Rich Dad,Poor Dad – by Robert Kiyosaki

‘What the rich teach their kids about money – that the poor and the middle class do not!’

Robert’s dad was very highly educated and had a high paying job. His best friend’s dad didn’t finish high school and wasn’t employed by anyone else. Robert had the opportunity to learn from two different perspectives and life experiences and was able to draw his own conclusions. In ‘this book’, you will learn some great personal finance tips that, if applied correctly, could set you up for the rest of your life.

This book will definitely give you a different perspective on work and your finances. Oh, and by the way… his highly educated dad with the high paying job was who he called his ‘Poor Dad’…

Rich Dad Poor Dad

“Winners are not afraid of losing. But losers are. Failure is part of the process of success. People who avoid failure also avoid success.”

  At the age of nine, Robert Kiyosaki had two dads to learn from:

  On money one said “the love of money is the root of all evil” – the other said “the lack of money is the root  of all evil.” One dad was highly educated, went to Stanford Uni, Uni of Chicago was highly successful and had a highly paid career. He recommended you study hard so you can find a good company to work for. The other dad never finished 8th grade. He recommended you study hard so you can find a good company to buy. He believes in total self-reliance and would say “I don’t work for money , money works for me.”

  Robert chose to listen to Rich Dad. Rich Dad Poor Dad unpacks the key 6 lessons he learnt about money.

  Lesson 1 – The Rich Don’t Work for Money 

Robert Kiyosaki went to work for his rich dad (who was actually his best friend Mike’s father) when he was young. “I’ll teach you but not class room style. Work for me for 10c an hour take it or leave it.” So they swept the floors and stacked the shelves of the shop. Couple of weeks later, Robert wanted to quit – went to Mike’s dad to ask for a raise. As admitted by his Poor Dad, they are working for slave labour and are both worth at least 25c an hour. 

  But Rich Dad replied: “you’d best change your point of view. Stop pointing at me and thinking I’m your problem – then you would have to change me. If you realise you’re the problem, then you can change yourself, learn something and grow wiser.Most of the time, life does not talk to you. It just sort of pushes you around. Each push is life saying, wake up there is something I want you to learn. If you learn life’s lessons, you will do well. If not, life will just continue to push you around” Most of the time, life does not talk to you. It just sort of pushes you around. Each push is life saying, wake up there is something I want you to learn. If you learn life’s lessons, you will do well. If not, life will just continue to push you around” 

Do not Blame

Life pushes all of us around, some people give up and others fight. Deep down you were terrified of taking risks, you really wanted to win, but the fear of losing was greater than the excitement of winning. Deep inside, only you will know you didn’t go for it. You decided to play it safe.

  If you don’t learn this lesson, you will end up like an old employee who is a slave to the pay check. Most people never see the rat race they have caught themselves up in. The fear of being without money motivates us to work hard, then once we get the pay check greed or desire kicks in and starts thinking about all the things money can buy. The pattern is set – to get up, go to work, pay bills. People’s lives are forever controlled by two emotions, fear and greed, offer money and they will continue their spending. 

  Robert decided not to blame Rich Dad for their poor salary. Instead, he took the entrepreneurial path and looked for opportunities – they found one with a Comic Book Library. 

  Lesson 2 – Why teach financial literacy? 

Rich Dad told Robert early on that financial literacy is key to financial success. If you are going to build the empire state building, you need to dig a deep hole and build the foundations. If you are going to build a house in the suburbs, all you need is a 6 inch slab of concrete. The key rule is to know the difference between an asset and a liability.  An asset puts money in your pocket, a liability takes money out of your pocket. The rich buy assets. The poor only have expenses. The middle class buy liabilities they think are assets.

  Lesson 3 – Mind your own business 

 The rich focus on their asset columns whilst everyone else focuses on their income statements.  Robert says you can keep your day job, but start buying real assets, not liabilities. Keep expenses low, reduce liabilities and diligently build a base of solid assets. So what are assets? Assets are businesses that do not require your time, stocks, bonds, income generating real estates, royalties from IP and anything else that produces income.  Out of all the options, you are best acquiring the assets you love. If you don’t love it, you won’t take care of it. 

  Lesson 4 – Reduce taxes by using the power of a Corporation  

 If you want to avoid taxes, corporations are the key and are the biggest secret for the rich. A corporation is not a real thing, merely a document with some legal documents sitting in it. It creates a legal body without a soul. Using it, the wealth of the rich is protected. The rich ensure that personal expenses are claimed as corporate expenses, ensuring that tax is kept at a minimum.

  Lesson 5 – The Rich Invent Money 

Often in the real world, it’s not the smart who get ahead, but the bold. We all have tremendous potential.. Yet the one thing that holds us back is some degree of self-doubt. Bravado, cunning balls, tenacity whatever, is going to decide ones future much more than school grades do.

Lesson 6 – Work to learn, don’t work for money 

Job security meant everything to the Educated Dad, learning meant everything to Rich Dad. Rich Dad said the most important skills to learn are sales and marketing. The ability to sell – to communicate to another human being, be it a customer, employee, spouse or child is the base of personal success. 

One more interesting book is waiting for you