindset.
Rich Dad Poor Dad
8 hours and 22 minutes
Robert Kiyosaki – Author Details
Robert Kiyosaki is a successful entrepreneur and founder of two business enterprises: Rich Global LLC and The Rich Dad Company.
In later years he devotes his efforts to educating private finance practitioners through books, videos, and speeches. Rich Dad Poor Dad, one of his best-selling books, is just one of his 26 books.
Rich Dad Poor Dad Book Summary
Lesson 1: The Rich Don’t Work for Money
What separates the rich and the poor?
Throughout the first chapter, Robert described how the rich and the poor live in different ways from each other. Poor people and people from middle-class families both work hard to make their money.
On the other hand, Rich people can make their money work for them.
Most poor people prefer traditional methods of earning money. The safest path for poor people to earn money is to study hard, getting high grades, and finding a secure job with good pay that will ease their burdens.
Poor people are afraid of being without money. This is why they choose this path.
These people are likely to spend more money, even after they receive a promotion at work or bonus. For this kind of People, happiness is tied to money, but this happiness does not last very long.
Because of this, they continue striving to fulfill their desires while overcoming their fears. Robert suggests, don’t worry about paychecks and just get relax.
It’s time to think about innovation instead of getting stuck in the rat race. Too many people fail to grab opportunities that are right in front of them. You can make a big profit if you step back and take advantage of these opportunities.
Also Read : Think and Grow Rich Summary
Ultimately we must understand that changing ourselves is much easier than changing others around us. Therefore, Your financial hardship is your fault. Do not blame others for your difficulties.
Whenever you realize that you are the problem, this is the moment when you can take action, change yourself, become wiser, and learn something new.
To learn, you must combine passion, energy, and desire. At the same time, You must also learn how to deal with anger positively.
Robert believes that anger is extremely important because passion is simply a blend of anger and love. The better way to overcome fear is to follow our passion.
“If you realize that you’re the problem, then you can change yourself, learn something and grow wiser. Don’t blame other people for your problems.” – ROBERT KIYOSAKI
Lesson 2: Why Teach Financial Literacy?
“In school, we learn that mistakes are bad, and we are punished for making them. Yet, if you look at the way humans are designed to learn, we learn by making mistakes. We learn to walk by falling down. If we never fell down, we would never walk.” – ROBERT KIYOSAKI
A Lack of Financial Education
The number of financially literate people is extremely small. A large percentage of students will have little or no financial knowledge once they leave school.
Even though they can develop skills that will help them get a job in a specific field. But they’ll have difficulty keeping the money they make.
Although the students will have learned some ways of making money, they don’t know how to spend it. You can control your cash flow with financial literacy.
Learn How to Keep Your Money
It is often believed the best way to become a millionaire is to earn money. Despite the fact that you need to earn money, it is also crucial that you know how to handle it.
The measure of wealth is not simply how much you have; it is how many days you can live without working again. There are relatively simple ways to make money quickly.
However, the key to being rich is to possess this money over the long term. Being financially literate is crucial to long-term success.
Accountancy Is Key
Accounting isn’t one of my favorite subjects. But for someone who wants to be rich, Robert says that this is the most vital subject. First, it is important to understand the differences between assets and liabilities.
An asset is something you would be purchasing. Wealthy people accumulate assets, while the poor acquire liabilities. Assets can be a source of income for you. Liabilities are goods and services that take money from your pocket. A lot of people see houses as assets.
However, a house also comes with several liabilities, such as mortgage payments, insurance, property taxes, etc. Therefore, a house should be seen as a liability.
Lesson 3: Mind Your Own Business
It is important to understand that your profession is distinct from your business. You cannot rely on your job as your only source of financial security. It would be best if you spent your time developing your own business.
In Robert’s point of view, “financial struggle is often directly the result of people working all their life for someone else. Many people will have nothing at the end of their working days.”
You can use assets to acquire additional assets that will generate income for you in the future. Poor people and middle-class individuals spend most of their energy working for someone else.
As per Mr. Kiyosaki, Each year, the average American spends five to six months just paying their taxes.
Lesson 4: The History of Taxes and the Power of Corporations
Throughout the book, the author explores the origins of income tax.
Rich people play a smarter game today. Most of the government expenditures are paid by the middle-class, while the rich legally evade taxes. Initially, when taxes were introduced it was only for rich people.
While taxes are meant to penalize the rich, But now they are penalizing the poor and middle-class. Even the Government was happy because there are getting money very easily and they became more hungry.
Due to the government’s desire for money, taxation of the middle class became widespread as soon as possible.
The rich know how to avoid tax legally because they are smarter than others. This is because the rich are more financially knowledgeable than the poor.
Since finance is not taught in school, the average intellectual doesn’t know how to avoid taxes.
The rich are aware of how much they are exploited by this system, but they still do not let this stop them. The Knowledge of these four broad areas: Accounting, Equities, Investments, and Law – help them protect and enhance their assets.
Lesson 5: The Rich Invent Money
One of the things that hold us back is self-doubt. Most people wait around for luck or an opportunity, In contrast, the rich ones create opportunities from obstacles.
However, in the real world smart people don’t get ahead, but rather bold ones. You’ll spend your whole life waiting for something unlikely to happen if you stay in your comfort zone and refuse to take risks.
As Kiyosaki stresses here, financial literacy is important. Rich people don’t believe that they can earn more money by just working harder.
Besides, they work hard to develop their financial literacy so that they can improve their power and expand their options.
Also Read: The Psychology of Money Summary
Lesson 6: Work to Learn – Don’t Work for Money
According to the author, young people should “seek work to develop their skills, rather than to earn money”. You should not focus on a particular specialization, but rather attempt to know a little bit about everything.
The purpose of specialization should be for employment, not for becoming rich. It is better to take a job that teaches management skills such as handling cash flow, organizing systems, and managing people.
According to the author, you should seek jobs that use your ability to communicate, sell, and market. Each of these skills complements each other and is indispensable for wealth creation.
Lesson 7: Overcoming Obstacles
Every one of us is gifted, and all of us have great potential. The one thing that holds us back is self-doubt. Our biggest obstacle is not a lack of technical knowledge, but rather a lack of confidence.
Probably one of the best books I have ever read on financial advice. This book is a must-read for someone who is looking to achieve financial freedom.
This book has a good storyline and is providing several principles which you can take to reevaluate your finances. Below are a few of the most important lessons & Key takeaways from this book:
- Financial education is more powerful than money.
- Most middle-class and poor people work for money. Wealthy people have their money working for them.
- You earn money by owning assets. A liability can drain your pocketbook.
- Be honest with your failures, and don’t hide them. It is important to learn from them.
Where I Can Download Rich Dad Poor Dad PDF, Audiobook Free?
Paid / Free
Also Read: The 10X Rule Summary