Rich Dad Poor Dad
I continue to acquaint you with popular and interesting literature on financial literacy and today I bring to your attention a review of Robert Kiyosaki’s book “Rich Dad Poor Dad” . After reviewing this publication, you will learn the summary and essence of the book, its main ideas and messages, understand what it is about, and if you wish, you can always buy or download the full version.
Rich Dad Poor Dad Content.
Kiyosaki wrote Rich Dad Poor Dad at the age of 47. It was his first book, it also became the most successful and brought him worldwide fame as an author. The main idea of the book is a comparison of the way of thinking of two dads: poor (this is Robert Kiyosaki’s own father) and rich (this is the father of his friend).
It is noteworthy that almost until the moment of writing the book “Rich Dad Poor Dad” (and this is a very big part of life), Robert Kiyosaki himself was a chronic loser: his attempts to open a business repeatedly failed, he had huge debts and sued creditors. His future wife, Kim Kiyosaki, helped him get out of this state: she believed in Robert, helped him pay off his debts, and they began to build a joint business.
Rich Dad Poor Dad Book Summary.
One pattern can be observed: At the same time, people who can be attributed to the middle class seem to have everything necessary for life, but do not get out of debt, making all purchases on credit. The reason for this state of affairs is the financial outlook of different segments of the population. Children learn the basics from their parents, not from teachers at school, and as a rule, in adulthood they follow the example of their parents, trying to repeat their life path.
“Poor dad” – Kiyosaki’s father, has the mindset of an employee. He received a specialized education, was an intelligent person, worked in government institutions, had extensive work experience, built a career, but at the same time constantly struggled with financial difficulties. Of course, he wanted his son to repeat his path.
“Rich dad” – the father of Robert’s best friend, did not even finish eighth grade, did not work in the traditional sense, was not focused on serving a particular profession and career growth, but at the same time became one of the richest people in Hawaii. And he also offered Robert to go through his life path like this.
Robert equally appreciated the opinion of the two popes, so it was difficult for him to make a choice. He grew up surrounded by two adults who were authoritative for him with completely different views and felt the influence of both on the formation of his own worldview. As a result, he still chose rich dad.
The state in which his poor dad is, Robert Kiyosaki calls the “rat race.” That is, the constant running to and from work, the constant hectic performance of their work tasks in order to get a salary, spending everything they earn and repeating these monotonous actions in a circle throughout their lives. For life, the rat race exhausts a person, exhausts, undermines his health. If you wallow in them, a person will forever remain in poverty.
What’s stopping you from breaking out of the rat race?
- Fear and greed. Poor people are always afraid of being left without money – fear works here. And when they have money – they immediately seek to spend it – greed turns on. These negative emotions thus hold power over poor people.
- Talent and ability do not lead to wealth (there are many very talented people in the world who remain poor all their lives). To become rich, you must first of all be financially literate.
- Lack of self-education. Poor people receive a specialty, a profession, and they believe that it will “feed” them all their lives. By this principle they live and work. But in order to become rich, you need to constantly engage in self-education: acquire new and relevant ones.
- People are afraid to follow a path that is different from the generally accepted one, because in this way they can be condemned by society (including close people, relatives, friends).
So what is it that separates a rich dad from a poor dad? What does each of them teach their children? What ideas does he instill in them? Both dads of Robert Kiyosaki were hardworking people and worked diligently throughout their lives. However, there was one significant difference between them: in their attitude to money.
Poor dad told his son that you can’t love money, that it’s bad, and rich dad thought that it’s bad to not have money. Both dads behaved differently in life situations, one way or another related to finances. Here are the key differences, oppositions that can be found in the book:
Difference 1. Poor dad’s vocabulary was often “I can’t afford it.” Rich dad strictly forbade the use of this expression. He advised to put the question in a different way: “How can I afford it?”. The first phrase is, in fact, an excuse for one’s inaction. After it, the brain relaxes and switches to something else, while the second phrase, on the contrary, stimulates the brain to work on solving the problem.
Difference 2. Poor dad’s other life message was: “Study more to find a good company to work for!” Rich dad completed this thought differently: “Study more to find a good company and buy it!”.
Difference 3. Poor dad said, “I can’t get rich because I have you kids.” Rich dad phrased it this way: “I have to be rich because I have you kids.”
Difference 4. Poor dad warned his son: “Be careful with money, act only for sure, do not take risks!” While the rich had a different opinion: “learn to take risks!”.
Difference 5. Poor dad was convinced, “Our house is our biggest investment and our most important asset.” Rich dad thought, “My house is a liability, and if your house is your most important asset, you are in poverty.”
Assets and liabilities in the book “Rich Dad Poor Dad” by Robert Kiyosaki pays a special place. From his point of view, an asset is something that brings profit to its owner, and a liability is something that entails expenses. For example, the property in which a person lives, or the car in which he drives, is a liability. And if the property is rented out or the car is used to provide paid services, then it is an asset.
The goal of a rich person should always be the accumulation of assets – they lead to wealth. While poor people always accumulate liabilities, acquiring them even at the expense of loans.
Here are some more interesting thoughts from Kiyosaki’s book Rich Dad Poor Dad:
If a poor person is given a million dollars, he will not become rich. He will become a poor man with a million dollars. Most likely, he will quickly spend money, having bought himself a lot of liabilities.
