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What The Rich Teach Their Kids About Money – That The Poor And Middle Class Do Not! by Robert T. Kiyosaki
Rich Dad Poor Dad – Robert T. Kiyosaki – Summary
In the bestselling personal finance book of all time, Robert Kiyosaki challenges the way people around the world think about money and investing. Think you need a high income to become rich? Think having a house is an asset? Do you know the difference between good and bad debt?
In Rich Dad Poor Dad, Robert Kiyosaki shares the story of his two dads: his real one, the “poor father”, and the father of his best friend, the “rich father”. The first one was well-educated and worked as an employee his whole life. The latter has street smarts and used that to become an entrepreneur, eventually becoming one of the wealthiest men in Hawaii (and Kiyosaki’s mentor).
INVESTING / RICH DAD POOR DAD
“People who avoid failure also avoid success.”
About Robert Kiyosaki
Robert Kiyosaki is an American-born entrepreneur born on April 8th, 1947. He is the founder or creator of Rich Dad Company, which operates as a consultancy or educational firm that provides services to individuals and other corporations.
“Rich Dad Poor Dad Summary”
The two very different views on money, investing and employment shaped Kiyosaki’s life and convinced him that financial education is crucial for everyone.
The poor and middle-class strive for more cash, for a higher salary while the rich people design a method so that money would work for them – funny ha?
In today’s world, people believe in the fallacy that to be rich, you need to earn a high salary. The book ‘Rich Dad, Poor Dad’ questions this myth and challenges each one of you to think about the control you have over your financial life. Learn about personal finance and identify the characteristics common to wealthy people. Challenge the beliefs that your home is an asset and that your salary is enough to buy unnecessary things with your credit card.
What do our children need?
Lack of financial education in schools can contribute to the making of irresponsible children, and consequently grown-ups without a clue about finance. Teens often receive regular paychecks from their parents in the form of credit cards, cell phones, and an allowance, but they rarely receive lessons about excessive spending, the value of money and how to invest it.
The children are expected to receive financial education from both schools and parents, but most of them are reluctant to pass knowledge linked to money management.
Here’s an intriguing fact.
Wealthy and poor parents 99% of the times perceive money with a different set of eyes. The rich dad encourages and stimulates his kids to be risk-takers and decision-makers. To strive for financial independence, and advocate for success on a professional level.
They despise the governmental dependency and wish to see their kids standing firmly as individuals, not as a part of the “whole.” The rich dad believes that money is just the name of the game, all you have to do is learn how to play it that’s all. Further on, you can utilize these techniques and consequently accumulate wealth.
Why is better to be a good loser, than a bad winner?
It’s all about the risk!!
Poor and middle-class fathers prefer the safer route, the comfort zone, the job level – where you can settle until retirement. Actually, they are risk-aversive. They hate to lose. Robert underlines two key factors for the occurrence of this phenomenon: fear and greed.
The fear that we will “die,” collapse, get a divorce if we somehow turn more on the other side of the road – is a very common mindset. Your “safe” salary gives you stability, satisfaction, and keeps you functioning. We live our lives by a rule, eat, drink, repay debt, pay the bills and go on vacation.
Perfect, or is it?
What we buy gives us a momentary joy is not the real thing. In order to earn more and buy more expensive things, we must change our perspective. That doesn’t mean to get a better job that will generate higher income, but to become a courageous investor!!
If you thought a house with a large mortgage is an asset, think again. Kiyosaki argues that because it produces no positive cash flow, it’s actually a liability. You’d be better off investing in rental properties, stocks, bonds and so on.
Although he can take a very long time to make a point, Kiyosaki’s book is filled with sound advice on how to become financially stable and make your money work for you, instead of the other way around.
Key Lessons from “Rich Dad Poor Dad”
1. Hardcopy, or real life help
2. The Rich Formula
3. The Push Towards Success
Hardcopy, or real life help
With so many economic fluctuations, or ups and downs, only financial expertise can keep your money in the right place, regardless of the situation. If we put our attention on generating profits or making money – it’s best to start with outside help.
For instance, hiring accountants or financial managers to analyze your investments and give you tips on how to proceed. Develop a mindset, that is eager to win, but not afraid to lose !!
The Rich Formula
It is better to select the attributes that you love about yourself. Again, financial knowledge can help us choose those vital assets that match our long-term interests and plans. Every person must continue to work on its improvement and pay extra attention to invest in assets.
Finally, we must be careful when it comes to spending money on “stupid” and unnecessary things.
The Push Towards Success
Being full of doubts and lacking self-confidence is the recipe that spontaneously builds a wall between your potential and the market opportunities. If we do not have the courage, and stubbornness even the technical know-how can be of little use. The best method to get out of this circle is to learn and expand your knowledge on various economic topics.
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“Rich Dad Poor Dad” QuotesWinners are not afraid of losing. But losers are. Failure is part of the process of success. People who avoid failure also avoid success. Click To Tweet You’re only poor if you give up. The most important thing is that you did something. Most people only talk and dream of getting rich. You’ve done something. Click To Tweet I’d rather welcome change than cling to the past. Click To Tweet 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. Click To Tweet To know a little about a lot. Click To Tweet
Our Critical Review
We were amazed by the message conveyed in this book. Concrete, transparent, and straightforward piece of advice is hard to find, here you have it all!!
Don’t forget to put this book on your read-list.
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