Lessons from Rich Dad Poor Dad Book
Rich Dad Poor Dad is a book that tells the story of a boy with two fathers, one rich and one poor, and how they shaped his views on money and investing. The book contrasts the different mindsets and habits of the rich and the poor, and explains why financial education is crucial for achieving wealth and freedom.
Rich Dad Poor Dad has sold over 32 million copies in more than 51 languages across more than 109 countries, been on the New York Times bestsellers list for over six years, launched a series of books and related products; and received positive reviews from some critics.1 The book is popular because it provides a unique perspective on personal finance and investing that is different from the conventional wisdom. It also provides practical advice on how to build wealth and achieve financial independence
The book is divided into six lessons that the author learned from his rich dad, who was actually his best friend’s father. The lessons are:
Lesson 1: The rich don’t work for money; they make money work for them. The author learned that instead of working for a paycheck, he should acquire assets that generate income, such as businesses, stocks, real estate, etc.
Lesson 2: Why teach financial literacy? The author learned that financial literacy is the ability to understand the difference between assets and liabilities, and to use them to create cash flow. He also learned that taxes and inflation are the enemies of wealth, and that the rich use corporations to protect their income from them.
Lesson 3: Mind your own business. The author learned that his own business is his asset column, not his job or profession. He learned that he should focus on building and expanding his asset column, rather than increasing his income or expenses.
Lesson 4: The history of taxes and the power of corporations. The author learned that taxes were originally created to punish the rich, but now they punish the poor and the middle class. He also learned that corporations are legal entities that have many advantages over individuals, such as tax benefits, asset protection, and leverage.
Lesson 5: The rich invent money. The author learned that the rich use their creativity and financial intelligence to create opportunities and make money out of thin air. He also learned that fear and greed are the main emotions that drive people’s financial decisions, and that he should overcome them by educating himself and taking calculated risks.
Lesson 6: Work to learn - don’t work for money. The author learned that he should seek to learn new skills and knowledge, rather than just working for a salary or security. He also learned that he should diversify his skills and income sources, rather than specializing in one field or relying on one employer.
The book concludes with some practical tips on how to start applying the lessons of the rich dad, such as paying yourself first, seeking mentors, reading books, attending seminars, joining clubs, etc.
I hope this summary helps you to understand the main points of Rich Dad Poor Dad by Robert Kiyosaki. If you want to learn more, I recommend reading the full book or checking out some of the resources below.😊
Comments
Post a Comment