Rich Dad Poor Dad Summary – Key reasons to be rich
Today, We are going to discuss the key reasons, Why only a few people get super-rich whereas most people live a poor or middle-class life. Rich Dad Poor Dad helps you to develop the mindset and financial knowledge you need to build a life of wealth and freedom, This is the summary of the rich dad poor dad.
This book gonna tell you how rich people think about financial literacy and teach their children, what are the mistakes that make people poor, how poor people think about financial literacy?
There are 10 chapters in this book and every chapter have mentioned that people haven’t given financial education from their childhood, no matter which country. It’s always said that get good marks in school and take admission in a good college so that you can get a good job.
A middle-class person also does the same, he learned the same and he teaches the same to their children.
This book is also took place in our best entrepreneur books of 2020 list.
Rich Dad Poor Dad Summary
In this book, Robert T Kiyosaki tells about his two fathers and their stories, the first dad is his own father (rich dad) and the second dad is his best friend’s father (poor dad) but he loved both the fathers. They both were hardworking and smart, when it comes to thinking and finances they were totally different.
Rich dad tells him that money is the main problem of everything. He always refuses to think of him about expensive and luxurious items and told him that we can’t afford these things. He advises him to do hard work and study well and get a job in a multinational company.
while the other dad, his best friend’s father (poor dad) tells him lack of money is the main problem of everything. He always used to inspire him to find ways to get what you want, doing this his mind will get sharp. He also advises him to do hard work and study but not to get a job, to give jobs.
Robert had an advantage, He has seen the journey and ups and downs of his both fathers with their different thinking.
He used his brain and started to follow his poor father and after some time that poor father became the richest man of Miami, Florida.
The most important thing that Robert learned from his dad and this whole book is also based on, Financial Literacy.
Financial Literacy means knowing the difference between assets and liabilities, now read this article carefully, these are not those normal commerce definitions. Robert has defined these things in a very easier and understandable way.
Asset: Anything that generates you money or help to generate money is an Asset.
Liability: Anything that burns your money or indirectly stuck your money without giving any ROI is a Liability.
Rich gets richer because they create their assets whereas middle class or poor just spend on their liabilities.
For example, There were two friends called ‘Friend 1’ and ‘Friend 2’, they both were in the same position and gets the same salary in the same company. Whenever they got their salary ‘Friend 2’ used to buy expensive clothes, watches, shoes, and other things which made him feel rich but he doesn’t understand that those were liabilities and over time their value will be reduced.
On the other hand, ‘friend 1’ has totally different mindset he doesn’t buy any unusual product which he doesn’t need, he used to save money and invest it into stocks, bonds, real estate (property) that you can rent out, self-learning and anything that generates money and increases in value over time.
After two years friend 1 became millionaire whereas friend 2 stayed in the same condition for his entire life.
Poor people: Gets income and he spends all his money into daily expenditures.
Middle class: Cash flow of the middle class is a bit different he gets income and spends all their income into daily expenditures and liabilities.
Rich: Gets income and invests that money to create multiple assets and then they spend into expenditures.
Rich dad Poor Dad moral lessons
“ Swift your mindset from a consumer mentality to investor mentality.”
“You don’t need a high income to become rich.”
“It’s doesn’t matter how much money you make, It’s how much money you keep.”
“Poor people work for money and rich people make money work for them.”
“Rich people create or acquire assets but the poor and the middle-class people acquire liabilities that they think are assets.”
“Our mind is the only most powerful asset we all have.”
Rich Dad Poor Dad Review
I have read this book approx 2 years ago and I kind of liked this book and many people are a fan of this book and the author and also only follows this book but I have mixed reviews about this book.
Things which I’ve liked in rich dad poor dad
The best thing about this book is that Robert T Kiyosaki has explained the basic financial concepts in a very easy and understandable way.
Many people think that a house is a perfect asset for them but they don’t know that is the biggest liability that you have unless you are not renting that out and this could be the best point of this book.
Robert also has talked about taxes in this book, he talked about the history of taxes and also told the who a rich people save his tax and how a middle-class people give over a big part of their income to their government.
so these were the thing that I’ve liked in this book.
Things which I’ve not liked in rich dad poor dad
Now I’ll tell you about the things which I’ve not liked that much, In this book, there are 10 chapters but the last two chapters 9th and 10th are the most important and interesting because mainly all the knowledge are provided on those two chapters only, so I think that the first 8 chapters of this book are unnecessarily stretched, lots of examples and stories are unnecessarily stuffed in this book.
The second thing I’ve not liked that is Robert just told you the base if we read carefully than we’ll find out that Robert told us to invest in stocks and bonds but he didn’t tell us that in which kind of stocks and bonds we should invest.
Although topics are not deeply covered, this book challenges your thinking, In a routine life where we are unable to think something, unable to find a new perspective, this book will give you a new perspective.
You can read more books on this topic like Think and grow rich, The richest man in Babylon, The millionaire next door.
Sourabh Sharma is a hobbyist book reader, Entrepreneur, and a literature student at Delhi University. A blog writer by day and a book reader by night, he is oathed to discuss himself in a third person but can be persuaded to do so from time to time.