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Rich Dad Poor Dad is about Robert Kiyosaki and his two dads. One is his birth father (poor dad), and the second is his friend Mike's father (Rich dad). This book contains ten chapters. We learn 6 lessons from this book.
Lesson 1: The Rich Don't Work For Money
Rich dad says that poor mindset, people work for money whereas money works for people with a wealthy mindset.
Rich dad says that poor mindset people work in fear of no money, and when they have money, they spend money on liabilities and pay bills. At the same time, rich mindset people work on that way so that money works for them. And rich mindset people invest their money. They control their emotions and desire.
Lesson 2: Why Teach Financial Literacy?
Rich dad says poor mindset people think that problems will solve with more money but not. By getting more money, they become greedy, and they spend their money on liabilities and become as it was. We have so many examples that people become rich, and due to lack of financial literacy, they lost their money after some times. Rich dad says that we learned how to work for money in school but don't learn how to spend money to become rich.
" You must know the difference between an asset and a liability and buy assets."
Rich dad says the house is a liability, whereas poor dad says the house is an asset. Poor mindset people's expenses are high, so they cannot invest in an Asset. In contrast, rich mindset people invest their money in an investment, so their costs deducted from the income of their investments.
Lesson 3: Mind Your Own Business
In 1974 McDonald's founder Ray Kroc was invited to speak in an MBA class at the University of Texas at Austin. Ray asked, that what is my business? One student says hamburger business, then Ray says, "Ladies and Gentlemen, I am not in the hamburger business. I am in the real estate business." Ray focus was to sell the hamburger franchise, but those who bought the franchise also purchase the real estate under the franchise.
The secret is to mind your own business. Our education system trains us to do a good job and earn money. But ultimately, we work for money. The mistake in becoming what you have read is that we forget to mind our own business and pay attention to the work of others and make them rich. When I say mind your own business, the author says that it means doing your job and focusing more on increasing your property.
Real property, according to him, are:
- A business that does not require the presence and they own. Others manage that.
- Income-generating real estate
- Anything else has value, produce income or appreciates, and has a real market.
Rich Dad Poor Dad audiobook in English
Lesson 4: The History Of Taxes And The Power Of Corporations
In this lesson, author Robert Kiyosaki says that middle and poor people pay more taxes than the rich because the rich know to understand money. No matter how loud the crowd is shouting slogans of " take from the rich", wealthy people find ways to win.
Knowledge of the strength of the corporation's legal structure gives the rich a significant advantage compared to the poor and middle class. The poor and middle class do not have that many resources, so they sit silent. They do not take advantages of tax exemptions and miss a huge opportunity to build their wealth.
The rich went to the aid of corporations using their knowledge of money. The income tax rate for the corporation was lower than the personal income tax and can incur certain expenses before paying taxes.
The author said by his example that he started earning more through his corporation real estate in less than three years compared to selling his xerox machine. In this way, the money with the corporation worked for them. The rich people who own the corporation spend first and then pay taxes, while the employees who work for the corporation pay taxes first and then spend.
The author reminds people that financial IQ is made up of knowledge from four broad areas of expertise:
3 Understanding markets
4 The law
- Tax advantages
- Protection from lawsuits
Lesson 5: The Rich Invest Money
In this lesson, the author says that one thing that holds all of us back is self-doubt and self-confidence; it is not so much due to lack of technical information. The author says that the cash flow game is designed to create new and various financial operations. They always encourage adult students to look at the cash flow game as reflecting what they understand and what they need to cognize. Some people understand the cash flow game; some people love it, some do not understand the meaning. Some people earn a lot of money, but they do not know what to do with it.
Financial intelligence has more options. They say to be clever by feeding financial intelligence. The author says the brighter you are, the more successful you will be. They also say you do that is your most significant wealth, and you don't know that is your most significant risk. If you run away from failure, success will run away from you.
Simple mathematics and common sense are needed to make decisions about money. Do they say which one is harder for you?
1. Work hard. Pay 50% in taxes. Save what is left. Your saving then earns 5%, which is also taxed.
2. Take the time to develop your financial intelligence.
They say there are two types of investors:
1. The first and most common type is a person who buys a packaged investment.
2. The second type is an investor who creates investment.
- If you want to be the second type of investor, you need to develop three primary skills:
1. How to find an opportunity that everyone else missed
2. How to raise money
3. How to organize intelligent people.
Rich Dad Poor Dad audiobook in Hindi
Lesson 6: Work To Learn Don't Work For Money
Poor dad says job security is everything, whereas rich dad says learning is everything. Poor dad says that we should at least read more and more about things while rich dad says that we should know a bit of everything. The rich dad says that the workers work hard to not fire, and the owner pays the same amount so that the worker does not leave the job. Rich dad says that while searching for a job, we should not focus on how much we are earning but on how much we are learning; we should pay attention to them. The most dangerous task in running a company is managing people and how to lead people into a problematic situation. They say unless a person is used to changing, it's hard to change.
Most of the talented people are poor because they do not know anything about the business system. They say that people make a better burger than McDonald's, but they do not about the business system that's why they can't succeed, whereas McDonald's business system is excellent, so it is ahead.
The management skills needed for success are:
- Management of cash flow
- Management of system
- Management of people
Quotes From Rich Dad Poor Dad:
" The poor and the middle-class work for money. The rich people have money work for them."
" It's not how much money you make. It's how much money you keep."
" The rich focus on their asset columns while everyone else focuses on their income statements."
" My rich dad just played the game smart, and he did it through corporations, the biggest secret of the rich."
" The single most powerful asset we all have is our mind. If it is trained well, it can create enormous wealth."
" The great opportunities are not seen with your eyes. They are seen with your mind."
" Failure inspires winners. Failure defeats losers."
" I can't afford it shut down your brain. how can I afford it opens up possibilities."
Source : Rich Dad Poor Dad Book
From this Rich Dad Poor Dad book, we learn that we should create more assets that will work for us. We should understand financial knowledge, and We should mind our own business and more focus on increasing properties. Investment is an asset. We should know the difference between asset and liabilities, and the focus should be on growing wealth. We must move forward by removing these five fear, cynicism, laziness, bad habits, Arrogance, things, and gets starts.