A poor person solves a narrow range of problems, looks at problems very narrowly. A rich person thinks strategically, considering the goal from the perspective of a manager, not a performer.
A poor person perceives failure as a punishment, while a rich person perceives it as a useful experience.
But the biggest difference between rich dad and poor dad was this. Poor dad said, “I’ll never be rich!” and he was right. And rich dad said, “I’m a rich man!” and he was right too.
Rich dad was also convinced that a rich man would not claim that he would never be rich. Even when he was bankrupt, he continued to treat himself as a rich man. He argued that there is a big difference between being poor and being broke. Because ruin is temporary, but poverty is permanent.
The conclusion is simple. Poor dad was poor not because he didn’t earn much, but because his poverty was the result of his way of thinking and acting. Thoughts have a very great power over a person, so you need to be extremely careful with them! You need to be aware of their significance and control your thoughts.
Rich Dad Poor Dad summary
This is the summary and main ideas of the book Rich Dad Poor Dad by Robert Kiyosaki. This book is recognized as one of the best books for teaching financial literacy, so if you want, you can always buy or download it to read it in its entirety. On this I say goodbye to you. The website is your guide to the world of financial literacy. Add to bookmarks, subscribe to official pages on social networks, follow updates, read, analyze and put into practice the information received.
Be financially literate and strengthen your financial condition. See you soon! Probably it was worth talking about this book at the very beginning of this blog. But what I see is that many more people are not familiar with Robert Kiyosaki and Rich Dad Poor Dad, which was one of the first in a series of his famous bestsellers.
The book has helped millions of people around the world improve their financial lives. The same book was one of the first in a series of business books that started my financial self-education. It was she who helped me fall in love with reading business literature and made it clear that this is a prerequisite for growth in all areas of life.
Since then, I have not only begun to actively read books by famous businessmen, investors and successful personalities, but also actively work on my financial education. By the way, the term financial education is often mentioned in the book “ Rich Dad Poor Dad ”, but it is served in a completely different way than we used to imagine it.
For many people, financial education is associated with the economics department of some prestigious university. But for Kiyosaki, this is a completely different concept. According to the book, he received his financial education from a rich dad who dropped out of high school at 13 and went on to become a millionaire, investor, and business owner. Financial education is the knowledge of how money works.
What does it have to do with such knowledge that will allow you to make money work for you, and not you for money. The book is interesting primarily for the presence of very vivid and intelligible comparisons, which were achieved at the expense of the main characters – rich dad and poor dad.
According to the story, poor dad is the real father of Robert Kiyosaki. And rich dad is the father of his high school friend, a local businessman, whom the guys turned to with a request to teach them how to become rich. By the way, the poor dad of Robert Kiyosaki was not so poor.
He received an excellent education, was a Ph.D., began his career as a simple teacher and grew to the head of the department of education of one of the states. His poverty was determined primarily by his mindset and meager knowledge in the field of finance, which his pride prevented him from studying.
As a result, all he got by the end of his life was a meager teacher’s pension and the need to work to make ends meet.
As you can see, even in these few quotes from the book, there is a difference in the thinking of the two fathers from whom Robert Kiyosaki learned financial literacy. Right thinking is one of the key characteristics of successful people. And this is the first thing that I began to change in myself after reading the book.
Kiyosaki got a lot of negative critics, which, in fact, is inevitable if a person becomes popular and famous. There will always be people who will accuse him of repeating well-known truths voiced earlier by other people. Many criticize him for accusing traditional education that it is outdated and does not meet the modern requirements of life.
It is that modern education prepares workers and kills the opportunity to develop creative thinking, which is vital for bright, extraordinary individuals who are able to go against the crowd, develop fantastic businesses, create amazing products and services. I have already voiced my view on higher education more than once in various articles on this blog. In particular, I talked about . Another big discovery for me in the book “Rich Dad Poor Dad” was such concepts as Active and Passive.
Examples of assets are:
- for which we receive money, such as books, music, software, etc.
Examples of liabilities are:
- The property in which we live;
- A car, if it is not a worker, which helps you make a profit;
- Garage that does not generate income;
- Borrowed money, etc.
There are moments in the book that are certainly difficult to apply in the realities of the Russian market. For example, not everything is so simple with real estate. The author writes that he made a fortune on this. In our country, the entrance ticket to the real estate market is too high and not many can afford it.
The most important
Why do people get stuck in the rat race?
- The fear of being judged by society keeps us from leaving the rat race and becoming rich.
- Fear and greed can cause financially illiterate people to make unwise decisions.
- We do not train financial literacy, despite the fact that it is vital for both personal and social well-being.
How can I start my journey to a more prosperous life?
- Financial self-education and a realistic assessment of your funds are steps on the path to wealth.
- To become rich, you must learn to take risks.
- On the long road to wealth, stay motivated.
- Laziness and arrogance can lead even financially literate people to poverty.
How Do Successful Investors Think?
- Invest only in assets and avoid liabilities.
- Your profession pays the bills, but only your own business will make you rich.
- Study the Tax Code to minimize taxes.
Consider putting this plan into practice.