Rich Dad Poor Dad tells the story of a man named Robert Kiyosaki.
Kiyosaki grows up with the benefit of two contrasting influences - his best friend’s father, known as ‘Rich Dad’ and his own father, who he refers to as ‘Poor Dad’. While his Poor Dad encourages him to take the ordinary route in life - school, college and a job at a reputable company, his Rich Dad pushes him beyond this comfort zone. Kiyosaki is given a number of lessons on how to create wealth and financial freedom, without becoming a ‘slave to money’.
We thought we’d pass on those lessons to you.
On initial reading of this title, you might assume that the rich do not work at all - but this isn’t the case. Kiyosaki is trying to say that the rich don’t work for money; they instead have money work for them.
“When it comes to money, most people want to play it safe and feel secure. So passion does not direct them. Fear does.”
Kiyosaki believes that even those with millions in the bank cannot sustain their wealth unless they are financially literate. There’s just one thing you need to know: the difference between an asset and a liability.
“Money without financial intelligence is money soon gone.”
This chapter teaches us why we should differentiate between our profession and our business. We should, in essence, ‘mind our own business’ - or in other words, should not spend our whole lives working for someone else.
“The rich focus on their asset column, whilst everyone else focuses on their income statements.”
This lesson opens with a brief history of taxes. Taxes initially came about to fund past wars in order for empires to fight for expansion, but in today’s world, they remain a regular part of society. Kiyosaki tells us that what sets the rich apart, is that they know how to manage their taxes. Here’s how:
“A person who understands the tax advantages and protections provided by a corporation can get rich so much faster than someone who is an employee or a small business sole proprietor. It’s like the difference between someone walking and flying”
Rich people are more likely to take risks in order to make a gain.
“Often in the real world, it’s not the smart that get ahead, but the bold.”
People spend years in school, achieve amazing grades and become really talented in a particular field. Yet, they still tend to struggle in life because, along the way, they have learned nothing about money.
“The world is filled with talented poor people. All too often, they’re poor or struggle financially or earn less than they’re capable of, not because of what they know, but because of what they don’t know.”
Whilst Kiyosaki can be repetitive at times, continuously telling his readers to veer from the ordinary, take risks and have money work for them, Rich Dad Poor Dad provides beginners in personal finance with six solid and thought-provoking lessons to kickstart their journeys towards sustainable wealth and financial freedom. The book is not only easy to read but is packed with anecdotes to bring Kiyosaki’s lessons to life, helping us understand and challenge the way we think about money.
Koody Approved ✅
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